T. Rowe Price 401k Rollover: Complete Step-by-Step Guide
How to roll over your T. Rowe Price 401(k) to an IRA, including paperwork, timeline, and investment options after you leave.
Key Takeaways
- 1T. Rowe Price rollovers can be done online, by phone, or mail
- 2Direct rollover (trustee-to-trustee) avoids 20% withholding
- 3You have 60 days for indirect rollovers - don't miss the deadline
- 4Compare T. Rowe Price IRA vs other providers before deciding
- 5Gold IRA rollover is another option for diversification
- 6No taxes or penalties if done correctly
- 7Keep at least one statement from your old account
When Can You Roll Over a T. Rowe Price 401(k)?
You can roll over your T. Rowe Price 401(k) when you experience a qualifying event - most commonly leaving your employer. You don't have to roll over immediately, but understanding your timeline helps.
- **Left your job**: Voluntary or involuntary - rollover eligible immediately
- **Retired**: Full rollover access
- **Laid off**: Don't leave money behind - roll it over
- **Still employed, over 59½**: Some plans allow in-service rollovers
- **Company changed providers**: Old plan may allow rollover
Don't Cash Out
Cashing out instead of rolling over triggers income tax PLUS 10% penalty if under 59½. A $100,000 balance could become $65,000 after taxes and penalties.
Your Rollover Options
When leaving a T. Rowe Price 401(k), you have several choices. Each has advantages depending on your situation.
| Option | Pros | Cons |
|---|---|---|
| Roll to T. Rowe Price IRA | Easy, same company | Limited to their funds |
| Roll to different IRA | More investment options | Research required |
| Roll to Gold IRA | Diversification, inflation hedge | Different custodian needed |
| Roll to new employer 401(k) | Loan option, higher limits | Limited to plan options |
| Leave in old plan | No action needed | Forgotten, limited control |
Step-by-Step T. Rowe Price Rollover Process
Follow these steps to roll over your T. Rowe Price 401(k) properly.
- 1Open an IRA at your chosen provider (T. Rowe Price or elsewhere)
- 2Contact T. Rowe Price Retirement Plan Services: 1-800-922-9945
- 3Request a direct rollover (trustee-to-trustee transfer)
- 4Complete required paperwork - available online or by mail
- 5Provide your new IRA account information for direct transfer
- 6Wait 5-10 business days for electronic transfer (checks take longer)
- 7Verify funds arrived and invest according to your plan
- 8Keep documentation for tax records
Request a Direct Rollover
Always request a "direct rollover" or "trustee-to-trustee transfer." This sends money directly to your new IRA without triggering withholding.
Exploring your retirement options?
Our 60-second quiz matches you with the right account type
Direct vs Indirect Rollover
Understanding the difference can save you thousands in unnecessary taxes.
| Direct Rollover | Indirect Rollover |
|---|---|
| Money goes directly to new IRA | Check sent to you first |
| No withholding | 20% mandatory withholding |
| No deadline pressure | Must deposit in 60 days |
| Simple process | Must make up withholding from savings |
| Recommended method | Only if direct not available |
The 60-Day Trap
With indirect rollover, you receive a check with 20% withheld. You must deposit the FULL original amount (including the withheld 20% from your own pocket) within 60 days, or it's considered a distribution.
Fees to Consider
Compare fees before deciding where to roll your money.
- **T. Rowe Price 401(k)**: Typically 0.02-0.10% admin fee plus fund expenses
- **T. Rowe Price IRA**: No account fee, fund expense ratios 0.45-0.85%
- **Discount brokerages (Fidelity, Schwab)**: Often $0 fees, lower-cost funds available
- **Gold IRA custodians**: Annual fees $75-300, storage fees vary
- **Rollover itself**: Usually FREE - don't pay for help
Fee Impact Over Time
A 0.5% fee difference on $200,000 costs you $1,000/year. Over 20 years, that's $20,000+ in lost growth. Compare fees carefully.
Alternatives to Rolling to T. Rowe Price IRA
You're not limited to staying with T. Rowe Price. Consider other options.
- **Fidelity**: Zero-fee index funds, no account minimums
- **Schwab**: Excellent service, broad fund selection
- **Vanguard**: Low-cost index investing pioneer
- **Gold IRA (Augusta, Goldco)**: Physical precious metals for diversification
- **New employer 401(k)**: May offer better funds or Roth option
Consider a Gold IRA Rollover
Many T. Rowe Price 401(k) participants discover their retirement is heavily concentrated in stocks and bonds. A partial rollover to a Gold IRA provides diversification that T. Rowe Price funds cannot offer.
- Physical gold provides inflation protection
- Gold often rises when stocks fall (2008, 2020)
- Roll over portion of 401(k) to Gold IRA, rest to traditional IRA
- Same tax-free rollover rules apply
- No penalties when done as direct trustee-to-trustee transfer
- Augusta Precious Metals offers free Gold IRA guide
Frequently Asked Questions
1How long does a T. Rowe Price rollover take?
Electronic transfers typically complete in 5-10 business days. Check requests take longer due to mailing time. Plan for 2-3 weeks total to be safe.
2Can I roll over to multiple IRAs?
Yes. You can split your rollover between multiple IRAs - for example, part to a traditional IRA and part to a Gold IRA. Just ensure each transfer is done properly.
3Do I need to sell my T. Rowe Price funds before rolling over?
Not necessarily. If rolling to a T. Rowe Price IRA, funds may transfer in-kind. If rolling elsewhere, funds are typically liquidated and transferred as cash.
Related Articles
Helpful Guides
Interactive Tools
Ready to Protect Your Retirement?
Join thousands of Americans who have secured their savings with physical gold. Augusta Precious Metals makes the process simple.