How much does a financial advisor charge to handle a 401(k) rollover?

By Kaz · Published 6 October 2026 · How this site checks figures

Summary

It depends on how the advisor bills, and most of the cost comes after the rollover, not during it. The SEC says the fee an investment adviser charges for ongoing advice "is typically based on the value of all of the assets held in your account," so it rises as the account grows. In this site's example, a fee of 1% a year on a $250,000 rollover takes $2,650 in the first year and $125,436 over 25 years, and leaves the account $238,391 smaller than the same money with no advisory fee. A flat $2,500 a year costs $62,500 over the same 25 years, and a one-time $3,000 plan costs $3,000.

The ways advisers bill

Besides the asset-based fee, the SEC's page on working with an investment adviser puts three other arrangements into one of its questions to ask: "What is your usual hourly rate, flat fee, or commission?" Its bulletin on subscription fees describes a fifth, "a set, recurring fee that you pay for a particular service, typically on a monthly basis." Each one scales differently as the account grows:

Billing method	What happens as the balance grows	What to ask for in writing
Percentage of assets	The fee grows with the balance	The rate at your balance, and any breakpoints
Flat annual fee	Stays the same in dollars	What the fee covers, and whether it rises
Hourly or one-time plan	Paid once, or when you ask for help	The estimated hours or the fixed price
Commission	Paid when a product is sold to you	The commission on each product, and any surrender charge
Subscription	A fixed monthly amount	The total per year, as a share of your balance

$250,000 under four fee arrangements

Example: a $250,000 rollover earning 6% a year before fees, with no further deposits. The percentage fees are taken from the year-end balance; the flat fee is $2,500 taken from the account each year; the one-time fee is $3,000 paid at the start. All four fee levels are round numbers chosen for the arithmetic, not quotes from any firm.

Fee arrangement	Fees in year one	Balance after 25 years	Smaller than no fee by	Fees paid over 25 years
No advisory fee	$0	$1,072,968	—	$0
One-time plan, $3,000	$3,000	$1,060,092	$12,876	$3,000
0.50% of assets	$1,325	$946,594	$126,374	$67,494
Flat $2,500 a year	$2,500	$935,806	$137,162	$62,500
0.75% of assets	$1,988	$888,893	$184,075	$97,583
1.00% of assets	$2,650	$834,577	$238,391	$125,436

Calculated October 6, 2026. In the first year, 1% of assets and a flat $2,500 cost almost the same. By year 25, the 1% fee is about $8,430 a year, because it is charged on a bigger balance, while the flat fee is still $2,500. A tiered schedule that charges a lower rate above certain balances costs less than the 1.00% row once the balance passes its first breakpoint.

The SEC's fee bulletin does not say when its example deducts the fee, but the year-end method reproduces its results: $100,000 growing 4% a year for 20 years with annual fees of 0.25%, 0.50% and 1.00% ends at approximately $208,000, $198,000 and $179,000 in the bulletin, and at $208,413, $198,211 and $179,213 here.

The written reasons you're owed

A rollover recommendation from an investment adviser, broker-dealer, bank or insurance company relying on the Labor Department's PTE 2020-02 has to come with paperwork. The DOL's FAQ says the firm must "document and disclose in writing the specific reasons that a rollover recommendation is in the retirement investor's best interest," weighing the option of leaving the money in the plan, "the fees and expenses associated with both the plan and the IRA," whether the employer pays some of the plan's costs, and the services and investments on each side. The same exemption requires firms to "charge no more than reasonable compensation." How to compare rollover IRA providers uses those same four factors for doing the comparison yourself.

Where to read the fee before the first meeting

Advisers and brokers must hand you a relationship summary, Form CRS, "when starting a relationship with you," and again when an account changes, which the SEC's glossary says includes an IRA rollover. Investment advisers also give you a Form ADV Part 2 brochure. A firm's Form CRS can be looked up with the free search tool on Investor.gov before you talk to anyone. Look for the fee section and note whether the rate is charged on all assets or only those the adviser manages.

Putting your own numbers in

Your old 401(k)'s costs are the other half of the comparison. The 401(k) fee disclosure gives them in dollars, and the fee calculator takes a percentage fee and a flat fee at once so the two can be compared on your balance. What a 1% fee costs over 25 years adds yearly contributions to the same arithmetic, and robo-advisor IRA fees cover the automated services at 0% to 0.35%.

If you want names of advisers to compare, matching services exist; SmartAsset's advisor matching is one. Whoever you meet, ask for the fee in dollars at your balance and the written rollover reasons before signing.

Sources

Written by Kaz, an independent publisher.
Corrections: the contact form.