How Do You Manage a Fidelity 401K Rollover to an IRA?


Quick Answer

A Fidelity 401K rollover to an IRA allows individuals to maintain the tax-deferred status of their retirement plans while consolidating their retirement assets into one easy-to-manage account. Traditional IRA rollover management centers around stocks, bonds, FDIC-insured CDs, ETFs and mutual fund investments. The U.S. federal government prohibits IRAs from holding collectibles, real estate, currencies and life insurance.

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Full Answer

A Fidelity rollover IRA is only suitable if the associated fees, withdrawal penalties and Fidelity investments linked to the account make sense for the individual’s financial situation. If a Fidelity rollover IRA is chosen, the precise investment strategy varies based on the individual’s financial state and risk aversion.

A Fidelity 401(K) rollover to an IRA is best-suited for individuals who recently changed jobs or retired and have savings left over in a former employer’s workplace savings plan. Individuals can choose to work one-on-one with a Fidelity rollover specialist or opt to use Fidelity’s research and tools to make the best investment choices on their own.

Suitable long-term Fidelity Rollover IRAs include a diverse portfolio of stocks, bonds, mutual funds, FDIC-insured CDs and ETFs. Common strategies include low-risk and steady investment choices to secure steady yearly growth.

Fidelity rollover IRAs come with a 10 percent early withdrawal penalty for withdrawals taken prior to age 59.5 and minimum required distributions starting at age 70.5. The accounts do not possess any opening or annual maintenance fees.

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