What is a 401(k) rollover?

A 401(k) rollover is the process of transferring money from a 401(k) held at a previous employer to another retirement savings account. When you leave an employer, you typically have four options: leave the money in your former employer's plan (if permitted), roll over assets to a new employer's plan, roll over to an IRA, or take a cash distribution (taxes and possible withdrawal penalties may apply). Carefully consider all available options before deciding.

What is the difference between a 401(k) and an IRA?

A 401(k) is an employer-sponsored retirement plan available only through employers that offer one. When you leave that employer, you generally lose the ability to make new contributions to that plan. An IRA (Individual Retirement Account) is a retirement account you open independently, not tied to any employer. IRAs may offer a broader range of investment options than employer-sponsored plans, though investment options, fees, and protections differ between account types. Consult a tax professional about your individual situation.

How do I roll over my 401(k) to a TradeStation IRA?

To initiate a rollover into your TradeStation IRA, log in to HUB, click the Transfers button in the top right corner, and select 'Rollover a 401(k).' The process is powered by Capitalize, which helps locate your 401(k), verify account details, and submit your rollover request. If you do not yet have a TradeStation IRA, you will need to open one first. A rollover to an IRA is not your only option — consider all available alternatives before proceeding.

Is there a fee to roll over a 401(k) to a TradeStation IRA?

TradeStation offers this rollover service at no charge. However, commissions and fees associated with your TradeStation IRA account may apply once funds are transferred. Fees and charges are subject to change. Visit tradestation.com/pricing for full details on all fees and charges that may apply.

What is a direct rollover vs. an indirect rollover?

In a direct rollover, your 401(k) plan sends funds directly to the new IRA custodian without the money passing through your hands — this generally avoids immediate tax withholding. In an indirect rollover, the plan sends funds to you, and you have 60 days to deposit them into an IRA to avoid taxes and possible penalties. The plan administrator may withhold 20% for taxes in an indirect rollover. Consult a tax professional about which approach is appropriate for your situation.

Can I roll over a Roth 401(k) into a TradeStation Roth IRA?

Rollovers from a Roth 401(k) into a Roth IRA are generally available and may avoid immediate tax consequences when done as a direct rollover. However, tax treatment depends on your individual circumstances. Consult a qualified tax professional before initiating any rollover. TradeStation does not provide tax advice.

How long does a 401(k) rollover take with TradeStation?

Rollover timelines vary based on your former plan administrator and the method used. Traditional rollover processes can take several weeks. TradeStation's digital rollover experience powered by Capitalize is designed to streamline each step of the process. You can monitor the status of your rollover from within HUB.

What can I trade in a TradeStation IRA after rolling over my 401(k)?

TradeStation IRAs are self-directed and may allow trading of stocks, ETFs, options, futures, and more, subject to account eligibility and approval. Options involve risk and are not suitable for all investors. Futures trading involves substantial risk of loss and is not appropriate for all investors. Past performance is no guarantee of future results. Fees and charges may apply. Visit tradestation.com/pricing for details.

What IRA types does TradeStation offer for receiving a rollover?

TradeStation offers Traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs. For most 401(k) rollovers, a Traditional IRA is the common destination for pre-tax funds, while Roth 401(k) funds are typically rolled into a Roth IRA. The appropriate account type depends on your individual tax situation. Consult a tax professional before deciding.

Is a 401(k) rollover to an IRA the right choice for me?

A rollover to an IRA is not your only option. You should carefully consider all available options, which may include keeping your assets in your former employer's plan, rolling over to a new employer's plan, rolling over to an IRA, or taking a cash distribution (taxes and possible withdrawal penalties may apply). Consider differences in investment-related expenses, plan or account fees, available investment options, distribution options, legal and creditor protections, loan provisions, and tax treatment specific to your circumstances. Consult a qualified tax or financial professional before making a decision.

Is your 401(k) adrift? Bring it home.

Q: What if I don't know where my old 401(k) is?

The 401(k) rollover tool within the Transfers section in HUB may help you locate your account. The process is powered by Capitalize, which maintains a database of tens of thousands of employers and their 401(k) providers. If your old account cannot be located through the tool, you may need to contact your former employer's HR department directly.

A fast, easy way to roll over retirement savings from a previous employer into your TradeStation IRA. No paperwork, no hassle.

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Bring your old 401(k) into your existing IRA. Consolidate your retirement and manage it all in one place.

