How to pick a 401(k) rollover advisor

Ask how an advisor is paid and what each service costs. Check their registration before you share account details.

Choices an advisor may discuss with you
Option	Upside	Downside
Leave it in the old plan	✓ Nothing to move now	✗ You cannot add new money. Old plan fees may still apply.
Move it to a new employer plan	✓ One account to manage	✗ Only if the new plan accepts transfers. Fees differ.
Roll it to an IRA	✓ Often a wider range of investments	✗ IRA fees vary by provider. Plan loans do not carry over.
Cash it out	✓ Money is available now	✗ Taxed as income. 20% withheld. A 10% extra tax applies before 59½ unless an exception applies.

Source: https://www.finra.org/investors/learn-to-invest/types-investments/retirement/401k-investing/401k-rollovers and https://www.finra.org/rules-guidance/notices/13-45

Ask how they are paid

Ask whether they earn commissions, fees or both. Get the answer in writing before any meeting, and ask how each is calculated.

Source: https://www.finra.org/rules-guidance/notices/13-45

Ask what each service costs

Request a written fee schedule. Compare the annual fee, any setup fee and any product charges.

Check the registration

Search the advisor on FINRA BrokerCheck. It shows registration, licenses and disciplinary history where reported.

Source: https://brokercheck.finra.org/

Compare more than one advisor

Meet at least two advisors. Compare their answers, fees and written terms side by side, using the same list of questions.

Ask how you can leave

Ask how you can end the relationship and move your account. Get the process and any charges in writing.

Common questions

What should I ask an advisor?

Ask how you are paid, what each service costs, where your money is held and how you can leave. Get written answers, and ask who supervises the advisor.

Is a fee-only advisor always the better choice?

No single type fits everyone. Compare how each advisor is paid and what each service costs before you decide.

Source: https://www.finra.org/rules-guidance/notices/13-45

What if an advisor pushes one option?

Pause and compare the four options yourself. Ask for the reasons in writing and check the advisor's registration first.