Fidelity 401k Rollover to Another Company: A Complete Guide

Are you contemplating a job change or seeking better investment options for your retirement savings? Managing your 401(k) can be a daunting task, but Fidelity Investments has a solution: their 401(k) Rollover Service. In this blog post, we’ll explore how Fidelity’s 401(k) Rollover Service can help you take control of your financial future and ensure a smooth transition for your retirement savings, specifically through a Fidelity 401k rollover to another company.

We will discuss the process of rolling over a Fidelity 401(k) to another company, the target audience for this service, and the user interface and tools provided by Fidelity. Additionally, we will examine the durability and real-life performance of their rollover service, along with tax reporting requirements and the overall value of the service for your retirement planning.

I’ve personally done a rollover, and this is what you need to know ahead of making this transaction.

Key Takeaways

  • Fidelity’s 401(k) Rollover Service offers assistance to help transfer funds and access a greater variety of investment options.
  • Customers can benefit from lower fees, increased investment opportunities, user-friendly platform with low-cost investments and reliable management resources.
  • Fidelity provides 1099/5498 forms for tax reporting requirements as well as services to roll over funds, consolidate accounts & invest in Roth or traditional IRAs.

Introduction to Fidelity’s 401(k) Rollover Service

Fidelity 401k Rollover

Consolidating your retirement savings by transferring a Fidelity 401(k) to another company puts you, rather than your former employer, in control of your finances. The benefits of a 401(k) rollover include managing income taxes efficiently and providing a greater variety of investment choices through Fidelity Investments.

Fidelity’s 401(k) Rollover Service simplifies the rollover process, making it easier to transfer your 401(k) to an individual retirement account (IRA) or another employer-sponsored retirement plan. Converting your Fidelity 401(k) to an IRA or transferring it into a new employer’s 401(k) account are options that can help you circumvent paying income taxes on the transferred amount.

You will need to verify your identity to make a direct rollover request. Additionally, you will need to provide information such as the IRA account number, name of the plan provider, and the mailing address of the new plan. Transferring the funds directly to the new account allows you to avoid potential taxation complications.

Who Can Benefit from Fidelity’s 401(k) Rollover?

rolling over your 401k at fidelity

Fidelity’s 401(k) Rollover Service is beneficial for individuals changing jobs or seeking more favorable investment options. Rolling over a Fidelity 401(k) into an IRA allows you to maintain oversight of your savings and provides increased investment opportunities, such as exchange-traded funds (ETFs), and lower fees.

There are several options when it comes to rolling over an old Fidelity 401(k) account, including:

  • Leaving it with Fidelity
  • Rolling it over into a new employer’s 401(k) account
  • Transferring it into a traditional IRA
  • Transferring it into a Roth IRA
  • Withdrawing the funds

To initiate a 401(k) rollover to another 401(k), you must contact your current plan provider or a representative from your human resources department at your current job.

Initiating Your 401(k) Rollover with Fidelity

fidelity rollover

Initiating the rollover process with Fidelity requires choosing an account type that best fits your needs, such as a Rollover IRA, Traditional IRA, or Roth IRA. Fidelity will automatically generate a rollover IRA for you.

It’s crucial to request a direct rollover when reaching out to Fidelity about a 401(k) rollover to circumvent potential tax issues. You will need to provide your Social Security Number, driver’s license, or other information to verify your identity, as well as details about the new retirement plan where you wish to roll over your 401(k) funds.

Upon receiving the rollover check from Fidelity, it is recommended to deposit the check within 60 days. If you do not receive the check or misplace it, contact Fidelity to request a new one.

Navigating Fidelity’s User Interface

Fidelity’s user interface for 401(k) rollovers enables users to:

  • Request rollovers online through their NetBenefits account
  • Consolidate their retirement savings by transferring their 401(k) plan to a Fidelity IRA account
  • View account balances, positions, and place trades with ease

The platform is highly user-friendly and makes it easier for users to manage their retirement savings.

In addition to its user-friendly design, the platform offers a wide range of low-cost investment options and provides an automated investment management experience. The tools available on Fidelity’s platform for managing 401(k) rollovers include Rollover IRA, Investment Management, and Planning & Guidance.

For any questions or concerns during the rollover process, Fidelity offers customer support through phone support, online chat, and a virtual assistant.

Durability of Fidelity’s 401(k) Rollover Service

Fidelity’s 401(k) Rollover Service has earned a reputation for reliability, user-friendliness, efficient management, and the provision of educational resources, as noted by customers. However, potential issues and errors may arise during the rollover process, such as incorrectly specifying the amount or classifying the rollover as a distribution.

