A rollover IRA is a retirement account designed so you can move your former employer’s qualified retirement plan, such as a 401(k) or 403(b), into an IRA. Rollover IRAs function the same as traditional IRAs, meaning your funds can grow tax-deferred and your future contributions may be tax deductible.
Reasons to roll over:
Never lose track of your old 401(k)s or 403(b)s by consolidating into one IRA
Potential to build wealth over time with greater control over your investments
Access to a wide range of investment choices
Features offered with every Ally Invest IRA.
No annual or monthly maintenance fees.
Unlike some employer plans, our IRA plans don’t charge maintenance or annual fees.
Your choice of investment options.
Select self-directed trading to manage your own investments, or allow us to do the heavy lifting with a managed portfolio.
Dedicated support.
Call, chat, or email us. We’re happy to help with whatever you need.
The 411 on your 401(k) options.
When it comes to your old job’s 401(k) or 403(b) plan, you have 4 choices.
Consider if: You want greater control over your retirement funds. With an IRA you have more autonomy since you’re not bound to the offerings of your employer’s investment plans. And with an Ally Invest Self-Directed Trading account, you call the shots by managing your own trades.
Consider if: You’re in between jobs or doing freelance work. Though your funds can continue to grow tax-deferred, you may have better options with fewer fees elsewhere.
Consider if: Your new employer’s plan has great investment options. You’ll want to do your research since investment choices and potential costs differ greatly per employer plan.
We don’t charge an annual fee for maintaining an Ally Invest IRA account. There’s a $25 fee for terminating an Ally Invest IRA account, which is charged when all funds are removed from the IRA. If you make a full transfer out of your Ally Invest IRA account, there’s both a $50 transfer fee as well as the previously mentioned $25 termination fee. Partial account transfers have a $50 transfer fee.
You can fund your IRA using either of our Ally Invest accounts:
Self-Directed
Managed Portfolio
If you’re closer to retirement, you may want to consider one of our Ally Bank IRA optionsinstead. They’re FDIC-insured and better suited for the shorter term with more consistent returns.
Open the account you’ll use to fund your IRA. You can choose between Ally Invest Self-Directed Trading or an Ally Invest Managed Portfolio. Within the application select Rollover IRA when prompted, or choose Roth IRA if your 401(k) or 403(b) is currently a Roth account. Then contact your plan provider, and request a rollover. The most common method of transfer is a direct rollover, but you can also transfer through an indirect rollover. You’ll want to make sure your funds get deposited within 60 days to avoid additional taxes and penalty fees.
For direct rollovers, have your Ally IRA account number on hand, and ask your provider to complete a paperless wire transfer or mail us a paper check made payable to Ally Invest.
Checks can be mailed to:
Ally Invest
P.O. Box 30248
Charlotte, NC 28230
For indirect rollovers, keep in mind that employers typically withhold 20% of your transfer amount for taxes. When the rollover is complete, the 20% is returned to you as a tax credit for the year. Once you receive your workplace retirement funds, deposit them within 60 days into your Ally IRA by:
-Sending a check
First, fill out the IRA deposit slip. Make your check payable to Ally Invest, write rollover in the memo line, and mail it along with the slip to:
Ally Invest
P.O. Box 30248
Charlotte, NC 28230
-Requesting a bank wire transfer
Provide the following information to the bank sending the wire transfer to us:
Routing number: 071000288
Account number: Your Ally Invest account number
Name on bank account: Apex Clearing Corp
For further credit to: Name as it appears on your Ally Invest account
For further credit account: Your 8-digit Ally Invest account number
Ask your bank to denote that your wire transfer is for a rollover. Also, make sure to fill out the IRA deposit slip. Within your account, go to Bank Account Messages, choose IRA Distribution Request as the subject, and send the message with the completed deposit slip attached.
Your funds are ready to invest as soon as they’re rolled over. Though it varies, this typically takes up to 2 weeks. They’ll appear in your account the same day we receive the check or wire.
The easiest way to fund an IRA is through a bank (ACH) transfer. Once you open an account, you can link your bank account to your Ally Invest account by selecting Transfers and then Linked Bank Accounts. After you link your bank account, you can make contributions any time you want or set up an automatically recurring contribution.
