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How do I find an advisor for a 401(k) rollover?

Find and vet a fiduciary for a 401(k) rollover. Compare stay-in-plan vs IRA, ask fee and conflict questions, then verify RIAs on Best Investors and IAPD.

The short answer

Start with the decision, not the salesperson. Compare staying in the workplace plan, rolling to an IRA, moving to a new employer plan, or taking the cash. Then make a short list of registered investment advisers who will put that comparison in writing, and who will say whether they act as a fiduciary on that recommendation. Fiduciary means they have to be careful and put you first.

This page does not pick a path. The right choice depends on plan fees, taxes, creditor protection, and company stock. Use Search to find RIAs, read Form ADV, and check the same CRD on IAPD. The CRD is the ID number.

What to do

  1. List the options before you call anyone. You can leave the money in the old plan if the plan allows it, roll to an IRA, roll into a new employer plan, or cash out. Cash-outs are expensive. Get the plan's fee sheet. Note the fund costs. If you hold company stock, learn the tax rule called NUA (net unrealized appreciation) before you roll everything. If you left the job at 55 or older, check that plan's withdrawal rules before you move the money to an IRA.
  1. Compare staying and rolling on paper. Note plan fees versus IRA fees, fund choices, access to advice, loans, and creditor protection. Taxes matter for Roth conversions, after-tax balances, and cash-outs. Write two columns, stay and roll, and fill both before you interview anyone.
  1. Look for people who will analyze both choices in writing. Ask whether they act as a fiduciary on the rollover recommendation, and whether their pay rises if you roll instead of staying. Skip anyone who only pitches the IRA and will not price staying. See fee-only vs fee-based and questions before hiring.
  1. Search nearby RIAs. Open Search, enter your zip, and set a distance. On each firm page, read Item 5E (how they get paid), other-business answers that can pay them when assets leave a plan, and Item 9 (who can control client money). Codes link to the ADV guide.
  1. Check IAPD, then interview. Copy the CRD and open the same firm or person on IAPD. Download the brochure and Form CRS, the short relationship summary. Ask the questions below in writing. Broader hire steps: how to hire a financial advisor. Official file versus this site: Best Investors vs SEC IAPD.

Ask every candidate:

  • Will you act as a fiduciary on the recommendation to roll, stay, or move to another plan?
  • Will you put a written comparison of staying versus rolling, including fees and conflicts, in my hands before I move money?
  • Do you earn more if I roll than if I stay?
  • What total fees would I pay in year one after a rollover, counting advice, funds, and account fees?
  • What conflicts apply if I leave the money where it is?
  • Are you also a broker? Who would hold the IRA?
  • If I hold company stock, how does NUA, or a partial distribution, change your recommendation?

What to look for on Best Investors

  • Distance. Nearby offices come up by distance. Near does not mean better.
  • Firm ADV panel. Pay (5E) and other-business items show how a firm may get paid when money leaves a workplace plan. Codes link to /info/adv/.
  • Item 11. A blank panel is not a clean bill of health. Confirm it on IAPD.
  • Claim badge. A claimed owner can answer a message. That is contact, not an endorsement.

Common mistakes

  • Rolling because a call feels urgent, without comparing the cost of staying on paper.
  • Hiring after a "free rollover review" without asking how they get paid if you move the money.
  • Treating "fiduciary" as a slogan, instead of asking about this rollover recommendation.
  • Skipping Form ADV and the brochure, then finding wrap fees or product incentives after the transfer. A wrap is one fee that is supposed to cover advice and trades.
  • Mixing up a broker pitch with RIA advice. Check IAPD and BrokerCheck when the titles mix.
  • Assuming large assets mean better rollover advice. Assets are a size figure the firm reported. They are not your plan fees.
  • Rolling company stock without checking NUA or other distribution rules.

Related questions

Should I always roll my 401(k) into an IRA?

No. Staying can be cheaper, and it can keep cheaper funds, loans, or stronger creditor protection. An IRA can widen the menu or pull accounts together. A cash-out often triggers taxes and penalties. Compare your plan documents first. This page does not pick your path.

What fee questions matter most for a rollover?

Ask for the total cost if you stay and the total cost if you roll: plan fees, advice fees, fund fees, and account fees. Ask whether the adviser earns more when the money leaves the plan. Get the first-year number and the ongoing number in writing.

How do I tell if an adviser has a conflict on a rollover?

If their pay rises when you roll, that is a conflict. Read Form ADV for other businesses and for who controls the money. Ask if they, or a sister company, run the IRA company or the funds they would use. Get a written comparison of staying versus rolling.

Do I need a tax professional before I roll over?

Often yes if the balance is large, you hold company stock, you might convert to a Roth, or early-withdrawal rules apply. An adviser can compare fees. A CPA or a tax lawyer should still check the tax. This site does not give tax advice.

Is Best Investors enough, or do I still need IAPD?

Use both. Search here, then open the same CRD on IAPD for the brochure. IAPD is the official file. See Best Investors vs SEC IAPD.

Limits

This article does not tell you to stay, roll, convert to a Roth, or cash out. It is not tax, legal, or investment advice. Best Investors is not a regulator.

The firm filled out Form ADV. We do not audit assets, fees, or Item 11. IAPD can show a filing we have not loaded yet.

Get a written comparison of staying or rolling. If company stock, a Roth conversion, or an early withdrawal is involved, ask a CPA or a tax lawyer too.

Sources

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