Do you have an old 401(k) plan that you want to roll over into a new account? If so, it's important to understand your rollover options. This will help you choose the best one for your financial goals.
Fidelity offers a variety of rollover options for their 401k plans. Each with its benefits and considerations. Knowing these options can help you make an informed decision when it comes to managing your retirement savings.
In this article, we will discuss the different fidelity rollover options and how they can benefit you. Read on to learn more.
401(k) to IRA Rollover
One of the most common options for rolling over your 401(k) plan is to transfer it into an Individual Retirement Account (IRA). This option allows you to continue growing your retirement savings. It allows you to gain more control and flexibility over your investments.
IRAs typically offer a wider range of investment options than 401(k) plans. This allows you to diversify your portfolio and potentially earn higher returns.
Additionally, IRAs have lower fees compared to some employer-sponsored retirement plans. This can help maximize your savings over time.
Fidelity Rollover IRA
If you want to keep your retirement savings with Fidelity, you can choose their Rollover IRA option. This allows you to transfer your 401(k) directly into an IRA with Fidelity.
The advantage of this option is that there are no immediate tax consequences or penalties for early withdrawal. You can also continue investing through Fidelity's wide range of investment options.
Additionally, having all your retirement savings in one place can make it easier to manage. It also allows you to track your progress towards your retirement goals.
Roth Conversion IRA
If you have a traditional 401(k) plan, you may also consider converting it into a Roth IRA. This allows you to pay taxes on the converted amount now, but all future withdrawals will be tax-free. This can be beneficial if you expect your tax rate to be higher in retirement.
Fidelity offers a seamless process for converting your traditional 401(k) into a Roth IRA. They also provide tools and resources. This is to help you determine if this option is right for you.
401(k) to Fidelity Managed Account
Another rollover option is to transfer your 401(k) into a Fidelity-managed account. This allows you to have a team of professionals manage your investments for you. They will consider your goals and risk tolerance to create a personalized investment strategy.
This option can be beneficial if you prefer a hands-off approach to managing different types of investments on your own. However, it's important to note that this option may come with higher fees compared to self-managed options.
Fidelity Self-Directed Brokerage Option
If you want to have more control over your investments, you may consider the self-directed brokerage option. This allows you to transfer your 401(k) into a brokerage account with Fidelity.
You can then choose from a wide range of Fidelity investment options and manage them yourself. This option is best for those who are comfortable making their own investment decisions.
Fidelity Rollover: Taking Control Of Your Financial Future
Before making any decision, it's important to consider your options and how they align with your financial goals. Take the time to research each option and consult with a financial advisor if needed.
Remember, fidelity rollover options can help you make the most of your retirement savings. So choose wisely and take control of your financial future.
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Understanding Fidelity Rollover Options for Your 401k Plan