401(k) rollover

Have money sitting in an old employer retirement plan? You can give it a fresh start by rolling it over into a Vanguard IRA®.

Open an IRA

What is a rollover?

A rollover is when you move money from an employer-sponsored plan, such as a 401(k), 403(b), or 457(b) account, into an IRA.

Have questions about bringing over your 401(k) or another employer plan? We've got answers.

Contact us Monday through Friday, 8 a.m. to 8 p.m., Eastern time.

800-742-9998

Why move your employer plan to Vanguard?

Gain greater flexibility with your investments

Choose from a wider range of investments than most employer-sponsored plans offer.

See your retirement picture in a single view

Keeping retirement savings in one place makes it easier to manage your accounts and monitor progress.

Invest in outperforming funds

83% of our funds have performed better than their peer-group averages over the last 10 years.¹

Pay no costs or fees to get started

It takes just 3 steps to roll over your old retirement plan, and it costs $0 to open an IRA.²

How to roll over your 401(k) or employer plan

Step 1

Select a new or existing Vanguard IRA to receive the assets

 

If you're rolling over:

  • Pre-tax assets, you'll need a rollover IRA or a traditional IRA.
  • Roth (after-tax) assets, you'll need a Roth IRA.
  • Both types of assets, you'll need 2 separate IRAs.
Open an account to get started

Step 2

Contact the financial institution holding your employer plan

 

To initiate a direct rollover from your employer plan to your Vanguard IRA, ask your employer these questions.

 

Need a letter of acceptance?

 

You'll be able to generate a letter of acceptance during our rollover process.

 

Note: You may not be eligible to roll over a plan account that you're still contributing to.

Step 3

Deposit the money into your Vanguard account



Rollovers typically take 2–4 weeks to complete. In many cases, the amount will be sent directly to us. However, if you receive a check from the financial institution, you have 2 options.

 

Note: Once we receive your assets, we'll place them in the settlement fund in your new or existing IRA, where you must then select your investments.

Questions to ask

 

What types of assets do I have in my employer plan account?

Knowing whether you have pre-tax or Roth (after-tax) assets will help you figure out what type of IRA (traditional, Roth, or both) you need to open at Vanguard. If you own company stock in your plan, that may add a layer of complexity to your rollover.

What name did I use on my employer plan account?

A common situation that can delay a rollover is when a check from the current financial institution is made payable to a name that doesn't match your Vanguard account registration. Examples include use of birth name versus married name, a missing suffix (Jr., Sr., etc.), differing middle initials (John A. Doe versus John J. Doe), etc.

What are your rollover requirements?

Each employer plan will have its own rollover requirements. Some may have their own paperwork for you to fill out, while others may require a Medallion signature guarantee or additional signatures that need to be notarized. Occasionally, the plan administrator may also have to sign off on the rollover.

Are e-signatures or faxed copies allowed?

Some plans allow e-signatures and copies of paperwork. Others may require original paperwork with your original signature.

Do you need a letter of acceptance (LOA)?

Plan administrators often require an LOA from the receiving institution. This letter indicates that the receiving institution—Vanguard in this case—will accept the assets. It also lets the plan administrator know where to send your money. You can generate an LOA during our online rollover process.

Is spousal consent required?

Some plans may require a spouse to provide their signature in order to move the assets to an IRA.

Will the rollover check be sent to me or to Vanguard?

We’ll accept a check from the plan or from you. Just make sure the appropriate mailing guidelines, covered in the next step, are followed to avoid any processing delays.

If the check is sent directly to you and you're already a Vanguard client with online access, consider using our mobile check investment service offered through the Vanguard app.

How to deposit your rollover check

  • If the check is made payable to Vanguard, don't endorse it. Jus tmake sure it incloudes your Vanguard account number before mailing it to us.
  • If the check is made payable to you, endorse it, make sure it includes your Vanguard account number, and mail it to us within 60 days.

By U.S. mail:

Vanguard
P.O. Box 982901
El Paso, TX 79998-2901

By FedEx, UPS, and other couriers:

Vanguard
5951 Luckett Court, Suite A1
El Paso, TX 79932-1882

How to invest your rollover assets

Confirm your deposit is complete

You'll need to choose how your rollover IRA assets are invested. But first, check to make sure your assets were successfully deposited in your settlement fund, which typically takes 2–4 weeks.

