• Skip to main content
  • Skip to primary sidebar

Ask Liz Weston

Get smart with your money

  • About
  • Liz’s Books
  • Speaking
  • Disclosure
  • Contact

Q&A: Identify the goal for rolled-over account

March 19, 2018 By Liz Weston

Dear Liz: I retired from civil service in 2014. Upon retirement, I requested that my Roth IRA funds be sent to a bank. The funds have been earning 0.6% interest. Is it possible to move the funds to another bank or elsewhere to earn a higher rate? Or, should I leave the funds at the bank until an unforeseeable emergency occurs?

Answer: It’s not clear from your letter whether you withdrew money from your Roth or simply had the whole thing transferred from one custodian to another (the bank). Either way, you’re free to move your money elsewhere. If the money is still inside the Roth, you’d move the Roth. If it’s outside, you’d just move the funds.

Before you do anything, though, figure out your goal for this money. If it’s your emergency fund, then it needs to be kept safe and liquid. An FDIC-insured bank account is likely the best bet, and many online banks are offering somewhat higher rates than you’re getting now.

If you want this money to grow, however, you’ll need to take more risk with it. That typically means investing a portion of it in stocks and bonds. If that’s your goal, look for a discount brokerage or low-cost mutual fund provider. If you’re new to investing, books such as Kathy Kristof’s “Investing 101” or Eric Tyson’s “Investing for Dummies” could be helpful.

Related Posts

  • Q&A: Taxes on retirement account withdrawals

    Dear Liz: I would love to give my grandchildren money, but I don’t want to…

  • Q&A: Retirement account distribution rules

    Dear Liz: My husband is 71 and retired. We have started withdrawing from one of…

  • Q&A: Here’s how to pick the best retirement account

    Dear Liz: Can you explain the difference between a Roth IRA and a Roth 401(k)?…

  • Q&A: Retirement account bears close scrutiny

    Dear Liz: About five years ago, I transferred a 401(k) account to an IRA with…

Filed Under: Q&A, Retirement Tagged With: interest rates, q&a, retirement savings, Roth IRA

Primary Sidebar

Search

Copyright © 2025 · Ask Liz Weston 2.0 On Genesis Framework · WordPress · Log in