A 401(k) plan is a cornerstone of retirement planning for many individuals, and Fidelity is a prominent provider of these plans. As your life circumstances and financial goals evolve, you might find yourself needing to make adjustments to your 401(k) plan. Whether it's to optimize your investments, change your contribution amount, or update your beneficiary, understanding how to navigate Fidelity's platform is crucial. This comprehensive guide will walk you through the process step-by-step.
The Dynamic Nature of Your 401(k)
Your 401(k) isn't a "set it and forget it" account. Life happens! You might get a raise, have a child, decide to retire earlier or later, or simply want to take a more aggressive or conservative approach to your investments. Regularly reviewing and potentially changing your 401(k) plan with Fidelity is a vital part of proactive financial management. It ensures your retirement savings remain aligned with your current situation and future aspirations.
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| How To Change 401k Plan Fidelity |
Step 1: Engage and Log In to Your Fidelity Account
Alright, let's get started! The very first step in making any changes to your Fidelity 401(k) is to access your account online.
1.1 Accessing the Fidelity Website:
Open your preferred web browser and go to the official Fidelity Investments website. You can usually find it by searching "Fidelity Investments" or by typing www.fidelity.com directly into your address bar.
1.2 Logging In Securely: On the Fidelity homepage, locate the "Login" or "Log In" button, typically found in the top right corner. Click on it. You will be prompted to enter your:
Username
Password
Make sure you are on a secure connection and that the website address starts with "https://" before entering your credentials. If you've forgotten your username or password, look for the "Forgot username?" or "Forgot password?" links and follow the recovery steps. It's essential to keep your login information secure to protect your financial data.
Step 2: Navigate to Your 401(k) Account Details
Once you're successfully logged in, you'll land on your Fidelity dashboard, which provides an overview of all your accounts.
2.1 Identifying Your 401(k) Plan: On your dashboard, you'll see a list of your Fidelity accounts. Look for your 401(k) plan. It might be labeled something like "Workplace Savings," "Retirement Plan," or directly "401(k)." Click on the specific 401(k) account you wish to modify.
2.2 Overview of Your 401(k): After selecting your 401(k) account, you'll be taken to a summary page. This page typically displays your current balance, vested balance, rate of return, and a breakdown of your investments. Take a moment to familiarize yourself with this overview.
Tip: Keep your attention on the main thread.
Step 3: Determine the Type of Change You Want to Make
Fidelity's 401(k) platform allows for various types of changes. Your next action will depend on what you intend to adjust. Here are the most common scenarios:
3.1 Changing Investment Elections (Future Contributions): This is about how your future contributions will be invested. You might want to switch from a target-date fund to a more customized portfolio, or adjust your allocation between different asset classes (stocks, bonds, etc.).
3.2 Rebalancing Current Investments (Existing Balance): This involves adjusting the allocation of the money you've already contributed and invested. Over time, some investments may grow more than others, throwing your desired asset allocation off balance. Rebalancing brings it back in line.
3.3 Adjusting Contribution Amount/Percentage: This is about how much money you contribute from each paycheck. You might want to increase it to save more, or decrease it temporarily due to other financial needs.
3.4 Updating Beneficiaries: Designating beneficiaries ensures your 401(k) assets are distributed according to your wishes in the event of your passing. It's crucial to keep this information up-to-date, especially after significant life events like marriage, divorce, or the birth of a child.
3.5 Other Plan Changes (e.g., Loans, Hardship Withdrawals, Rollovers): While less common for routine adjustments, Fidelity also facilitates actions like taking a loan from your 401(k), requesting a hardship withdrawal (under specific circumstances), or rolling over an old 401(k) from a previous employer. These typically involve more complex processes and specific eligibility criteria.
Step 4: Executing Your Desired Changes
Now, let's get into the specifics for each common change type.
Sub-heading: Changing Investment Elections (Future Contributions)
Step 4a.1: Accessing Investment Options From your 401(k) summary page, look for a section or menu option titled "Investments" or "Change Investments." Click on it.