You can also fund your IRA through a bank wire or by sending us a check. When funding by these methods, please be sure to indicate the contribution year on your wire or check so we can properly label your contribution.
Lastly, you can contribute to an IRA by performing a transfer of cash from an existing individual or joint Ally Invest account. If performing a journal from a joint account to an IRA Account, the original IRA Contribution Form will need to be notarized and mailed to Ally Invest. Download the journal request form (PDF)
Traditional IRA: An Individual Retirement Account (IRA) allows investors to deposit income, up to a specific annual maximum, toward investments that can grow tax-deferred (no capital gains or dividend income is taxed). Individual taxpayers are allowed to contribute 100% of compensation up to $6,000 ($7,000 for those 50 and over) to their traditional IRA. Contributions to a traditional IRA may be tax deductible depending on the taxpayer's income, tax-filing status, and other factors. Ally Invest has no annual fees or maintenance fees for traditional IRAs. Review IRS Publications 590-A and 590-B for more information on traditional IRAs.
Roth IRA: A Roth IRA is a retirement account in which contributions are not tax deductible (contributions are made with post-tax dollars). Roth IRAs do allow for tax exempt distributions. Typically, funds must have been held in the account for a minimum of 5 years, and you must be over the age of 59 ½ to make a qualified distribution. There are, however, exceptions to these rules depending on your specific situation. There are also income requirements which must be met to be eligible for a Roth IRA. As of 2020, if you file individually and earn $139,000 or more, you would not be eligible for a Roth. If filing jointly, those earning $206,000 or more would not be eligible. Ally Invest has no annual fees or maintenance fees for Roth IRAs. Review IRS Publications 590-A and 590-B for more information on Roth IRAs.
Rollover IRA: A rollover IRA is a retirement account designed to facilitate the movement of holdings from a corporate retirement plan, such as a 401(k) plan. The rollover IRA is interchangeable with a traditional IRA. Contributions may be tax deductible depending on the client's income level, and the same $6,000 ($7,000 age 50 and over) contribution limit that applies to traditional and Roth IRAs applies to rollover accounts as well. Ally Invest has no annual fees or maintenance fees for rollover IRAs. Review IRS Publications 590-A and 590-B for more information on performing a rollover.
Coverdell Education Savings Account (ESA): A Coverdell Education Savings Account is a tax-privileged account designed for saving for education expenses. When the account is established, the beneficiary of the account must be under 18 or be a special needs beneficiary. Annual contributions to Coverdell ESAs are limited to $2,000, and those contributions are not tax deductible. Distributions are tax free as long as they are used for qualified education expenses and don’t exceed the amount of those expenses. Review IRS Publication 970 for more information pertaining to Coverdell Education Savings Accounts.
In an IRA, you can trade stocks, ETFs, mutual funds, and fixed income products such as bonds or CDs. Because industry regulations prohibit IRA accounts from having margin, short selling and selling naked options aren’t allowed.
You may also be able to make up to Level 3 option trades in your IRA. Depending on your approval level, you may be able to use strategies such as: covered calls, cash-secured puts, long puts and calls, spreads, and other multi-leg strategies. Review our Option Account Agreement and Application (PDF) to learn more about our requirements for trading options at Ally Invest.
An IRA Rollover is the movement of assets from a qualified retirement plan, like a 401(k) plan or 403(b) plan, to an IRA such as an Ally Bank IRA or Ally Invest IRA. Rollovers could be subject to tax consequences. Consult your tax advisor regarding frequency of rolling over funds.
An IRA Transfer moves funds directly from the trustee or custodian at another institution to the institution of your choice. For example, from a traditional IRA at your other bank into your Ally Traditional IRA.
Learn more about the different ways to move your retirement money around and about converting one type of IRA plan to another, such as traditional to Roth. You can also visit IRS.gov for more information on rollovers, transfers, and conversions.
May have a wider range of investment options since you’re not limited by your employer’s choices
Easier to track your funds in one account rather than multiple plans
Typically fewer tax withdrawal requirements than with an employer plan
Potential cons:
Depending on your employer plan, investment-related costs in an IRA could be higher
You can’t take a loan from an IRA
More on leaving your funds in your old job’s plan.
