Top places to roll over your 401(k) in 2025

[UNITED STATES] When you leave a job or retire, one of the most important financial decisions you’ll make is what to do with your 401(k). Many people opt to roll over their 401(k) into a new account to maintain control over their retirement savings and potentially avoid taxes and penalties. However, finding the best places to roll over your 401(k) can be a daunting task, given the variety of options available in 2025. This comprehensive guide will explore the top places to roll over your 401(k), helping you make an informed decision based on your financial goals and preferences.

Before diving into the best rollover options, it’s important to understand why rolling over a 401(k) is a smart move. When you leave a job, your 401(k) plan can stay in place, but there are usually drawbacks. These include limited investment options, higher fees, and less flexibility. By rolling over your 401(k), you can access a wider range of investment opportunities, lower fees, and more control over your retirement portfolio.

Rolling over your 401(k) allows you to consolidate your retirement savings and gives you more flexibility with your investment options. This flexibility is crucial for maximizing your long-term savings and investment returns.

Types of 401(k) Rollovers

There are a few options to consider when rolling over your 401(k). These include:

Rolling Over to an IRA: This is one of the most popular options, as IRAs often offer a wider range of investment choices and more control over your funds.

Rolling Over to a New Employer’s 401(k): If you start a new job, you can roll over your old 401(k) into your new employer’s retirement plan.

Cash-Out: While it may be tempting to cash out your 401(k), this is generally not recommended because of the tax penalties and the lost opportunity for long-term growth.

The next step is determining the best places to roll over your 401(k) in 2025, focusing on IRAs and new 401(k) plans.

Best Places to Roll Over Your 401(k) in 2025

1. Fidelity Investments

Fidelity Investments is widely regarded as one of the best places to roll over your 401(k) in 2025. With a broad selection of investment options, competitive fees, and excellent customer service, Fidelity offers a strong choice for retirement savers. The platform provides access to a wide array of mutual funds, ETFs, and other securities, making it ideal for those looking to diversify their retirement portfolio.

In addition to its investment options, Fidelity’s low fees set it apart from many competitors. "Fidelity's platform offers no-fee IRAs, making it a top choice for those looking to minimize their costs while maximizing investment potential."

Fidelity also provides robust educational resources to help users make informed decisions about their investments. Whether you are a novice investor or a seasoned one, Fidelity’s user-friendly platform makes it easy to manage your retirement savings.

2. Charles Schwab

Another top contender for rolling over your 401(k) is Charles Schwab. Schwab offers a wide variety of investment choices, including commission-free ETFs and no-fee IRAs. Schwab's low-cost, transparent pricing and customer-first service make it a favorite among investors. Additionally, Schwab offers personalized advice for those who need more hands-on assistance with their portfolio.

Charles Schwab’s "Schwab Intelligent Portfolios" is an automated investment service that makes it easier for individuals to manage their funds based on their goals and risk tolerance. This makes Schwab an excellent choice for people who want a mix of flexibility and simplicity when managing their retirement funds.

"Charles Schwab’s blend of low-cost options and smart portfolio management tools provides a unique solution for retirement investors in 2025."

3. Vanguard

Vanguard is another solid option for rolling over a 401(k), especially for those who want a long-term, buy-and-hold investment strategy. Vanguard is known for its low-cost index funds and strong emphasis on retirement planning. With a wide range of investment choices and low management fees, Vanguard helps investors save money while growing their portfolio.

Vanguard also offers a variety of tools and resources for retirement planning, including calculators and personalized guidance to help you assess your investment options.

"Vanguard’s commitment to low-cost investing and its reputation for helping investors meet their long-term goals make it a top choice for retirees and pre-retirees alike".

4. TD Ameritrade

TD Ameritrade provides another excellent option for rolling over your 401(k). Known for its user-friendly platform and diverse investment offerings, TD Ameritrade allows you to invest in stocks, bonds, mutual funds, and ETFs. With no account maintenance fees and a wide selection of commission-free ETFs, TD Ameritrade offers a cost-effective solution for 401(k) rollovers.

TD Ameritrade’s Thinkorswim platform is an added bonus for more advanced investors, offering powerful tools for charting, research, and analysis. For beginners, the platform also provides educational resources and easy-to-follow tutorials.

"TD Ameritrade offers a well-rounded suite of tools for every type of investor, from those just starting out to seasoned traders."

5. E*TRADE

ETRADE is another strong choice for rolling over your 401(k) into an IRA. Known for its wide range of investment options, including stocks, bonds, ETFs, and mutual funds, ETRADE offers a diverse platform for managing your retirement savings. One of the key benefits of E*TRADE is its no-fee IRAs, which can save you money in the long run.

For those seeking guidance, ETRADE offers excellent customer service and educational resources, helping investors make informed decisions about their retirement savings. Whether you're a beginner or a seasoned investor, ETRADE provides the tools and support you need to grow your 401(k) funds.

"E*TRADE is a standout choice for those looking for a comprehensive and accessible platform with strong customer support."

6. Merrill Edge

If you're looking for a platform with strong customer service and personalized investment advice, Merrill Edge is a great option. A subsidiary of Bank of America, Merrill Edge provides a seamless experience for those who already bank with the institution. This makes it especially convenient for individuals who want to manage their retirement savings alongside their regular banking.

Merrill Edge also offers competitive pricing, with no annual fees on IRAs and low trading costs. The platform gives you access to a variety of investment options, including stocks, bonds, and mutual funds, and provides educational tools to help you plan for your future.

"Merrill Edge’s integration with Bank of America makes it an attractive option for individuals seeking a more streamlined experience for both banking and investing."

7. Betterment

For those looking for a hands-off approach to managing their 401(k) rollover, Betterment is a leading choice. Betterment is a robo-advisor that automatically manages your portfolio based on your risk tolerance and retirement goals. Its low fees and automated nature make it a great option for people who want to invest without spending much time on the process.

Betterment offers a wide array of portfolios designed to match various risk profiles, ensuring that your 401(k) rollover aligns with your long-term goals. Additionally, Betterment’s tax-efficient investment strategies help maximize returns and minimize taxes, which is essential when rolling over retirement funds.

"Betterment is an excellent option for investors who want to automate their retirement savings and benefit from low costs and tax-smart investing strategies."

What to Consider When Rolling Over Your 401(k)

Choosing the best place to roll over your 401(k) requires careful consideration of several factors, including:

Fees: Look for platforms with low or no account maintenance fees, transaction fees, and management fees.

Investment Options: Ensure the platform offers a wide range of investment choices, such as stocks, bonds, ETFs, and mutual funds, so you can diversify your portfolio.

Customer Service: Opt for platforms with strong customer support and educational resources to help you make informed decisions.

Ease of Use: Choose a platform with a user-friendly interface, especially if you're new to retirement investing.

Rollover Process: Ensure the process for rolling over your 401(k) is straightforward, and check if the platform offers any support for transfers.

Rolling over your 401(k) is an essential step in managing your retirement savings. By choosing the right platform in 2025, you can lower fees, gain access to better investment opportunities, and have more control over your financial future. Whether you choose Fidelity, Charles Schwab, Vanguard, TD Ameritrade, E*TRADE, Merrill Edge, or Betterment, make sure to consider your goals, preferences, and the platform’s features before making a decision.

By carefully researching the best places to roll over your 401(k), you’re on your way to securing a brighter retirement. "The right rollover strategy today can set you up for financial success in retirement tomorrow."