Tip: Take a sip of water, then continue fresh.
Step 4a.2: Selecting Future Contributions You'll likely see options to "Change Future Investments" or "Change Investment Elections." Select the appropriate option for future contributions.
Step 4a.3: Choosing New Investments You'll be presented with a list of the investment options available within your specific 401(k) plan. These commonly include:
Target Date Funds: Diversified portfolios that automatically adjust their asset allocation as you approach a specific retirement date.
Index Funds: Track a specific market index (e.g., S&P 500) at low costs.
Actively Managed Mutual Funds: Managed by professionals aiming to outperform the market.
Bond Funds: Invest in various types of bonds.
Review the fund performance, expense ratios, and risk profiles carefully. You'll enter the percentage of your future contributions you want allocated to each chosen fund. The total should equal 100%.
Step 4a.4: Review and Confirm Fidelity will provide a summary of your proposed changes. Review everything meticulously before confirming. Once satisfied, click "Confirm" or "Submit." You'll usually receive a confirmation message or email.
Sub-heading: Rebalancing Current Investments (Existing Balance)
Step 4b.1: Accessing Investment Options Similar to changing future contributions, navigate to the "Investments" or "Change Investments" section of your 401(k) account.
Step 4b.2: Selecting Current Investments/Exchange Look for an option to "Change Current Investments" or "Exchange Investments." You might see options to "Exchange one investment" or "Exchange MULTIPLE Investments" (for a full rebalance). Choose "Exchange MULTIPLE Investments" for a comprehensive rebalance.
Step 4b.3: Starting Your Rebalance You'll typically find a "Start your Rebalance" option. Click it. The system will then ask for the "source of rebalance." Select "Rebalance all sources" to have complete control over your entire portfolio.
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Step 4b.4: Defining New Allocations A table or interface will display your current investments and their respective allocations. You will enter your desired new allocation percentages for each fund. Ensure that the total percentage adds up to 100%. As you adjust, you might see the system calculate the amounts that will be bought and sold.
Step 4b.5: Review and Execute Carefully review the proposed rebalance. Understand that this involves selling some investments and buying others, which might have tax implications if it's not a tax-deferred account, but 401(k)s are generally tax-deferred. Confirm the transaction when you are ready.
Sub-heading: Adjusting Contribution Amount/Percentage
Step 4c.1: Locating Contribution Settings From your 401(k) summary page, look for a section like "Contributions," "Manage Contributions," or "Change Contributions."
Reminder: Revisit older posts — they stay useful.
Step 4c.2: Modifying Contribution Rate You'll typically see your current contribution percentage (e.g., 5% of your pay). You'll have the option to increase or decrease this percentage, or even set a specific dollar amount per pay period if your plan allows.
Step 4c.3: Pre-tax vs. Roth 401(k) (if applicable): If your plan offers both pre-tax and Roth 401(k) options, you might be able to adjust the allocation between these two as well. Remember, pre-tax contributions lower your taxable income now, while Roth contributions are made with after-tax money but grow tax-free and are withdrawn tax-free in retirement.
Step 4c.4: Effective Date and Confirmation You may be asked to select an effective date for your changes, often tied to your payroll cycle. Review the changes carefully before confirming.
Sub-heading: Updating Beneficiaries
Step 4d.1: Navigating to Profile/Beneficiaries From your main Fidelity dashboard or your 401(k) summary, look for a "Profile" or "Account Settings" section. Within this, you should find a "Beneficiaries" or "Designate Beneficiaries" link.
Step 4d.2: Adding/Editing Beneficiaries You'll be able to view your current beneficiaries (if any) and add new ones or modify existing ones. You'll typically need to provide:
Full name
Relationship to you
Social Security Number
Date of birth
Percentage of inheritance
You can designate primary beneficiaries (who receive assets first) and contingent beneficiaries (who receive assets if primary beneficiaries pre-decease you).
