Consolidate your retirement plans.


If you’ve left money behind in old workplace savings plans or opened up multiple IRAs, now’s a good time to consider consolidating them and benefit from:

  • One view of your retirement resources
  • Greater access to Fidelity’s money management expertise
  • Easier account management

Here are a few ways to consolidate your accounts:
1. Roll your savings into your Fidelity workplace plan and benefit from:

  • One account and statement for your retirement savings
  • A set of investment choices pre-screened by your employer
  • Plan fees negotiated by your employer
  • Ability to take loans
  • Professional management through Portfolio Advisory Services at Work (availability may vary depending on your plan.)
  • Federal bankruptcy protection from creditors
  • An opportunity to defer required distributions if over 70½ and still working


A few exceptions to consider

If your current plan offers some specific advantages, like housing allowances, creditor protection, or custom fund options, contact Fidelity for assistance evaluating your specific situation. And if you hold company stock in your existing workplace plan, you are strongly encouraged to consult your legal or tax professional before taking any action.

2. Roll your savings into an IRA1:

  • Control of your retirement assets as part of your personal portfolio
  • A wide variety of investment choices including a full range of funds, stocks, bonds, and FDIC2 insured CDs
  • Comprehensive guidance for your retirement portfolio

3. Leave your money in your former employer’s plan:


  • Continued tax-deferred savings
  • Access to the same investment choices
  • Access to the same managed-money services, if available
  • If you terminate employment after age 55, penalty-free withdrawals may be available
  • Take advantage of special tax treatment for appreciated company stock (net unrealized appreciation)


Additional considerations

If you do keep your money in your former employer's plan, keep in mind that beneficiary, investment, and withdrawal options may be limited. You may also find it cumbersome to manage different accounts in different places. Generally, there are no additional fees charged for leaving your money in your former plan; however, any fees that normally occur in your plan (such as a quarterly maintenance fee) may still apply. Check your plan details for more information on potential fees.

4. Take your money in cash:

  • Possible early-withdrawal penalty, as well as state and federal income taxes
  • Immediate access to your savings, but less money for living in retirement (due to impact of taxes/possible penalty fee)


Additional considerations

If you are younger than 59½, you will be subject to a 10% early-withdrawal penalty. When you cash out your workplace savings plan at any age, you will be subject to 20% federal income tax withholding, and may owe more when you file your taxes. Depending on the funds held in your old account, certain redemption fees may apply. An early distribution penalty will not apply if you left this employer in or after the year in which you reached age 55.

Be sure to consider all your available options and the applicable fees and features of each before moving your retirement assets.

 

1 A number of financial service providers offer IRAs. You should choose the financial service provider that best meets your personal needs and investment objectives.

2 For the purposes of FDIC insurance, all depository assets of the account holder at the institution that issued the CD will generally be counted toward the applicable aggregate limit, for each applicable category of account. Additional information can be found on the FDIC website.



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NEED HELP?

Call 800-835-5095 to talk with a Fidelity Representative.