Potential pros:
If you contributed more than $5,000, the money can usually stay put, no action needed
Growth remains tax-deferred
You may be able to take a loan using your plan
Potential cons:
If you contributed less than $5,000, the money may automatically roll over into an IRA or be sent to you
You won’t be able to make new contributions
Some former employers charge higher fees once you’re no longer an employee
Communication about your plan may be more difficult to access once you leave
More on transferring your funds into your new job’s plan.
Potential pros:
No penalty fee for a direct rollover
Potential to build wealth over time
Growth remains tax-deferred
Your new plan may allow you to take a loan
Potential cons:
Not all employers accept rollovers from other plans
Your new plan may have greater investment costs than your old one or an IRA
Typically more tax withdrawal requirements than with an IRA
More on cashing out your old plan’s funds.
Potential pros:
Immediate access to your funds
Withdrawals after age 59 ½ may be penalty free
Potential cons:
If you withdraw before age 59 ½, you’ll typically incur a 10% penalty fee and a 20% withholding to cover tax liability
Withdrawals lose potential to build wealth and tax-deferred growth
What you should know about indirect rollovers.
An indirect rollover is when you receive your workplace retirement funds from your plan provider or personally withdraw them with the understanding that you’ll deposit them into your new IRA. In indirect rollovers, plan providers oftentimes issue a check made payable to you, not your new IRA. You’ll need to make sure you deposit your funds within 60 days to avoid additional taxes and fees. Also, employers typically withhold 20% of your transfer amount for taxes in indirect rollovers. When the rollover is complete, the 20% is returned to you as a tax credit for the year.
Once you receive your workplace retirement funds, deposit them into your Ally IRA by:
Sending a check
First, fill out the IRA deposit slip. Make your check payable to Ally Invest, write rollover in the memo line, and mail it along with the slip to:
Ally Invest
P.O. Box 30248
Charlotte, NC 28230
Requesting a bank wire transfer
Provide the following information to the bank sending the wire transfer to us:
Routing number: 071000288
Account number: Your Ally Invest account number
Name on bank account: Apex Clearing Corp
For further credit to: Name as it appears on your Ally Invest account
For further credit account: Your 8-digit Ally Invest account number
Ask your bank to denote that your wire transfer is for a rollover. Also, make sure to fill out the IRA deposit slip. Within your account, go to Bank Account Messages, choose IRA Distribution Request as the subject, and send the message with the completed deposit slip attached.
What you should know about direct rollovers.
A direct rollover is when your workplace retirement plan provider makes a payment directly to your IRA. This could include issuing you a check made payable to your new IRA for you to deposit. For direct rollovers, no taxes are withheld from your transfer amount.
To initiate a direct rollover, have your Ally IRA account number on hand, and ask your provider to complete a paperless wire transfer or mail us a paper check made payable to Ally Invest.
Checks can be mailed to:
Ally Invest
P.O. Box 30248
Charlotte, NC 28230
Straight Talk Fees Guide
With any investing approach, high expenses can have a big impact on your returns. That's why we have affordable, competitive fees and low commissions that won't get in the way of your financial goals.
Financial Industry Regulatory Authority (FINRA) transaction fee (TAF) This fee is charged on all stock and ETF sales at a rate of $.000119 per share with a minimum charge of $0.01 and a maximum charge of $5.95. This fee is rounded up to the nearest penny. Bonds are also subject to a TAF fee and can be charged up to $0.75 per bond traded, regardless of the bond's par value.
$30.00 Plus interest for any trades from the earlier of the settlement date or date of deposit
Returned ACH
$30.00
Returned Wires
Applies to attempted third-party wires
$30.00
Pre Pay Settlement Fee
$20.00
Stock Certificate Deposit DTC Rejection Fees
$175.00
Stock Certificate Deposit Processing Fee
Commission on stock certificate deposited into Ally Invest will be equal to 5% of the principal amount of the trade. Stock Certificates cannot be used to fund a new account.
$300.00 per certificate
Non-transferable security charge per position.
