Fidelity's Role In Your 401(K): A Comprehensive Overview

Fidelity is a financial firm that manages 401(k) accounts for employers. Once you contribute money to your 401(k), you must then invest the money in stock or bond funds, otherwise it will remain as cash. Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice.

Fidelity does not provide legal or tax advice

Fidelity's Planning and Guidance center allows you to create and monitor multiple independent financial goals. While there is no fee to generate a plan, expenses charged by your investments and other fees associated with trading or transacting in your account would still apply. You are responsible for determining whether, and how, to implement any financial planning considerations presented, including asset allocation suggestions, and for paying applicable fees. Financial planning does not constitute an offer to sell, a solicitation of any offer to buy, or a recommendation of any security by Fidelity Investments or any third-party.

Fidelity offers financial planning

Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.

Fidelity's Planning and Guidance center allows you to create and monitor multiple independent financial goals. While there is no fee to generate a plan, expenses charged by your investments and other fees associated with trading or transacting in your account would still apply. You are responsible for determining whether, and how, to implement any financial planning considerations presented, including asset allocation suggestions, and for paying applicable fees. Financial planning does not constitute an offer to sell, a solicitation of any offer to buy, or a recommendation of any security by Fidelity Investments or any third-party.

Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.

Generally, there are no tax implications if you complete a direct rollover and the assets go directly from your employer-sponsored plan into a Rollover, Traditional or Roth IRA (as applicable) via a trustee-to-trustee transfer.

401(k) managed by a separate financial firm

A 401(k) is a financial account that you sign up for through your employer. Once you contribute money to your 401(k), you must then invest the money in stock or bond funds, otherwise, it will remain as cash. Your 401(k) is typically managed by a separate financial firm, such as Vanguard, Fidelity, Principal, Schwab, etc. This is the company you will receive important information and disclosures from about your account and investments. If you leave your employer, in most cases, your account will remain at the financial firm that originally managed it, unless you roll it over to a new company (or have contributed little to it).

Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation. Fidelity's Planning and Guidance center allows you to create and monitor multiple independent financial goals. While there is no fee to generate a plan, expenses charged by your investments and other fees associated with trading or transacting in your account would still apply. You are responsible for determining whether, and how, to implement any financial planning considerations presented, including asset allocation suggestions, and for paying applicable fees. Financial planning does not constitute an offer to sell, a solicitation of any offer to buy, or a recommendation of any security by Fidelity Investments or any third-party.

There are no account fees or minimums to open Fidelity retail IRA accounts. IRAs can be opened with brokerage firms like Charles Schwab or Fidelity and don’t require employer sponsorship. Be sure to consider all your available options and the applicable fees and features of each before moving your retirement assets. Target Date Funds are an asset mix of stocks, bonds and other investments that automatically become more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.

No fees to open Fidelity retail IRA accounts

Fidelity does not charge any fees or minimums to open retail IRA accounts.

IRAs can be opened with brokerage firms like Charles Schwab or Fidelity and don't require an employer sponsor.

Fidelity's Planning and Guidance centre allows you to create and monitor multiple independent financial goals. While there is no fee to generate a plan, expenses charged by your investments and other fees associated with trading or transacting in your account would still apply.

Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.

Generally, there are no tax implications if you complete a direct rollover and the assets go directly from your employer-sponsored plan into a Rollover, Traditional or Roth IRA (as applicable) via a trustee-to-trustee transfer.

Consider all options before moving retirement assets

Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.

Consider all your available options and the applicable fees and features of each before moving your retirement assets. Target Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.

There are no tax implications if you complete a direct rollover and the assets go directly from your employer-sponsored plan into a Rollover, Traditional or Roth IRA (as applicable) via a trustee-to-trustee transfer.

Fidelity's Planning and Guidance center allows you to create and monitor multiple independent financial goals. While there is no fee to generate a plan, expenses charged by your investments and other fees associated with trading or transacting in your account would still apply. You are responsible for determining whether, and how, to implement any financial planning considerations presented, including asset allocation suggestions, and for paying applicable fees. Financial planning does not constitute an offer to sell, a solicitation of any offer to buy, or a recommendation of any security by Fidelity Investments or any third-party.

There are no account fees or minimums to open Fidelity retail IRA accounts.

Once you contribute money to your 401(k), you must then invest the money in stock or bond funds, otherwise it will remain as cash. Like a savings account or individual retirement account (IRA), a 401(k) itself is simply a type of financial account. Once you sign up for your 401(k) through the company you work for, it is typically managed by a separate financial firm, such as Vanguard, Fidelity, Principal, Schwab, etc. This is the company you will receive important information and disclosures from about your account and investments. If you leave your employer, in most cases your account will remain at the financial firm that originally managed it, unless you roll it over to a new company (or have contributed little to it).

Frequently asked questions