Step 4d.3: Review and Submit Double-check all information for accuracy. Once confirmed, submit the changes. You'll likely receive an electronic confirmation.
Step 5: Review and Monitor
After making any changes to your Fidelity 401(k) plan, it's not a one-and-done situation.
5.1 Confirming Changes: Always verify that your changes have been successfully implemented. Check your account summary, transaction history, or confirmation documents.
5.2 Ongoing Monitoring: Regularly review your 401(k) statement and online account to ensure your investments are performing as expected and that your contributions are being processed correctly. Market conditions can change, and your financial goals might evolve, necessitating further adjustments down the line.
QuickTip: Look for contrasts — they reveal insights.
Final Considerations
Employer-Specific Rules: While Fidelity provides the platform, your employer's specific 401(k) plan may have certain rules or restrictions. For instance, some plans limit how often you can change investment elections. If you have questions about plan-specific rules, contact your HR department or the plan administrator.
Tax Implications: For most routine 401(k) changes (like investment allocation or contribution amounts), there are no immediate tax implications as it's a tax-deferred account. However, actions like hardship withdrawals or certain rollovers can have significant tax consequences. Always consult with a financial advisor or tax professional if you're unsure about the tax implications of a specific action.
Professional Guidance: If you feel overwhelmed or unsure about your investment choices, consider seeking advice from a qualified financial advisor. Fidelity also offers planning tools and, in some cases, direct access to advisors who can help you make informed decisions.
10 Related FAQ Questions
Here are 10 frequently asked questions, starting with "How to," related to managing your Fidelity 401(k) plan, with quick answers:
How to check my current 401(k) balance on Fidelity? Log in to your Fidelity account, navigate to your "Workplace Savings" or "401(k)" account, and your current balance will be prominently displayed on the summary page.
How to find my 401(k) plan number with Fidelity? Your 401(k) plan number is typically found on your account statements, within your online account details under a "Plan Information" section, or by contacting your employer's HR department.
How to increase my 401(k) contribution limit for Fidelity? While you can't increase the IRS-mandated contribution limits, you can adjust your personal contribution percentage or amount within your Fidelity 401(k) by logging in, going to "Contributions" or "Manage Contributions," and modifying the figures.
How to understand the investment options available in my Fidelity 401(k)? On the Fidelity platform, when you go to "Investments" or "Change Investments," each fund usually has a link to its prospectus or detailed information, including performance, expense ratios, and risk levels. You can also utilize Fidelity's educational resources.
How to roll over an old 401(k) into my current Fidelity 401(k) or IRA? Log in to Fidelity, and look for "Rollovers" or "Move Money." Fidelity offers tools to initiate a direct rollover from a previous employer's plan into a Fidelity IRA or, if your current plan allows, into your existing Fidelity 401(k).
How to take a loan from my Fidelity 401(k)? The option for a 401(k) loan is plan-specific. Log in to your Fidelity account, and look for "Loans" or "Withdrawals/Loans" under your 401(k) options. You'll need to check if your plan allows it and understand the terms, including repayment schedules and interest rates.
How to make a hardship withdrawal from my Fidelity 401(k)? Hardship withdrawals are only permitted under strict IRS guidelines and if your specific plan allows them. Navigate to "Withdrawals" or "Loans/Withdrawals" in your Fidelity 401(k) section. You'll need to provide documentation to prove an "immediate and heavy financial need."
How to change my address or contact information for my Fidelity 401(k)? Log in to your Fidelity account, go to "Profile" or "Account Settings," and then locate the "Contact Information" section to update your address, phone number, and email.
How to designate or update beneficiaries for my Fidelity 401(k)? Log in to Fidelity, navigate to your 401(k) account, and look for "Profile" or "Account Settings," then click on "Beneficiaries" to add, modify, or remove individuals or entities.
How to get professional guidance on my Fidelity 401(k) investment strategy? Fidelity offers various resources, including online planning tools and, for some plans, access to financial advisors. Look for "Planning & Advice" or "Contact Us" sections on the Fidelity website to explore these options.
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