To roll over your 401(k) to a Fidelity IRA, you can initiate the process by contacting Fidelity and requesting a rollover form. Fill out the form with details about your current 401(k) and the Fidelity IRA you want to transfer the funds to. Ensure you provide accurate account information to facilitate the transfer. Once Fidelity receives the form, they will reach out to your previous 401(k) provider to initiate the rollover process. Track the progress and follow any instructions provided by Fidelity or your 401(k) provider to complete the transfer. By following these steps, you can smoothly move your 401(k) funds to a Fidelity IRA and continue managing your retirement savings.
Fidelity IRA Eligibility Criteria
Before initiating a 401(k) rollover to a Fidelity IRA, it is essential to ensure eligibility. Fidelity IRAs come in various forms, each with specific requirements:
- Traditional IRA: Open to individuals and requires earned income to contribute. Age limits apply for contributions, but withdrawals may be subject to penalties before age 59 1/2.
- Roth IRA: Contributions are made after-tax, and qualified withdrawals are tax-free. Income limits apply for eligibility.
- SEP IRA: Designed for self-employed individuals and requires business income to contribute.
- SIMPLE IRA: Available to employees of small businesses and requires employer contributions.
In addition to meeting the general IRA eligibility criteria, certain conditions must be met for a successful 401(k) rollover:
- The 401(k) plan must allow rollovers.
- The IRA account must be qualified and in the same name as the 401(k).
- The rollover must be executed directly between the 401(k) plan and the IRA custodian (Fidelity in this case).
| Type of Rollover | Time Limit |
|---|---|
| Direct Rollover | No time limit |
| 60-Day Rollover | Must complete within 60 days |
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Steps for Rolling Over 401k to Fidelity IRA
Rolling over a 401k to a Fidelity IRA is a simple process that can be completed in a few steps.
1. Contact Fidelity
- Call Fidelity at 1-800-544-6666.
- Provide your name, address, and Social Security number.
- A Fidelity representative will help you open an IRA account and provide you with instructions on how to roll over your 401k.
2. Contact your 401k provider
- Call your 401k provider and request a distribution form.
- Complete and return the form to your 401k provider.
3. Deposit the distribution
- The distribution from your 401k will be deposited into your new Fidelity IRA account.
- Fidelity will notify you when the distribution has been received and processed.
| Step | Action |
|---|---|
| 1 | Contact Fidelity |
| 2 | Contact your 401k provider |
| 3 | Deposit the distribution |
Benefits of Rolling Over to Fidelity IRA
Rolling over 401(k) assets to a Fidelity IRA offers numerous benefits, including:
- Increased investment options: Fidelity IRAs provide access to a wider range of investment options compared to 401(k) plans, allowing you to diversify your portfolio.
- Lower fees: Fidelity IRAs often have lower fees compared to 401(k) plans, reducing the impact of investment costs on your returns.
- More control over investments: As the account owner, you have complete control over your IRA investments, making decisions based on your financial goals.
- Easier access to funds: IRAs generally allow you to withdraw funds more easily than 401(k) plans, subject to certain tax implications.
- Continued tax benefits: IRA rollovers maintain the tax-advantaged status of your retirement savings, allowing your investments to grow tax-deferred or tax-free.
Steps to Roll Over 401(k) to Fidelity IRA
- Choose a Fidelity IRA account type: Select the IRA account that best suits your needs, such as Traditional IRA, Roth IRA, or a rollover IRA.
- Contact Fidelity: Open a Fidelity IRA account and provide them with your 401(k) plan details.
- Initiate the rollover: Request a direct rollover from your 401(k) plan to your Fidelity IRA account. This ensures a tax-free transfer of assets.
- Track the transfer: Monitor your Fidelity account to confirm the receipt of the rollover funds.
Timeline for Rolling Over
| Rollover Type | Timeline |
|---|---|
| Direct Rollover | Typically completed within a few business days |
| Indirect Rollover (60-day rollover) | Transfer must be completed within 60 days of receipt of the distribution |
Hey there, savvy saver! You’ve got this 401k rollover thing down pat. Remember, Fidelity is always here to help if you need a little extra guidance. Keep those retirement funds rollin’ and reachin’ for those financial goals. Thanks for reading, and be sure to drop by again soon for more money-wise tips!