Rollover IRAs

A Rollover Individual Retirement Account (IRA) allows you to save for retirement tax-deferred, meaning you won't pay taxes until you withdraw the money. It's intended for money "rolled over" from a qualified retirement plan. Rollovers involve moving assets from an employer-sponsored plan, such as a 401(k) or 403(b).

When you choose a Rollover IRA, the tax benefits allow your savings to continue to potentially grow, or compound, more quickly than a taxable account.

Taking your retirement plan money in cash may provide quick access, but it may not be the best long-term financial move because of the possible tax consequences. Plus, you lose the opportunity for your investment to continue to grow in a tax-deferred account.

Yes, you can make contributions to your IRA, subject to the IRS annual contribution limits ($5,500 for the 2015 and 2016 tax years, $6,500 if you're age 50 or older). But you must keep Roth IRA and traditional IRA money separate.

If you combine rollover assets and new contributions in the same account, the combined assets are considered "commingled" and may not be able to be rolled over into a new employer’s plan.

Yes, you can contribute to a traditional and/or Roth IRA even if you participate in an employer-sponsored retirement plan (including a SEP or SIMPLE IRA plan), as long as you stay within the IRS annual contribution limits.

Yes. You can roll over Roth dollars from a qualified retirement plan (for example, a 401(k) plan), into a Roth IRA. With a Roth IRA, you make contributions with money you've already paid taxes on (after-tax) and your money may potentially grow tax-free. Different from a Traditional or Rollover IRA, you won't pay taxes when you withdraw the money in retirement, as long as you have had the account for at least five years and you are at least age 59½.

Since 1958, American Century Investments has helped millions of investors like you reach your retirement goals. As a privately controlled and independent company, we are empowered to the right thing for our clients.

We provide guidance to you at no cost because we believe our number one priority is to help you be a successful investor. Professionally and actively managed mutual funds, free investment guidance, and exceptional service—it all adds up to a great value.

When you invest with us, we can invest in the future. 40% of our profits fund innovative medical research. $1.8 billion* in total dividends have been distributed to the Stowers Institute for Medical Research.

^{*As of 9/30/2022}

ADP is a leader in offering 401(k) retirement plans to employees like you, and American Century Investments is one of the largest money managers in the country. Working together, our goal is to provide you with retirement solutions to help you stay on the right path toward retirement.