The type of IRA depends on the type of 401(k) you are rolling over. In order to avoid paying taxes as part of your rollover, you'll want to have the same type of IRA as your 401(k).
401(k) type | You'll need |
Traditional (pre-tax) This is the most most common type | Traditional or "Rollover" IRA |
Roth (after-tax) | Roth IRA |
Mixed (both Traditional and Roth funds) | Both Traditional and Roth IRA |
Don’t sweat this decision too much, our rollover experts will review everything before processing your rollover and confirm all the details to make sure your rollover goes smoothly! If anything looks off, we’ll help you correct it before initiating the transfer.
Looking to do a Roth conversion? See our help article on that topic for more details!