A rollover IRA at most financial providers will give you greater access to your money and wider investment options than are available through typical employer plans. When you elect a direct rollover, your pretax savings move from your employer-sponsored retirement plan directly into an IRA at the financial institution of your choice. In an IRA, your retirement savings continue to grow on a tax-deferred basis. However, you must pay income taxes upon conversion to a Roth on any money in the traditional IRA that has not been previously taxed. How Vanguard Can Help As the world's largest pure no-load mutual fund company, Vanguard brings 25 years of experience to bear in the retirement field.
Experience is important because of the intricacies of direct rollovers.
Each employer has different processes and forms for executing rollovers, and the Internal Revenue Service has its own requirements. Vanguard's extensive experience with direct rollovers has made what can be a confusing process as efficient and seamless as possible for its investors. Many mutual fund companies say they have experienced retirement specialists who can help you understand the rules and risks of retirement investing. Mutual Funds Magazine granted Vanguard the Best Service Award for 1999 based on comments from its readers. The award joins many others recognizing Vanguard's dedication to its shareholders' needs.