Rolling Over the Money to a Rollover IRA

You may choose to roll over your money into an IRA at any financial institution, and your money can continue to be invested tax-deferred.

Pros:

  • No immediate income tax obligation or early withdrawal penalties with a direct rollover
  • Allows for continued tax-deferred investment
  • Larger selection and full control over investment choice
  • Consolidating retirement assets makes them easier to track
  • Potential to convert rollover IRA to a Roth IRA
  • Potential to roll over to a new employer's plan

Cons:

  • IRAs do not permit loans
  • Inability to transfer rollover IRA money to a new employer's plan, if money was combined with other IRA assets
  • Required minimum distributions must begin after age 70 in a non-Roth IRA

Important Investor Information: Brokerage and insurance products are:
 

Securities and brokerage services are provided by PNC Investments LLC, a registered broker-dealer and investment adviser and member FINRA, and SIPC. Annuities and other insurance products are offered by PNC Insurance Services LLC, a licensed insurance agency.

This material does not constitute an offer or solicitation in any jurisdiction where or to any person to whom it would be unauthorized or unlawful to do so.

PNC Investments does not guarantee the performance of any investment. Investing results may vary. Investments may lose money. Diversification and asset allocation may not prevent a loss of investment.

PNC Investments LLC, PNC Insurance Services, LLC and PNC Bank, National Association are each affiliated with The PNC Financial Services Group, Inc.

Leaving the Money in Your Former Employer's Plan

If you're retiring or changing jobs, you may have the option of leaving your money in your current plan.

Pros:

  • Consistency (investment choices may remain the same)
  • Allows for continued tax-deferred investment
  • No immediate withdrawal penalties
  • No immediate income tax obligations
  • Ability to move money to a rollover IRA or to a new employer's retirement plan

Cons:

  • Dependent upon employer's plan allowing the money to remain there
  • May need a minimum $5,000 balance to be eligible
  • Limited investment options
  • Inability to make additional contributions
  • Limited access to your money
  • Loans are not permitted
  • Required minimum distributions must begin after age 70

Important Investor Information: Brokerage and insurance products are:
 

Securities and brokerage services are provided by PNC Investments LLC, a registered broker-dealer and investment adviser and member FINRA, and SIPC. Annuities and other insurance products are offered by PNC Insurance Services LLC, a licensed insurance agency.

This material does not constitute an offer or solicitation in any jurisdiction where or to any person to whom it would be unauthorized or unlawful to do so.

PNC Investments does not guarantee the performance of any investment. Investing results may vary. Investments may lose money. Diversification and asset allocation may not prevent a loss of investment.

PNC Investments LLC, PNC Insurance Services, LLC and PNC Bank, National Association are each affiliated with The PNC Financial Services Group, Inc.

Rolling Over the Money to a New Employer's Plan

If you're joining a new company, you may be able to roll your money directly into your new employer's qualified retirement plan.

Pros:

  • Ability to consolidate retirement assets from more than one plan
  • Allows for continued tax-deferred investment
  • No immediate withdrawal penalties
  • No immediate income tax obligations
  • Potential for increased investment selection
  • Ability to build assets through continued contributions
  • Ability to take loans, if plan permits

Cons:

  • Risk of fewer investment options
  • Risk of restricted access to money
  • Required minimum distributions may begin after age 70 (unless you are still working for the same employer)

Important Investor Information: Brokerage and insurance products are:
 

Securities and brokerage services are provided by PNC Investments LLC, a registered broker-dealer and investment adviser and member FINRA, and SIPC. Annuities and other insurance products are offered by PNC Insurance Services LLC, a licensed insurance agency.

This material does not constitute an offer or solicitation in any jurisdiction where or to any person to whom it would be unauthorized or unlawful to do so.

PNC Investments does not guarantee the performance of any investment. Investing results may vary. Investments may lose money. Diversification and asset allocation may not prevent a loss of investment.

PNC Investments LLC, PNC Insurance Services, LLC and PNC Bank, National Association are each affiliated with The PNC Financial Services Group, Inc.

Receiving a Lump-Sum Distribution (Cash-out)

Depending on your age and your account balance, taxes and penalties may deplete a large chunk of your savings.

Pros:

  • The money is available immediately
  • No early withdrawal penalty, if you are age 55 or older
  • May have potential for income averaging

Cons:

  • Substantial amount of account balance may be consumed by income taxes (and penalties, if you are under age 55)
  • You may not have enough money when you need it in retirement
  • No more tax-deferred investment
  • Distribution could push you into a higher tax bracket

Important Investor Information: Brokerage and insurance products are:
 

Securities and brokerage services are provided by PNC Investments LLC, a registered broker-dealer and investment adviser and member FINRA, and SIPC. Annuities and other insurance products are offered by PNC Insurance Services LLC, a licensed insurance agency.