Ensuring accuracy when executing the rollover and promptly reporting any unauthorized account activity, errors, or discrepancies to Fidelity can help avoid having to pay income taxes and other potential issues. If you encounter any challenges or difficulties during the rollover process, it is recommended to contact Fidelity directly for specific inquiries and to assess their responsiveness based on your individual circumstances.

Real-life Performance of Fidelity’s Rollover Service

 

Customers have generally expressed satisfaction with Fidelity’s 401(k) Rollover Service, praising its user-friendliness, efficient management, and educational resources. However, some have voiced dissatisfaction with the customer service and accuracy of information provided by representatives.

Success stories shared by customers highlight how Fidelity’s 401(k) Rollover Service has helped them save for retirement, overcome financial challenges, and positively impacted their lives. To learn more about these customer stories, you can visit Fidelity’s website at Customer Stories.

Potential challenges associated with Fidelity’s 401(k) Rollover Service include:

  • Lack of flexibility in retirement withdrawals
  • Potential for errors during the rollover process
  • Limited options for in-service withdrawals or hardship withdrawals
  • Necessity to navigate the rollover process

Tax Reporting with Fidelity’s Rollover Service

Awareness of tax reporting requirements is crucial when utilizing Fidelity’s 401(k) Rollover Service. In general, rollovers are tax-free, with the exception of pre-tax dollar conversions to Roth, or after-tax, savings.

To report a direct rollover on your taxes, you must anticipate receiving a 1099-R form from your 401(k) plan provider and a 5498 form from Fidelity if your rollover was a direct one. These forms are necessary for reporting a direct rollover to a gold IRA as well.

The Value of Fidelity’s 401(k) Rollover Service

Fidelity’s 401(k) Rollover Service offers the following long-term benefits:

  • Ease and flexibility in transferring previous 401(k) or workplace retirement accounts when transitioning or leaving a job
  • Financial consolidation
  • Enhanced control over investments
  • Enhanced investment choices
  • Expert guidance to support retirement planning

The fees associated with the service may include asset-based fees, administration fees, and shareholder services fees, but the exact fees may vary depending on the investment options selected and the specific plan.

Fidelity’s additional services include:

  • Option to roll over funds from an active 401(k) plan into a Fidelity account
  • Capability to consolidate retirement accounts, including mutual funds, into one place
  • Professionally managed solutions for rollover, Roth, and traditional IRAs

These additional services add value to the overall service.

Summary

In conclusion, Fidelity’s 401(k) Rollover Service offers a comprehensive solution for individuals looking to take control of their retirement savings when changing jobs or seeking better investment options. With its user-friendly platform, expert guidance, and additional services, Fidelity’s 401(k) Rollover Service can help you consolidate and manage your retirement savings efficiently.

Don’t let your financial future be dictated by your past employment. Take charge of your retirement planning and consider rolling over your 401(k) with Fidelity’s 401(k) Rollover Service today.

Frequently Asked Questions

Can Fidelity 401k be transferred to another company?

Yes, you can transfer your Fidelity 401(k) to another company depending on the new employer’s plan and options available. Your options include keeping it with your old employer’s plan, rolling over the money into an IRA, rolling over into a new employer’s plan, or cashing out.

How do I roll over my 401k from one company to another?

To roll over your 401(k) from one company to another, you should contact your new employer’s plan administrator and request a direct rollover or trustee-to-trustee transfer. This will allow you to transfer funds without incurring taxes or penalties and select the investment options in your new plan.

What is ira rollover?

IRA rollovers allow you to transfer funds from a retirement account like a 401(k) or other eligible plan into an IRA. The money stays tax-deferred and protected from early withdrawal penalties, so it’s a smart way to consolidate accounts for retirement planning.

What are the tax reporting requirements for Fidelity’s 401(k) Rollover Service?

You must report the 401(k) rollover on your taxes, with 1099-R form from the plan provider and 5498 from Fidelity.

Are there any fees associated with Fidelity’s 401(k) Rollover Service?

Yes, there are fees associated with Fidelity’s 401(k) Rollover Service. These fees may include asset-based fees, administration fees, and shareholder services fees.

Tim Schmidt

About 

Tim Schmidt is an Entrepreneur who has covered retirement investing since 2012. He started IRA Investing to share his expertise in using his Self-Directed IRA for alternative investments. His views on retirement investing have been highlighted in USA Today, Business Insider, Tech Times, and more. He invested with Goldco.