How to move your 401k to Fidelity

To move a 401k to Fidelity, you contact your current plan administrator (usually your employer's benefits department or the plan custodian), request a direct rollover form, and have them send the funds straight to Fidelity. Fidelity then receives the money in a rollover IRA or employer plan in your name. The entire process typically takes two to four weeks, and the money moves without taxes or penalties if it goes directly from one custodian to another.

The key is using a direct rollover, not a check sent to you. If the plan sends you a check, you have 60 days to deposit it yourself, but taxes are withheld automatically and you must make up the difference from your own pocket or face taxes and penalties on the shortfall.

Key Takeaways

  • A direct rollover sends money straight from your current plan to Fidelity without passing through your hands, avoiding taxes and the 60-day deadline.
  • You need your current plan's name, account number, and the contact information for the plan administrator or custodian to request the rollover form.
  • Fidelity will give you rollover instructions and a receiving account number to provide to your current plan administrator.
  • The transfer typically completes in two to four weeks, though some plans take longer; you can track the status by contacting both Fidelity and your old plan.
  • If you receive a check instead of a direct transfer, you must deposit it within 60 days or face income tax and a 10 percent early withdrawal penalty.

Gather your current plan information before contacting Fidelity

Before you reach out to Fidelity, you need details about the 401k you are moving. Find your most recent plan statement or contact your employer's benefits department or HR office. You will need the name of the plan (often something like "ABC Company 401k Plan"), your account number, and the name and phone number of the plan administrator or custodian—the organization that actually holds the money.

If you left your job, the plan custodian information is usually on your last statement or in any paperwork your former employer sent you. If you cannot find it, call your old HR department; they can tell you the custodian's name and how to contact them. Do not wait to gather this—having it ready speeds up the entire process.

Open a rollover IRA or employer plan at Fidelity

Contact Fidelity by phone, online, or in person at a local branch and tell them you want to roll over a 401k. They will ask whether you want to open a rollover IRA (an individual retirement account that holds rolled-over money) or roll into an existing Fidelity IRA or employer plan if you have one. Most people open a rollover IRA because it is straightforward and keeps the money separate from other retirement savings.

Fidelity will walk you through opening the account, which takes about 15 to 30 minutes. You will provide your Social Security number, address, and employment information. Once the account is open, Fidelity gives you a receiving account number and instructions to send to your old plan. This is the information your current plan administrator needs to know where to send the money.

Request a direct rollover from your current plan

Contact your current plan administrator or custodian and ask for a direct rollover form or rollover request form. Tell them you want the money sent directly to Fidelity, not to you. Provide the receiving account number and instructions Fidelity gave you.

The plan administrator will ask you to sign the form, which authorizes them to send the money. Some plans allow you to submit the form online, by mail, or in person; others require a phone call. Ask how long they typically take to process rollovers—some custodians complete them in one week, others take three to four weeks. Get a confirmation number or email so you can track the request.

Monitor the transfer and confirm receipt at Fidelity

After you submit the rollover request, contact your old plan administrator about one week later to confirm they sent the money. Ask for the date it was sent and the amount. Then contact Fidelity and provide them with the same information so they can watch for it on their end.

Most direct rollovers arrive within two to four weeks of being sent. Fidelity will notify you by mail or email once the money is received and deposited into your account. Log into your Fidelity account online to verify the deposit appears. If more than four weeks pass and the money has not arrived, contact both Fidelity and your old plan administrator to find out where it is stuck.

What happens if you receive a check instead

If your plan sends you a check instead of transferring directly to Fidelity, you have 60 days from the date you receive it to deposit it into a rollover IRA or other retirement account. The plan will withhold 20 percent of the amount for federal taxes, so if your balance is $100,000, you receive a check for $80,000 and owe taxes on the $20,000 withheld.

To avoid taxes and penalties, you must deposit the full $100,000 within 60 days—meaning you have to cover the $20,000 withheld from your own money. If you deposit only the $80,000 you received, the $20,000 is treated as a taxable distribution and you owe a 10 percent early withdrawal penalty on top of income tax. The 60-day clock starts the day you receive the check, not the day it was mailed, so open your mail promptly and mark your calendar.

Choosing investments in your Fidelity rollover account

Once the money arrives at Fidelity, it sits in a money market fund or cash sweep account until you decide where to invest it. You can move it into stocks, bonds, mutual funds, or target-date funds—Fidelity offers thousands of options. You are not required to invest it immediately; some people leave it in cash for a few weeks while they decide.

If your old 401k held company stock or specific mutual funds, you can replicate that in Fidelity, or you can choose a different strategy. Fidelity's website has research tools and educational resources to help you understand your options. You can also speak with a Fidelity representative, though they cannot tell you what to invest in—that is your decision to make.

Frequently Asked Questions

Can I roll over a 401k while I still work at the company?

Most plans do not allow rollovers of active accounts while you are employed there. Once you leave the job, you can roll it over. Some plans offer in-service rollovers, which let you move money out while still employed, but this is rare. Check with your plan administrator or HR department to see if your plan allows it.

What if I have multiple old 401ks from different jobs?

You can roll each one into the same Fidelity rollover IRA, or open separate rollover IRAs for each. Combining them into one account is simpler to manage and usually costs less in fees. You will need to request a direct rollover from each plan separately.

Will I owe taxes when I roll over my 401k?

No, not if you use a direct rollover. The money moves tax-free from your old plan to Fidelity. You only owe taxes when you withdraw money from the rollover IRA later, in retirement. If you receive a check and miss the 60-day deadline, you owe income tax and penalties on the amount not deposited.

How long does the whole process take?

From the day you contact Fidelity to the day the money arrives is typically two to four weeks. Some plans are faster (one to two weeks), others slower (four to six weeks). The speed depends on how quickly your old plan processes the request and how the money is transferred.

Can I roll over a 401k to a Fidelity brokerage account instead of an IRA?

No. 401k money must go into an IRA or another employer plan to avoid taxes and penalties. A regular brokerage account does not may have access to as a rollover destination. Fidelity will set up a rollover IRA for this purpose.