Determine your asset allocation

Once the deposit hits, you'll determine your asset allocation—how you'll divide your portfolio among stocks, bonds, and short-term reserves.


Take our investor questionnaire

Discover your investment options

Next, choose your investment options. Build your portfolio with mutual funds and ETFs (exchange-traded funds) from Vanguard and other companies.

Shop Vanguard mutual funds and ETFs

Start your rollover today.

Open an IRA

Learn more about retirement plans

Understanding 401(k) to IRA rollover rules

Read article

401(k) vs. IRA: What are the differences?

Read article

What is an IRA? Everything you need to know

Read article

Frequently asked questions about rollovers

If you're rolling over pre-tax assets, you'll need either a rollover IRA or a traditional IRA. A rollover IRA is an account used to hold money from your former employer-sponsored plan, while a traditional IRA is used to receive any personal contributions you make.

For tax purposes, both are treated as traditional IRAs, and once you roll over into a rollover IRA, you can begin making personal contributions.

Yes. Roth 401(k) assets can be rolled directly into a Roth IRA with no additional tax due. Pre‑tax 401(k) assets can also be rolled into a Roth IRA—however, that’s a Roth conversion and the converted amount is generally taxable in the year of the rollover.

Learn more about Roth IRA conversions

To roll over an existing retirement plan to your new employer-sponsored plan, you must contact your old plan administrator and initiate a direct rollover to avoid taxes or penalties.

Generally, there is no IRS deadline to complete a direct rollover from a workplace plan to an IRA. However, if you receive funds from a financial institution in your name as part of an indirect rollover, you have 60 days to deposit the full amount into your IRA to avoid taxes and potential penalties.

A direct rollover occurs when money from a retirement account is sent directly from the old institution to the new institution without passing through your hands.

An indirect rollover occurs when you receive a distribution from your retirement account and then deposit the money into a new retirement account on your own. This must be completed within 60 days to avoid taxes and penalties (known as the 60-day rule).

You typically do not pay taxes when you perform a direct rollover from an employer-sponsored retirement plan to a traditional IRA. However, you could pay taxes if the distribution from an indirect rollover is not deposited into a retirement account within 60 days.

An employer plan that is rolled over into a Roth IRA through a Roth conversion could also be taxable that year.

There are several other options to consider. 



If you change jobs, you can roll over your old employer-sponsored retirement plan to your new employer plan. Having everything in one place may make it easier to manage.



If your retirement plan's account balance is above the mandatory threshold (usually $7,000), you can leave it with your old employer. This might work for you if the plan has low fees or quality investment options.

Or you could cash out—though this generally is not recommended. This will trigger income tax and, if you’re under age 59½, a 10% penalty. Plus, the plan administrator may also withhold 20% of the lump sum for taxes.

¹For the 10-year period ended March 31, 2026, 6 of 6 Vanguard money market funds, 77 of 108 Vanguard bond funds, 21 of 23 Vanguard balanced funds, and 172 of 196 Vanguard stock funds—for a total of 276 of 333 Vanguard funds—outperformed their Lipper peer-group averages. Results will vary for other time periods. Only mutual funds and ETFs (exchange-traded funds) with a minimum 10-year history were included in the comparison. Source: LSEG Lipper. The competitive performance data shown represent past performance, which is not a guarantee of future results. View fund performance

²There's no charge to open a Vanguard IRA. The fund or product you choose may have a minimum investment amount. A low annual account service fee of $25 is waived when you elect e-delivery of documents. You can sign up for e-delivery during and after the process of opening an account. See the Vanguard Brokerage Services commission and fee schedules for details regarding commissions and fees, including exclusions.

For more information about Vanguard funds and ETFs, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

All investing is subject to risk, including possible loss of principal.

There are important factors to consider when rolling over assets to an IRA. These factors include, but are not limited to, investment options in each type of account, fees and expenses, available services, potential withdrawal penalties, protection from creditors and legal judgments, required minimum distributions, and tax consequences of rolling over employer stock to an IRA.

We recommend that you consult a tax or financial advisor about your individual situation.

There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.

Vanguard Fiduciary Trust Company serves as the custodian of Vanguard IRAs.