This material does not constitute an offer or solicitation in any jurisdiction where or to any person to whom it would be unauthorized or unlawful to do so.

PNC Investments does not guarantee the performance of any investment. Investing results may vary. Investments may lose money. Diversification and asset allocation may not prevent a loss of investment.

PNC Investments LLC, PNC Insurance Services, LLC and PNC Bank, National Association are each affiliated with The PNC Financial Services Group, Inc.

Rollover IRAs

If you're leaving a job, retiring, or have money left in a former employer's retirement plan, you may want to consider rolling over your plan account to an IRA.

An IRA is one of several options you have for managing your retirement plan. Review alternative options.

Rollover IRA Features & Benefits

  • IRAs can offer you more flexibility and a broad array of investment options
  • If you are eligible, a properly executed traditional rollover from your former employer's eligible retirement plan is not subject to taxes or penalties
  • You may have more flexibility in selecting distribution options and designating beneficiaries for your IRA than is offered under your employer plan
  • IRA assets can continue to be invested on a tax-favored basis
  • You might also be able to increase administrative ease and potentially reduce fees by consolidating multiple existing IRAs into a single IRA

Who's Eligible?

  • Anyone with an IRA is eligible to take a distribution from a former employer sponsored plan

Minimum to Open

No minimum

Account Fees & Minimums

Vary based on the way you choose to manage your IRA

Types of Rollover IRAs

You can roll over funds from a former employer's sponsored plan or existing IRAs into either a Traditional or Roth IRA.

Traditional IRA

Roth IRA

With a Traditional IRA, you can benefit from possible tax-deductible contributions and earnings that remain invested tax deferred.
 
  • Contributions may be tax-deductible or you may be able to make nondeductible contributions
  • Tax-deferred earnings may allow your investments to compound faster
  • A broad array of investment options
  • No maximum income limits for eligibility

 

Learn More
If you meet certain income qualifications, you can use a Roth IRA to invest toward your retirement with potential tax-free withdrawals in retirement.
  • After-tax contributions remain invested tax-free for retirement
  • Tax-free withdrawals for retirement, provided certain conditions are met
  • No annual lifetime Required Minimum Distributions at any time
  • Distributions of earnings become federally tax-free after five years and the owner is age 59
  • Distributions may be passed on to beneficiaries tax-free
Learn More

Rollover Options

Direct Rollover Your retirement funds are sent directly from your company qualified retirement plan to a PNC Investments Traditional or Roth IRA, and are not subject to current income tax. With a direct rollover, you don't take possession of the money. This may be the easiest way for your retirement assets to keep working toward your retirement goal.
Indirect Rollover Your funds are sent directly to you, less 20% that is withheld by the company for taxes. Once you receive the funds from your former employer plan, you have 60 days to deposit them (plus an amount equal to the 20% withheld) into a Traditional or Roth IRA. Any amount you do not deposit to an IRA in the specified time period, may be treated as a taxable distribution. In addition, depending on your age (if younger than 59½), these distributions may be subject to a 10% early withdrawal penalty. In an indirect rollover, you briefly take possession of the money.
Distribution You can decide to take the money from your employer-sponsored plan and not roll it into an IRA, but you will have to pay taxes on the amount withdrawn. Depending on your age (if younger than 59½), distributions may be subject to 10% additional early withdrawal penalty. In a distribution, you take full possession of the money and the potential tax consequences may be the highest.

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PNC Investments does not provide legal, tax or accounting advice. If you have IRAs or 401(k) accounts from former employers, you may have several options to consider, including keeping the money where it is, rolling it into a new employer's plan, rolling or transferring it into an IRA or cashing it out. When making the decision to roll over a 401(k) account to an IRA, please consult your tax or legal advisor regarding any tax or other implications, and consider that investment choices and retirement payment options between the accounts will differ, and other costs and expenses may differ.

This material is meant to educate and not to provide legal, tax, accounting or investment advice. PNC and its vendors do not provide legal, tax or accounting advice. You should seek the advice of an investment professional to tailor a plan to your particular needs.

Important Investor Information: Brokerage and insurance products are:



Securities and brokerage services are provided by PNC Investments LLC, a registered broker-dealer and investment adviser and member FINRA, and SIPC. Annuities and other insurance products are offered by PNC Insurance Services LLC, a licensed insurance agency.

Bank deposit products and services provided by PNC Bank, National Association. Member FDIC.

PNC Investments LLC, PNC Insurance Services, LLC and PNC Bank, National Association are each affiliated with The PNC Financial Services Group, Inc.