How to move your 401(k) to Fidelity

You can move a 401(k) from a former employer to a Fidelity IRA through a direct rollover, which means the money moves from your old plan administrator straight to Fidelity without you touching it. This is the simplest route and avoids tax withholding. You can also do an indirect rollover, where you receive a check and deposit it yourself within 60 days, though this carries tax and penalty risk if you miss the deadline.

The process takes roughly two to four weeks from start to finish. You'll need your old plan's account number, the plan administrator's contact information, and a Fidelity IRA account already open (or you can open one during the rollover request). Your old plan will send the funds directly to Fidelity, and Fidelity will deposit them into the IRA you designate.

You cannot roll over an active 401(k) from your current employer—only from a plan you've left. If you still work there, you may be able to leave the money in the old plan, roll it to your new employer's plan if one exists, or wait until you leave to roll it over.

Key Takeaways

  • A direct rollover sends money straight from your old plan to Fidelity without tax withholding, and is the safest method.
  • You must initiate the rollover through Fidelity, not your old employer, and you'll need your old plan's account number and administrator contact details.
  • The money must arrive at Fidelity within 60 days of you receiving it (for indirect rollovers), or it becomes taxable income and subject to penalties.
  • You can only roll over a 401(k) from an employer you no longer work for; active plans require you to leave the job first or use other options.

Starting a rollover through Fidelity

Log into your Fidelity account online or call Fidelity's rollover team at 1-800-343-3548. Tell them you want to roll over a 401(k) and have your old plan's name, your account number with that plan, and the plan administrator's phone number ready. Fidelity will ask whether you want a direct rollover (recommended) or an indirect one.

If you choose direct, Fidelity generates a rollover request form and sends it to your old plan administrator on your behalf. You don't need to do anything else except wait. If you choose indirect, Fidelity will tell you how to request a check from your old plan, and you'll be responsible for depositing it into your Fidelity IRA within 60 days.

Fidelity will also confirm which IRA account the funds should land in. If you don't have a Fidelity IRA yet, you can open one during this call or online before you start the rollover.

What your old plan administrator needs to do

Once Fidelity sends the rollover request, your old plan administrator has a window—usually 10 to 30 days depending on the plan—to process it and send the funds. They will mail a check directly to Fidelity's receiving account, not to you. This is why a direct rollover is safer: the money never passes through your hands, so there's no risk of missing the 60-day deposit deadline.

Some plan administrators are slow. If you don't see the money in your Fidelity account within four weeks, contact Fidelity and ask them to follow up with the old plan. Fidelity can usually track the status and push for faster processing.

Tax withholding and what happens to your money

With a direct rollover, no taxes are withheld. The full balance moves to Fidelity and remains tax-deferred in your IRA. You don't owe taxes until you withdraw the money in retirement.

With an indirect rollover, your old plan is required to withhold 20 percent of the balance for federal taxes before sending you a check. If your 401(k) balance is $50,000, you'll receive $40,000 and the plan sends $10,000 to the IRS. To avoid owing taxes on that $10,000, you must deposit the full $50,000 into your Fidelity IRA within 60 days—meaning you have to cover the $10,000 withholding out of your own pocket. If you don't, the $10,000 is treated as a distribution, taxed as income, and subject to a 10 percent early withdrawal penalty if you're under 59½.

This is why financial advisors recommend direct rollovers whenever possible.

Timing and what to expect

The entire process typically takes two to four weeks. Here's the usual timeline: you contact Fidelity (day 1), Fidelity sends the rollover request to your old plan (day 2–3), your old plan processes it (day 5–20), the check is mailed to Fidelity (day 21–25), and Fidelity deposits it into your account (day 26–28). Delays happen if your old plan is slow or if there are address or account number errors.

Once the money lands in your Fidelity IRA, it's invested according to whatever investment choices you make. If you don't choose an investment, Fidelity may place it in a money market fund temporarily, which earns very little interest. You should decide how to invest the money before or shortly after the rollover completes.

Common problems and how to fix them

The most common issue is a mismatch between the name on your old plan and the name on your Fidelity account. If you've married, divorced, or changed your name, make sure both accounts use the same legal name. If they don't match, the old plan will reject the rollover request. Contact Fidelity to update your account name before you start.

Another frequent problem is an incorrect account number or plan administrator contact information. Double-check your old plan statement for the exact account number and administrator name. A typo can delay the rollover by weeks.

If your old plan requires you to sign a form in person or notarize it, ask Fidelity whether they can handle that, or whether you need to contact the plan directly. Some plans are stricter than others.

Rollovers from employer plans with loans

If you have an outstanding loan against your 401(k), you cannot roll over the loan itself. You have two choices: repay the loan before the rollover, or leave the loan with your old plan and roll over only the remaining balance. If you leave the job and don't repay the loan, it's treated as a distribution and becomes taxable income plus a 10 percent penalty if you're under 59½.

Talk to your old plan administrator about the loan status before you start the rollover. Fidelity can help you understand your options, but the plan controls the loan rules.

Frequently Asked Questions

Can I roll over a 401(k) while I'm still employed?

No, not from your current employer's plan. You can only roll over a 401(k) after you leave that job. If you've left a previous employer, you can roll that old 401(k) to Fidelity anytime. Some employers offer an in-service rollover, which lets you move money while still employed, but this is rare and your plan administrator would have told you if it's available.

What if my old plan administrator won't send the money to Fidelity?

This is uncommon but happens with small or outdated plans. Ask the plan administrator in writing why they're refusing. If they claim Fidelity isn't an approved recipient, that's usually false—Fidelity is a major IRA custodian and accepts rollovers from virtually all plans. Ask Fidelity to contact the plan on your behalf; Fidelity has experience pushing back on these objections.

Do I have to roll over the entire 401(k) balance?

No. You can roll over part of the balance and leave the rest in your old plan, or take a distribution of part of it. However, most people roll over everything to consolidate accounts and simplify management. Ask your old plan whether partial rollovers are allowed, as some plans don't permit them.

What if I miss the 60-day deadline for an indirect rollover?

The money becomes a taxable distribution. You'll owe federal income tax on the full amount, plus a 10 percent early withdrawal penalty if you're under 59½. The IRS can waive the deadline in rare cases (serious illness, natural disaster, plan administrator error), but you'd need to file Form 8329 with your tax return and explain the delay. It's much easier to do a direct rollover and avoid this risk entirely.

Will rolling over my 401(k) affect my current employer's benefits?

No. Rolling over an old 401(k) to a Fidelity IRA has no effect on your current job, health insurance, or any other benefits. It only moves money from a plan you've already left.