3 Reasons for IRA Rollovers

IRA rollovers provide you with an easy way to transfer your money to a new retirement account. Here are a few potential reasons that you might want to roll over an IRA.

1. More Investment Choices

Not every IRA provider presents you with the same opportunities for investment. Some IRA custodians have a very limited selection of stocks, bonds, and mutual funds to invest in. If you want to invest in other things, you might need to roll your funds over into a new IRA.

2. Custodian Fees

Another reason that many people roll over their IRAs is to get away from high custodian fees. If your IRA custodian is charging you more than you think they should, you might want to shop around for lower fees. You can then easily roll over the funds to a new provider and take advantage of the lower fees.

3. Change to Roth

The Roth IRA provides you with a different type of tax incentive than what you get with a traditional IRA. The Roth IRA is funded with after-tax money and the gains in the account are tax-free. When you reach retirement age, you will be able to withdraw the money from the account without paying any taxes. Many people are converting from traditional IRAs to the Roth IRA because of this.

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