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Why roll over to a TradeStation IRA?

Manage your retirement strategy with more precision by moving your old 401(k) into a TradeStation IRA.

Powerful tools, same platform

Manage your IRA with the same advanced tools you already use: charting, screening, and analysis built for active traders.

Find old 401(k)s fast

Lost track of a retirement account? Our guided process helps you locate 401(k)s from previous employers.

Everything in one place

Consolidate your retirement savings into a single TradeStation IRA. One account, one strategy, one platform.

How to roll over your 401(k)

Roll over an old 401(k) in minutes with our streamlined online experience.

Tell us about your former employer and 401(k) provider so we can locate the right account.

Open a new TradeStation IRA or select an existing one to receive your rollover.

We verify details and submit your rollover, while guiding you through any required steps.

Monitor your rollover status from within TradeStation and see when funds will arrive.

Put your 401(k) to work by trading stocks, options, and futures in your TradeStation IRA with powerful tools and competitive pricing.

Important information about your 401(k) options

Consolidating retirement accounts into an IRA can offer more investment choice and a single platform experience, but it may also mean different fees, services, and protections. Compare all your options before deciding.

When you leave an employer, a rollover to an IRA is only one of several choices you may have for your 401(k) assets. A plan participant leaving an employer typically has four options (and may engage in a combination of these options):

Leave the money in your former employer’s plan, if permitted
Roll over the assets to your new employer’s plan
Roll over the assets to an IRA
Cash out the account value

Frequently asked questions about 401(k) rollovers

What's the difference between a 401(k) and an IRA?

A 401(k) is an employer-sponsored retirement plan that allows employees to save for retirement. 401(k) accounts are only available through employers that provide a 401(k) plan. When you leave the company, you typically lose your ability to make contributions to that 401(k).

An IRA (individual retirement account) is a type of account that you can open on your own which isn’t tied to your employer.

What's a 401(k) rollover?

It’s the technical term for when someone transfers money from a 401(k) to another retirement savings account. There are four options for 401(k) accounts held by a previous employer:

Leave the money in the former employer’s plan, if allowed;
Roll over the money to a new employer’s plan, if available and permitted;
Roll over to an IRA; or
Cash out the funds.

How do I rollover to an IRA at TradeStation?

To initiate a rollover to your TradeStation IRA, simply login to HUB, click the Transfers button in the top right corner, and then select Rollover a 401(k). Our rollover process is powered by Capitalize. Capitalize helps manage each step of the 401(k) rollover process for you, from locating your 401(k) to handling the transfer.

What is the cost of a 401(k) rollover into a TradeStation IRA?

This is a service we proudly offer at no charge. Keep in mind, there are commissions and fees associated with your account at TradeStation. Please visit our pricing page to learn more.

What if I don't know where my 401(k) is?

The 401(k) rollover tool in the Transfers section within HUB may help you locate your account. The process is powered by Capitalize, which specializes in 401(k) rollovers and maintains a database of tens of thousands of employers and their 401(k) providers.

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* Fees and charges may apply. Visit Pricing page to learn more about all the fees and charges that may apply.

Any potential tax advantages or benefits will depend on your circumstances. The information provided here is for information purposes only. It is not intended to constitute tax advice that may be relied upon to avoid penalties under any federal, state, local, or other tax statutes or regulations and does not resolve any tax issues in your favor. Visit www.IRS.gov/Publications to review IRS Publication 590-A and regarding Contributions to and distributions from Individual Retirement Accounts for additional information. Consult your tax professional about your individual tax situation.

A rollover of retirement plan assets to an IRA is not your only option. Carefully consider all of your available options which may include but not be limited to keeping your assets in your former employer’s plan; rolling over assets to a new employer’s plan; or taking a cash distribution (taxes and possible withdrawal penalties may apply). Prior to a decision, be sure to understand the benefits and limitations of your available options and consider factors such as differences in investment related expenses, plan or account fees, available investment options, distribution options, legal and creditor protections, the availability of loan provisions, tax treatment, and other concerns specific to your individual circumstances.

Options trading is not suitable for all investors. Your TradeStation Securities’ account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. See www.TradeStation.com/DisclosureOptions. Visit www.TradeStation.com/Pricing for full details on the costs and fees associated with options.

Security futures are not suitable for all investors. To obtain a copy of the security futures risk disclosure statement visit www.TradeStation.com/DisclosureFutures.

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