Rollover IRA Simplify your retirement savings

When leaving a job or retiring, take charge of your old 401(k) with a rollover IRA, letting you use your money today—while still building for tomorrow.


What is a rollover IRA?

A rollover IRA is a retirement account that allows you to move money from your former employer-sponsored plan to an IRA—tax and penalty-free1—while keeping your money's tax-deferred status.


Already have a Fidelity IRA?

Follow these steps to move your old 401(k)

Questions?

800-343-3548 or Chat with a representative

Benefits of a rollover IRA


Tax savings

Opportunity to build: You won't pay taxes on potential growth until you make withdrawals—and can still make contributions to the account.


Access to your money

Big life events: Withdraw penalty-free for certain expenses, such as a first-time home purchase, birth, or college expenses.2


Investing options

Flexibility: You can generally choose from a wider range of investments than you can in an employer's plan.


Why you may want to consider other options

There are several choices for what to do with your old 401(k) when you retire or change jobs. Learn more

Pick the Fidelity rollover IRA that fits you best

As hands-on or hands-off as you're looking for, we've got you covered when it comes to choosing a Rollover IRA.

Select your own investments

Manage your own portfolio using our free planning tools.3


  • No account-opening fees or minimums4—invest with as little as $1
  • Choose from a broad range of investment options, including those designed for retirement such as target date funds

Investments personalized for you

Fidelity Go® is one of several managed account services that can help you with both financial planning and investing.


  • No minimum to open an account—invest with as little as $105
  • $0 advisory fee for balances under $25K (0.35% for balances of $25K+)5
  • Designed for investing goals of 3+ years

Other ways to invest with our help

Explore the many ways you can invest with Fidelity (PDF)


Work with a Fidelity advisor

Consider Fidelity® Wealth Services for your planning and investment management needs. Minimum investment is $50,000 for access to a team of advisors or $500,000 for a dedicated advisor.6


Don't forget these important next steps


Invest

Investing gives your money the potential to grow—so don't overlook this critical step. (If you chose Fidelity Go®, we'll do the investing for you.)


View investment options


Review

As your needs change, make sure your investments still make sense for your situation.


If you are a Fidelity Wealth Services customer—or have a Fidelity Go® with at least $25,000—set up an appointment to review your full financial picture. We're here for you.

FAQs

  • Can I roll over assets into my Traditional IRA?
    Yes, you can but it's important to be aware that if you do roll pre-tax 401(k) funds into a traditional IRA, you may not be able to roll those funds back into an employer-sponsored retirement plan. Contact your tax advisor for more information.
  • Will I owe taxes on my rollover?

    Generally, there are no tax implications if you complete a direct rollover and the assets go directly from your employer-sponsored plan into a Rollover or Traditional IRA via a trustee-to-trustee transfer.

    However, if you choose to convert some or all of your savings in your employer-sponsored retirement plan directly to a Roth IRA, the conversion would be subject to ordinary income tax. Contact your tax advisor for more information.

    If you withdraw the assets from your former employer‑sponsored retirement plan, the check is made payable to you, and taxes are withheld, you may still be able to complete a 60-day rollover. Within 60 days of receiving the distribution check, you must deposit the money into a Rollover IRA to avoid current income taxes.

    If taxes were withheld from the distribution, you would have to replace that amount if you want to roll over your entire distribution to your Fidelity IRA. If you hold the assets for more than 60 days, your distribution will be subject to current income taxes and a 10% early withdrawal penalty if you are under age 59½.

  • What tax forms will I receive for my rollover IRA?

    If you rolled over your employer-sponsored plan account directly into a Fidelity IRA, you will receive Form 1099-R from the trustee of the plan showing the distribution, as well as Form 5498 in May from Fidelity showing the IRA rollover. Form 5498 summarizes your IRA contributions, rollovers, and fair market value. This form does not need to be filed with your taxes. For help with this tax form, see the IRS Instructions for Form 5498 (PDF).

