Personal Finance

4 Companies That Will Pay You to Roll Over a 401(k)

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The next time you leave a job, you should take your 401(k) with you. If you plan to roll the money over to a new institution, you might find one that will pay you to do so.

Several companies that act as individual retirement account (IRA) custodians will now pay you a cash bonus if you roll over your 401(k) to them. In general, the more money you roll over, the bigger your cash reward.

Note that these rewards go beyond 401(k) rollovers — simply opening a retirement account or brokerage account and funding it with the required amount can net you a bonus as well.

However, you need to move a lot of money — at least $10,000 and sometimes more — to get the bonus. So, rolling over a 401(k) into an IRA might be the easiest way to get the reward.

In fact, opening a brand-new IRA without transferring money from an existing IRA won’t result in a bonus because federal law limits IRA contributions to $6,000 per year for people 49 and younger and $7,000 for those 50 and older.

The following are a few companies that currently offer cash bonuses for retirement or brokerage accounts, or both.

E-Trade

Open a new retirement (or brokerage) account at E-Trade by June 30, 2021, and you can get up to $3,000 in cash. You will have to make a qualifying deposit to snag your money.

Just note that — as with all the bonuses listed here — the amount you deposit will need to be large to earn your bonus:

  • $10,000-$19,999 deposit: $50 cash bonus
  • $20,000-$24,999: $100 cash
  • $25,000-$99,999: $200 cash
  • $100,000-$199,999: $300 cash
  • $200,000-$499,999: $600 cash
  • $500,000-$999,999: $1,200 cash
  • $1,000,000-$1,499,999: $2,500 cash
  • $1,500,000 or more: $3,000 cash

To earn the reward, qualifying deposits must be made within 60 days of opening your account.

Ally

Open and fund an Ally Invest Self-Directed account by Sept. 30, 2021, and you can get a bonus of up to $3,000. Bonus amounts are as follows:

  • $10,000-$24,999 deposit: $100 cash bonus
  • $25,000-$99,999: $250 cash
  • $100,000-$249,999: $300 cash
  • $250,000-$499,999: $600 cash
  • $500,000-$999,999: $1,200 cash
  • $1 million-$1,999,999: $2,000 cash
  • $2 million or more: $3,000 cash

To earn the reward, qualifying deposits must be made within 60 days of opening your account.

TD Ameritrade

Open and fund a new retirement or brokerage account with TD Ameritrade by June 30, 2021, and you can get up to $2,500. The reward amounts are as follows:

  • $250,000-$499,999 deposit: $350 cash bonus
  • $500,000-$999,999: $700 cash
  • $1 million-$1,999,999: $1,500 cash
  • $2 million or more: $2,500 cash

To earn the reward, qualifying deposits must be made within 60 days of opening your account.

Charles Schwab

When a friend refers you to Charles Schwab, you are eligible for up to a $500 cash bonus when you open an IRA or brokerage account and make a qualifying deposit. Charles Schwab does not mention an expiration date for this offer.

Bonus rewards are:

  • $25,000-$49,999 deposit: $100 cash bonus
  • $50,000-$99,999: $300 cash
  • $100,000 or more: $500 cash

This offer is only good for new Schwab clients. If you already have a Schwab account, refer a friend so he or she can cash in.

To earn the reward, qualifying deposits must be made within 45 days of opening an account.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.


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