$20.00 per month
Vault Fee
Restricted certificates held for missing paperwork, certificates for securities that are not DTC eligible, etc.
$60.00 per year charged monthly
Outgoing DTC
Electronic delivery of individual certificates via Depository Trust Company
$25.00 per position
DWAC Transfer Fee Per Position
$50.00 + Any transfer agent fees up to $150.00
DRS Transfer Fee Per Position
$115.00 per position
Paper Statements
$4.00 per account statement
Phone Assisted Orders
$20.00 + regular commission
Limited Trading Authorization (LTA) paper statement fee
Required for all accounts that have LTA
$4.00 per account statement
Paper Confirmations
$2.00
1099 Request for Exempt Accounts
$50.00
Tax document requests by fax and regular mail
$50.00
Option Exercise
$0
Option Assignment
$0
Option Position Management
$100.00 regular commission
Option Expiration Sellouts
$40.00 + regular commission
Margin Sellouts
$40.00 + regular commission
Restricted Accounts, and Broker-Assisted Trades
$20.00 + regular commission
Short Stock
Loan charges on hard to borrow stock.
Daily charge at cost
Worthless Securities Processing
$30.00 Other fees may apply
Reg T Extension
$10.00 + interest to settlement date
Foreign Stock Transaction Fee (not ADRs)
$50.00 + regular commission
Foreign Stock Incoming Transfer Fee
$50.00 per position
ADR and other foreign stock semi-annual charges
At cost
Voluntary Reorganization
$50.00
Entity Account Opening Fee
None
Entity Account Annual Fee
None
Index Products
Ally Invest charges this additional per contract cost on certain index products where the exchange charges fees. See a full list of index options that incur additional fees.
$0.35 per contract
Low-Priced Securities
For equities priced below $2 there’s a $4.95 base commission plus one cent per share on the entire order and the maximum commission charge generally doesn’t exceed 5% of the trade value. If the principal value of the order is less than the base, the commission is equal to the full trade value.
$0.01 per share
OTCBB and Pink Sheet Stocks
Minimum investment of $100 per trade
Unit Investment Trust
Purchase: $0 (Subject to charges from the UIT), Sale: $9.95
Other Transfer Agent and Trade Settlement charges for certain securities may be passed through to you by our clearing firm.
About Our Commissions
Commissions and fees from published websites are current as of 10/09/2019. Some brokers may offer more competitive fees than the ones published if certain balances or levels of activity are met. You should contact your broker to confirm their commission schedule.
Low-Priced Securities Pricing
We require a minimum opening purchase of $100 per order on OTCBB and Pink Sheet stocks. We don’t charge commissions for stocks and ETFs priced $2 and higher. Low-priced securities are charged a $4.95 base commission plus one cent per share on the entire order. We define a low-priced security as any equity below $2.00. In general, the maximum commission charge doesn’t exceed 5% of the value of the trade. If the principal value of the order is less than the base, the commission is equal to the full trade value.
Commissions for Mutual Funds
LOAD
Purchases: $0 (subject to change from mutual fund) Sale: (subject to change from mutual fund)
NO LOAD
Purchases: $9.95 Sales: $9.95
LOAD
Purchases: $0 (subject to change from mutual fund) Sale: (subject to change from mutual fund)
NO LOAD
Purchases: $9.95
Sales: $9.95
Commissions for Bonds and CDs
BONDS
$1.00 per bond ($10.00 minimum, $250.00 maximum) per transaction.
TREASURIES
$1.00 per bond ($10.00 minimum, $250.00 maximum) per transaction.
CERTIFICATES OF DEPOSITS
$24.95 per transaction
BONDS
$1.00 per bond ($10.00 minimum, $250.00 maximum) per transaction
TREASURIES
$1.00 per bond ($10.00 minimum, $250.00 maximum) per transaction
CERTIFICATES OF DEPOSITS
$24.95 per transaction
Ally Invest may act as principal on any fixed-income transaction. When acting as principal, we will add a markup to any purchase, and subtract a markdown from every sale. This markup or markdown will be included in the price quoted to you and you will not be charged any commission or transaction fee for a principal trade.