If you are leaving a company and want to keep your funds in a retirement vehicle, you can use a rollover IRA. There are a host of reasons you may want to do this. You may not be going to a new employer, or you may be going to one that does not have a plan into which you can transfer monies. Perhaps your old company does not permit you to leave funds in their plan if you are not working there. The beauty of using a rollover IRA is that it is seamless. With it, you are able to move money directly from one retirement account to another. You will not face current taxes or penalties and your retirement savings will continue to be invested.

When you roll over from a company plan to a rollover IRA, you have the chance to seek investment vehicles that might not have been available to you before. It is a great time to rebalance your overall retirement plan.

Banks, brokerage firms, or mutual fund companies can help you set up a rollover IRA. You will be able to invest in a wide range of choices, including stocks, bonds, mutual funds, bank CDs, and treasuries. While you are considering a rollover IRA you can think about consolidating assets from assorted accounts you have set up over the years.

Part of the beauty of rollover IRAs is their flexibility. It may be possible to roll over assets from this into a new employer's plan if they allow it and it seems like a better deal to you at the time. It is possible to withdraw from this form of IRA with the understanding that you will owe taxes and, if you are under age 59½, potentially the 10 percent penalty as well.