How to Roll Over a 401(k) to JP Morgan Chase in 2024

Rolling over your 401(k) to JP Morgan Chase or JPMorgan Chase Bank is a popular choice for many retirement savers with old 401(k) plans (or other old employer-sponsored retirement plans). JP Morgan offers a range of investment products that appeal to a large share of investors, so it’s probably worth taking a look at their offering before making a final call about your rollover.

Here, we’ll discuss what a rollover is, how an IRA works, the different types of rollovers, as well as some of the more common questions around rolling your 401(k) to JP Morgan Chase.

What is a Rollover?

A rollover is nothing more than a movement of money from one retirement account to another.

When you roll over your 401(k) or other qualified retirement plan into an IRA — or any other account, for that matter — you’ll have to choose between a direct rollover and an indirect rollover.

Direct rollovers, or trustee-to-trustee transfers, involve money moving between two financial institutions — it never enters your hands. So long as you’re requesting a direct rollover between two accounts of the same tax status (i.e., pre-tax 401(k) to traditional IRA rollover or Roth 401(k) to Roth IRA rollover), you won’t have to worry about any tax or penalty charges stemming from your rollover.

Indirect rollovers, on the other hand, are a bit more complicated and leave you open to additional risks. With an indirect rollover, you receive your old retirement account plan balance via check or wire into your bank account (less any tax withholding). It’s then your responsibility to re-deposit your entire pre-tax account balance (before tax withholding) within 60-days.

Failure to re-deposit the money within the timeframe will almost certainly result in tax consequences. For additional information, consult the IRS website (IRS.gov) regarding 60-day rollovers.

If you want to roll over your retirement account to JP Morgan Chase, you certainly aren’t alone. Chase offers a multitude of IRA products, including self-directed IRAs as well as IRAs that come with a full-service financial advisor. As with any financial decision, the choice is ultimately up to you — so be sure to do your research.

What Is an IRA?

An Individual Retirement Account (IRA) is a retirement savings account that individuals with earned income can use to save for the future, all while enjoying certain tax advantages. The biggest differences between a 401(k) and an IRA include their respective contributions, and that you open an IRA outside of your employment relationship (401(k)s, on the other hand, are employer-sponsored).

There are various types of IRAs, including traditional IRAs, Roth IRAs, Simplified Employee Pension (SEP) IRAs, and Savings Incentive Match Plan for Employees (SIMPLE) IRAs. Any of these IRAs can also be rollover IRAs, but that depends if you’re using the account to receive funds from an old retirement account or if you’re just opening the account to contribute according to IRS limits.

An IRA rollover is a transfer of funds from a retirement account, such as an employer-sponsored plan, into an individual retirement account (IRA). The term “rollover” simply refers to a change in investment account custodian, and in most, cases, is a non-taxable event.

Money held in an IRA usually can’t be withdrawn before age 59½ without incurring an early withdrawal penalty of 10% of the amount taken out. If you’re working with a pre-tax, traditional IRA, the money will also be taxable to you when you remove it from the account. Most people use IRA distributions to supplement their respective incomes in retirement, which may or may not include Social Security (provided by the Social Security Administration, a government agency).

Know Your Retirement Saving Options

Note that you don’t have to roll your money anywhere if you don’t want to: it’s possible to keep retirement savings in a previous employer’s plan, roll it over to a new employer’s plan, roll it into an IRA, or cash it out.

When evaluating whether you should move your savings or not, consider the following:

• Account fees: 401(k)s vary in terms of their cost structures. Some are on the expensive end, while others are nearly zero-cost. Be sure to compare what you’re currently paying with what you could be paying for an account elsewhere.
• Investment options: 401(k)s can be limiting with regard to what you can invest in — usually just mutual funds, ETFs, and company stock.
• Tax situation: Depending on your total income for the year, it might be a good time for a Roth conversion — it also definitively may not be. Converting money from pre-tax accounts to Roth IRA status will cause income tax consequences, but it can make sense for certain people — especially if you’re in a lower-than-usual income year.

The best route, as always, depends on your total financial circumstances. When in doubt about your tax situation in particular, it’s always smart to consult with a qualified tax advisor.

FAQs

How much does Chase charge for IRA?

Chase IRA fees tend to be on the higher end of the brokerage account product line. Their fees include commissions, IRA maintenance fees, and potential advisory fees if you work directly with a financial advisor.

JP Morgan IRAs are administered by J.P. Morgan Securities LLC, which is the brokerage arm of JPM Chase Bank. The bank arm may offer IRA accounts, but you’ll likely miss out on access to investment products like mutual funds, ETFs, stocks, bonds, and other more esoteric securities.

Note that IRA brokerage accounts are not FDIC insured in the same way a cash account might be at a depository institution. Fortunately, most, if not all accounts at JP Morgan Chase offer some form of online investing option, and some even offer managed portfolios.

The best way to see how much Chase currently charges is to visit their website here, or you can begin your search on chase.com.

How do I transfer money from an IRA to a Chase account?

You’ll first need to have a Chase account open to transfer the money into. You’ll request a transfer of funds — beginning with the originating institution — to the Chase account of your choice.

Be sure to have both account numbers handy, and also understand if the transfer has any tax implications. Be careful, though many tax consequences don’t make themselves visible until after the tax year has ended and it’s time to file your tax return.

How do I roll over my IRA account?

First, you’ll need to have another account open to transfer your IRA into. Then, you’ll request a direct transfer from the originating plan administrator to the receiving financial institution. Your rollover should be complete within a matter of weeks, and you’ll be able to start investing your money according to your broader asset allocation.

How much is the minimum deposit for an IRA?

The IRS doesn’t prescribe a particular dollar amount for a minimum deposit to an IRA. You do have to have earned income to be able to contribute to an IRA, and you can’t contribute more than you earned for the year (with an upper limit of $6,500 if you’re under 50; $7,500 if you’re over 50).

There is no minimum or maximum rollover amount, either. Note that deposits and rollovers refer to two different concepts; annual IRA contribution limits only apply to deposit amounts.

Very generally speaking, most people meet the eligibility requirements to open an IRA account.

What is the difference between a rollover IRA and a traditional IRA?

A rollover IRA and a traditional IRA can be one in the same, but they don’t necessarily need to be.

A rollover IRA can also be a traditional IRA: this would just be a traditional IRA that’s been used to receive funds from an old retirement plan. A rollover IRA can also be a Roth IRA or a SEP-IRA, depending on the origin of the funds inside.

A traditional IRA can be a rollover IRA, but it doesn’t need to be. You can have a traditional IRA to which you’ve simply contributed the annual maximum every year but haven’t rolled any money into.

Note that pre-tax traditional IRAs will, like pre-tax 401(k)s, come with Required Minimum Distributions (RMDs) in retirement.

Get Help Managing a Chase IRA Rollover

Rolling over an IRA can be beneficial for your retirement plan as a whole: you’ll have fewer accounts, more investment options, and very possibly lower account fees. Managing a rollover during a job change or retirement is also no easy task, especially if it’s your first time moving large amounts of money around.

There are many benefits to working with a trusted partner to help manage your rollover. Capitalize has helped thousands of savers achieve their rollover goals, ultimately making their personal finance landscape that much easier to manage.

Learn how Capitalize can help you start your rollover process to Chase today!