  • Can I move an existing IRA from another institution to Fidelity?
    Yes, visit IRA Transfers for a quick overview of the online process.
  • Can I roll my money into a Roth IRA?
    Most people are eligible to convert their 401(k) to a Roth IRA; however, it is important to be aware of the potential tax implications. If you have money in a designated Roth 401(k), you can roll it directly into a Roth IRA without incurring any tax penalties. However, if the 401(k) funds are pre-tax, then converting to a Roth IRA will be a taxable event. Nevertheless, a conversion has the potential to help reduce future taxes and maximize retirement savings. There are several factors to consider when deciding if converting to a Roth IRA may be right for you. Call Fidelity for more information about converting your savings to a Roth IRA.
  • Can I roll my money into a small business retirement plan?
    If you're self-employed, then yes, you may be able to roll over your 401(k) into your own small business retirement plan, such as a SEP IRA or a self-employed 401(k). Learn more about self-employed rollover options.
  • How do I know if I am eligible for a rollover?
    Generally there must be a distributable event. The most common eligibility event is when an individual leaves the service of their employer. Other reasons may include attainment of age 59½, death, or disability. Please contact your plan to determine whether or not you are eligible for a distribution and, therefore, a rollover.
  • Can I add more money to my IRA later?
    Yes, you can add money to your IRA with either annual contributions or you can consolidate other former employer-sponsored retirement plan or IRA assets. Some people choose to make their annual contributions to their IRA so that they only have to keep track of one account. This may be right for you if you have no desire to roll these assets back to a qualified retirement plan at a future employer. Assets can be commingled and still be eligible to roll into another employer plan in the future; however, it is at the discretion of the receiving plan to determine what type of assets can be rolled over.
  • Can I leave my former employer-sponsored retirement plan assets in my current plan indefinitely?

    No, generally you must begin to take withdrawals, known as required minimum distributions (RMDs), from all your retirement accounts (excluding Roth IRAs) no later than April 1st of the year following the year in which you turn age 73. If you wait until April 1st, you will then be required to take your second distribution by the end of that year.

    Check with your plan administrator to see if there are any other rules that may require the money to be taken out prior to you turning age 73. For example, many plans require that accounts smaller than $5,000 be cashed out or rolled over. Learn more about RMDs.

  • Can I leave a portion of my 401(k) in an old employer's plan and roll the remaining amount to an IRA?
    Plans have different rules and requirements for 401(k) assets. Some 401(k) plans offer equal flexibility to both current and former employees while others place restrictions on withdrawal types and frequency. For example, some plans may allow partial withdrawals while others may require that you either leave all the funds in the plan or perform a full rollover or cash payout. Please check the plan's rules for more information.
  • Can I roll over my existing 401(k) assets into an IRA while I'm still working?
    Generally, you cannot roll over funds from your active 401(k), but there are some exceptions. For example, some plans allow for "in service" withdrawals at age 59½. If you are under age 59½, or if your plan does not have that withdrawal provision, you may be able to withdraw (or roll over) specific types of contributions. For example, if in the past you rolled money directly from an old 401(k) into your current plan, you may be able to move that money out of your plan into an IRA.
  • Can I roll over an old 401(k) that has both pre-tax and after-tax money in it?
    You can, but it is important to select the right IRA for your needs. A Traditional (or Rollover) IRA is typically used for pre-tax assets because savings will stay invested on a tax-deferred basis and you won't owe any taxes on the rollover transaction itself. However, if you roll pre-tax assets into a Roth IRA, you will owe taxes on those funds. For after-tax assets, your options are a little more varied. You can roll the funds into a Roth IRA tax-free. You also have the option of taking the funds in cash or rolling them into an IRA along with your pre-tax savings. If you choose the latter option, it is important that you keep track of the after-tax amount so that when you start taking distributions, you'll know which funds have already been taxed. IRS Form 8606 is designed to help you do just this. Before making a decision, please consult with a tax advisor about your specific situation.
  • What if I hold appreciated employer stock in my plan?
    If you stay in your old workplace plan, special tax treatment may be available for your company stock (Net Unrealized Appreciation). Consult your tax advisor for more information.

Additional resources


Considerations for an old 401(k)


Here are 4 options for a 401(k) with a former employer. This article explains how to move your old 401(k) into a rollover IRA. Learn more


401(k) rollover considerations


Key questions about your 'old' 401(k). Consider cost, investments, services, and convenience. Learn more

24/7 customer support

Our rollover specialists can help with anything from understanding the options for your old 401(k) to guiding you through each step of the rollover process.

Questions?

800-343-3548