…(read more)

LEARN MORE ABOUT: IRA Accounts

TRANSFER IRA TO GOLD: Gold IRA Account

TRANSFER IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

How to Rollover a Fidelity 401k into an IRA

If you have a 401k account with Fidelity and are considering moving your retirement savings into an IRA (Individual retirement account), you’re in the right place. This article will guide you through the process of rolling over your Fidelity 401k into an IRA.

1. Understand the benefits of rolling over your 401k: Rollovers allow you to maintain control over your retirement savings while providing flexibility in investment options. By converting your 401k into an IRA, you gain access to a wider range of investment opportunities. Additionally, an IRA offers tax advantages, potential for better returns, and the ability to consolidate your retirement funds in one place.

2. Evaluate your eligibility: Check if your Fidelity 401k is eligible for rollover. Most employer-sponsored 401k plans allow rollovers; however, there might be certain restrictions or penalties associated. Before initiating the process, it’s crucial to understand your plan’s terms and conditions and consult with a financial advisor if needed.

3. Research and choose the IRA provider: Fidelity can assist you in setting up an IRA to roll over your 401k. However, it’s recommended to research different providers to compare fees, investment options, customer service, and overall reputation. Take your time to select an IRA provider that aligns with your investment goals.

4. Open an IRA account: Once you’ve chosen an IRA provider, open an account with them. This can typically be done online or by contacting their customer service. You’ll need to provide personal information, such as your social security number and employment details.

5. Decide between a direct rollover or indirect rollover: With a direct rollover, your Fidelity 401k funds are transferred directly to your new IRA account without passing through your hands. This is the most hassle-free method and avoids any tax implications. On the other hand, an indirect rollover involves you receiving a distribution check from your Fidelity 401k and then depositing it into your new IRA account within 60 days. Keep in mind that if you choose the indirect rollover, there will be mandatory tax withholdings, and you’ll be responsible for depositing the full amount into the new IRA account to avoid penalties.

6. Initiate the rollover: Contact Fidelity to request a 401k rollover distribution form. Complete the form with the required information, such as your new IRA account details and the type of rollover you prefer (direct or indirect). Review the form carefully before submitting it to Fidelity.

7. Monitor the rollover process: Stay in touch with Fidelity and your new IRA provider to track the status of your rollover. Ensure that the funds from your 401k are promptly transferred to your new IRA account. It’s wise to keep records of all communications and transaction details for future reference.

8. Assess and manage your new IRA: Once the rollover is complete, you’ll have access to your new IRA account. Take the time to review and understand the investment options available. Depending on your risk tolerance and retirement goals, make informed decisions about allocating your funds.

9. Consult professionals if needed: If you’re uncertain about the process or have complex financial situations, consider seeking advice from tax professionals, financial advisors, or fiduciary experts. They can guide you through the specifics and help you make the best choices suited to your individual circumstances.

Remember, rolling over your Fidelity 401k into an IRA offers you an opportunity to optimize your retirement savings and take control of your investments. Take necessary precautions, be aware of any tax implications, and make well-informed decisions to secure a better financial future.