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Get a Cash Bonus for Opening a New IRA

Switching jobs or retiring? Some brokerages offer cash incentives for your rollover 401(k) money.

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It often makes sense for job switchers and retirees to roll over their 401(k) to a traditional or Roth IRA (see Pros and Cons of Rolling Your 401(k) Into an IRA). A handful of discount brokerages, including five of our top-ranked online brokers, compete for your retirement dollars that you’ve saved with another company by offering cash incentives that range from $100 to $2,500, depending on how much you invest. Consider:

See Also: 10 Things You Must Know About Roth Accounts

E*Trade. Open a new IRA with $25,000 rolled over from an employer retirement account, and E*Trade will kick in a $200 bonus. For a rollover of $1 million or more, you’ll get $2,500.

Fidelity. Score a $100 bonus when you fund a new IRA with at least $25,000. Or roll over at least $50,000 from a 401(k) or IRA and Fidelity will award you a $200 bonus. You’ll earn a bonus of $2,500 if you roll over $1 million or more.

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Merrill Edge. A rollover IRA funded with as a little as $20,000 will earn you a $100 bonus. For accounts funded with $200,000 or more, Merrill offers a $600 bonus.

Scottrade. Funding a new IRA with $25,000 from your old 401(k) will earn you a $100 bonus. You’ll earn a $2,500 bonus if you roll over $1 million or more to a new IRA.

TD Ameritrade. Roll over $25,000 or more to a new TD Ameritrade IRA and you’ll receive a $100 bonus. Rollovers of $1 million or more earn a $2,500 bonus.

Charles Schwab and Vanguard do not offer rollover incentives or bonuses.

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Don’t let a signing bonus sway you completely. Low commissions to trade stocks or exchange-traded funds or low fees on your investments can save you money in the long run. And finding a firm that suits your needs is far more valuable than a bonus. To see how leading online brokers stack up, see our guide to the Best Online Brokers.