Fidelity Rollover: Where To Send Your Investments

When leaving a job or retiring, it's important to take charge of your old 401(k) and consider your options. One option is to roll over your 401(k) into a new employer's plan, or a rollover IRA, which is a retirement account that allows you to move money from your former employer-sponsored plan to an IRA, tax and penalty-free, while keeping your money's tax-deferred status. If you are rolling over your 401(k) into a rollover IRA, you will need to set up your new account, contact your old 401(k) provider, deposit your money into your new account, and then invest your money. If your old 401(k) provider is Fidelity, you can do the entire rollover through NetBenefits. If your old 401(k) is with a different provider, you will need to contact them to start the rollover process and they may require paperwork such as a Letter of Acceptance from Fidelity.

Contact your old 401(k) provider

To roll over your 401(k) to a new account, you'll need to contact your old 401(k) provider. This is the second step in the rollover process.

First, you need to identify your old 401(k) provider. If you're unsure who your provider is, you can find their name on your account statements. If you have trouble finding this information, you can call your former employer.

If your old 401(k) provider is Fidelity, you can do the entire rollover through NetBenefits. No additional paperwork is needed, and the money can be directly transferred.

If your old 401(k) is with a different provider, you'll need to contact them to start the rollover process. You can do this by phone or online. They may require some paperwork, such as a Letter of Acceptance (LOA) from Fidelity, or their own paperwork completed and signed by you or a Fidelity representative. If you have multiple accounts or employers, you may need more than one LOA.

• Is a distribution form required? If so, who needs to sign it?
• Is a Letter of Acceptance required?
• Does my account include company stock?
• Where will you send my distribution check?

Open a new account

If you don't already have a rollover IRA, you'll need to open one so that you can move money from your former employer's plan into this account.

If there are both pre-tax and post-tax contributions in your 401(k), you might need to open a Roth IRA too.

You can open the IRA with a financial institution. Make sure to research fees and expenses when choosing an IRA provider, as these can vary.

Fidelity offers a range of rollover IRA options, including:

• Fidelity rollover IRA: Choose and manage your own investments.
• Fidelity Go rollover IRA: Fidelity chooses and manages your investments.
• Fidelity Personalized Planning & Advice rollover IRA: Fidelity chooses and manages your investments and offers 1-on-1 coaching.

There are no account-opening fees or minimums for Fidelity retail IRA accounts, but expenses charged by investments and other fees may still apply.

If you already have a Fidelity IRA, you can follow these steps to move your old 401(k).

Deposit your money into your Fidelity account

This step only applies if your old 401(k) is with a different provider. You can choose to have the money sent directly to Fidelity to deposit into your account, or you can deposit it yourself. In both cases, it is important that the check is made payable to Fidelity to ensure the transaction is a direct rollover. A direct rollover avoids taxes being withheld from your rollover amount.

The check should be made payable to Fidelity Management Trust Company (or FMTC), FBO [your name] and does not need to be endorsed. Ask your former plan administrator to include your IRA account number on the check.

If you choose to have the check sent to you, you must deposit the money into your IRA within 60 days of receiving the check to avoid income taxes and a possible early withdrawal penalty.

You can use the Fidelity Investments app for your mobile check deposit. You can also bring the check to a Fidelity Investor Center.

If you have shares of company stock included in your old 401(k), call 800-343-3548 to speak with a Fidelity rollover specialist to discuss how to include them in your rollover.

Invest your money

Once you've set up your new account and deposited your money into your Fidelity account, you need to invest it. This is a critical step—investing is how your money has the potential to grow over time.

You can choose to manage your own investments or pay a fee for a managed account service. Managed account services can give you peace of mind, as a team of experts will keep a close eye on the markets and the investments in your account every day.

If you choose to manage your own investments, you can use Fidelity's free planning tools to manage your portfolio.

If you opt for a rollover IRA, your rollover money will sit in cash, so you'll need to take an additional step to get invested.

If you are rolling over an old 401(k) that has both pre-tax and after-tax money, you will need to select the right IRA for your needs. A Traditional (or Rollover) IRA is typically used for pre-tax assets because savings will stay invested on a tax-deferred basis, and you won't owe any taxes on the rollover transaction itself. However, if you roll pre-tax assets into a Roth IRA, you will owe taxes on those funds.

If you are unsure about the best option for your needs, it is recommended that you consult a financial professional.

Contact a Fidelity rollover specialist

If you need to speak with a Fidelity rollover specialist, you can call 800-343-3548.

Fidelity rollover specialists can help with anything from understanding the options for your old 401(k) to guiding you through each step of the rollover process. If you have questions or if you have shares of company stock, you can call the number above to speak with a specialist. You can also request to have a Fidelity rollover specialist join you when you call your former provider.

If you are looking to transfer an IRA, like a traditional or Roth IRA, to Fidelity, you can do so online. If you don't already have an IRA, you'll need to open one so that you can move money from your former employer's plan into this account. If there are both pre-tax and post-tax contributions in your 401(k), you might need to open a Roth IRA as well.

If your old 401(k) provider is Fidelity, you can do the entire rollover through NetBenefits®. You won't need any additional paperwork, and the money can be directly transferred. If your old 401(k) is with a different provider, you'll need to contact them to start the rollover process. They may require some paperwork, such as a Letter of Acceptance (LOA) from Fidelity, or their own paperwork completed and signed by you or a Fidelity representative.

Frequently asked questions