IRAs

Get a Cash Bonus for Opening a New IRA

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

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:

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.

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.

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.

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
The 25 Cheapest U.S. Cities to Live In
places to live

The 25 Cheapest U.S. Cities to Live In

Take a look at our list of American cities with the lowest costs of living. Is one of the cheapest cities in the U.S. right for you?
October 13, 2021
Gen X: How to Make Sure Your Future Self Remains Funded
personal finance

Gen X: How to Make Sure Your Future Self Remains Funded

If you’re a Gen Xer, like me, now might be the right time to talk to a financial professional to learn more about how to adjust your retirement planni…
October 20, 2021

Recommended

Boost Your Retirement Savings for 2022
Financial Planning

Boost Your Retirement Savings for 2022

If you were self-employed or had a side hustle in 2021, you can save even more in a tax-advantaged account.
October 26, 2021
The Best Fidelity Funds for 401(k) Retirement Savers
Investing for Income

The Best Fidelity Funds for 401(k) Retirement Savers

Fidelity funds are renowned for their managers' stock-picking prowess. We rate Fidelity's best actively managed funds that are popular in 401(k) plans…
October 25, 2021
Saving for College? Everything You Need to Know About 529 Plans
529 Plans

Saving for College? Everything You Need to Know About 529 Plans

529 plans offer considerable convenience and potential tax savings when putting money aside for education. That said, there are still a range of rules…
October 22, 2021
The Pros and Cons of Target Date Funds with Tony Drake
Financial Planning

The Pros and Cons of Target Date Funds with Tony Drake

The simplicity of target date funds has made them popular, particularly among 401(k) savers. But investors may be paying a price.
October 19, 2021