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.Continue Reading
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.Learn more about Financial Planning