It looks like you're asking about moving your TIAA account to Fidelity. This is a common financial maneuver, and while it might seem daunting, it's definitely manageable with the right steps. Let's break it down!
Ready to take control of your investments?
Transferring your TIAA account to Fidelity can consolidate your financial life, potentially simplify management, and open up a wider range of investment options. Whether you're looking for different funds, lower fees, or just a more streamlined view of your portfolio, this guide will walk you through every step.
Step 1: Gather Your Information and Understand Your TIAA Account
Before you initiate any transfer, it's absolutely crucial to have a clear picture of what you're moving. This is where you, the user, come in!
Do you know what type of TIAA account you have? This is the very first and most important question. TIAA offers a variety of accounts, and the transfer process can differ slightly depending on whether you have:
A TIAA retirement plan (403(b), 401(a), etc.) from a former employer: These are often the most common accounts people look to transfer.
A TIAA individual annuity or mutual fund account: These are generally more straightforward to transfer.
A TIAA-CREF Traditional Annuity: This one can be tricky, as it often has surrender charges or specific withdrawal rules.
A TIAA taxable brokerage account: These are usually the easiest to transfer.
Action Item for You: Log in to your TIAA account online or review your latest statements. Identify the exact account type(s) you wish to transfer. Make a note of your account numbers.
Sub-heading: Understanding TIAA's Investment Options and Potential Restrictions
TIAA is known for its unique investment options, particularly its annuities. While these can offer stability, they might also come with restrictions on transfers, especially if they are part of a defined contribution plan or have annuitized payments.
Fixed Annuities: Some TIAA fixed annuities have specific payout schedules and may not be fully transferable in kind. You might need to liquidate them first.
Variable Annuities: These have sub-accounts that invest in various funds. Transfers are generally possible, but be aware of potential surrender charges or early withdrawal penalties, especially if you're still employed by the institution that set up the plan.
Mutual Funds: These are typically the easiest to transfer, either in kind (as they are) or by liquidating and transferring cash.
What to Look For:
Vestinng Schedule: If your TIAA account is from a current or former employer, check your vesting schedule. You can only transfer funds you are fully vested in.
Surrender Charges/Fees: Some TIAA products, especially annuities, may have surrender charges if you withdraw or transfer funds within a certain period. Be sure to understand any potential costs.
Withdrawal Restrictions: For retirement accounts, there may be age or employment separation requirements before you can roll over funds without penalty.
Step 2: Open Your Fidelity Account (If You Don't Have One Already)
If you're reading this, chances are you're already considering Fidelity, or perhaps even have an account. If not, this is your next crucial step.
Sub-heading: Choosing the Right Fidelity Account Type
Fidelity offers a wide array of account types, and selecting the correct one is vital for a smooth transfer.
Fidelity IRA (Traditional, Roth, Rollover): If you're transferring a TIAA 403(b) or 401(a) from a previous employer, a Fidelity Rollover IRA is often the best choice. This allows your retirement savings to continue growing tax-deferred.
Fidelity Brokerage Account (Taxable): If you're transferring a TIAA individual mutual fund account or a taxable brokerage account, a standard Fidelity brokerage account is appropriate.
Fidelity 403(b) or 401(k) (if applicable through your current employer): If your current employer offers a Fidelity 403(b) or 401(k) plan, and you're moving a TIAA account from a previous employer, you might be able to roll it directly into your current employer's Fidelity plan. Check with your HR department.
Action Item: Visit the Fidelity website (fidelity.com) or contact them directly to open the appropriate account. Have your personal information (Social Security number, driver's license, bank account details) ready. It's a straightforward online process.
Step 3: Initiate the Transfer Process with Fidelity
This is where the actual transfer request begins. Fidelity is generally very helpful in facilitating these transfers.
Sub-heading: Understanding ACATS (Automated Customer Account Transfer Service) vs. Direct Rollovers
The method of transfer will depend on the type of TIAA account you have:
ACATS Transfers: For non-retirement brokerage accounts and some mutual fund accounts, Fidelity can often initiate an ACATS transfer. This is a streamlined electronic process where Fidelity requests the assets directly from TIAA. This typically happens "in kind," meaning your investments are transferred as they are, without being sold. This is often the easiest method.
Direct Rollovers (for Retirement Accounts): For retirement accounts (like 403(b)s and 401(a)s), you'll typically execute a direct rollover. This means the funds are transferred directly from TIAA to Fidelity without passing through your hands. This is crucial to avoid tax penalties.
Action Item:
Log in to your new Fidelity account.
Navigate to the "Transfers" or "Rollovers" section. Fidelity's website is well-designed for this.
Select "Transfer an account from another firm" or "Roll over a retirement plan."
You will be prompted to provide information about your TIAA account:
TIAA's name (TIAA or TIAA-CREF)
Your TIAA account number
The type of account you are transferring (e.g., 403(b), individual brokerage)
Whether you want to transfer assets "in kind" (keeping your current investments) or liquidate and transfer cash. For most retirement rollovers, you'll transfer cash. For brokerage accounts, "in kind" is often preferred.
Fidelity will generate the necessary paperwork. This might include a Letter of Authorization (LOA) or a direct rollover form.
You may need to sign the forms electronically or print, sign, and mail/upload them. Follow Fidelity's instructions carefully.
Step 4: Follow Up with TIAA (If Required)
While Fidelity handles much of the heavy lifting, there are instances where you might need to directly interact with TIAA.
Sub-heading: When and How to Contact TIAA
For Direct Rollovers from Employer Plans: Sometimes, TIAA's employer-sponsored plans require a phone call or a specific form from you to authorize the rollover. This is especially true if you are still employed by the institution.
Action Item: If Fidelity informs you that TIAA requires further action from you, contact TIAA's customer service for retirement plans. Be prepared to provide your account information and state that you wish to initiate a direct rollover to a Fidelity IRA. They may send you a form to complete.
Understanding Specific Annuity Rules: If you have a TIAA-CREF Traditional Annuity or another complex annuity, TIAA will be the best source of information regarding any surrender charges, liquidation options, or transfer limitations.
Action Item: Call TIAA customer service. Be specific about your annuity product and your intent to transfer. Ask about any penalties or special procedures.
Sub-heading: Handling In-Kind Transfers vs. Liquidations
In-Kind Transfer: If you're transferring a brokerage account or mutual funds and want to keep your current investments, Fidelity will request an "in-kind" transfer. This means the actual shares or fund units are moved. This avoids selling and re-buying, which can be beneficial to avoid capital gains taxes in taxable accounts.
Liquidation and Cash Transfer: For most retirement rollovers, or if you want to change your investment strategy at Fidelity, you will likely choose to liquidate your TIAA holdings into cash before the transfer. TIAA will then send the cash to Fidelity.
Important Note for Retirement Accounts: Ensure the check is made payable to Fidelity FBO [Your Name] to maintain the tax-deferred status. Fidelity will guide you on this.
Step 5: Monitor the Transfer Process
Transfers can take some time, typically anywhere from 1-4 weeks, depending on the complexity of the accounts involved and whether it's an ACATS transfer or a direct rollover.
Sub-heading: Checking Status at Fidelity and TIAA
Fidelity: You can usually track the status of your transfer online through your Fidelity account. They often have a dedicated "Transfer Tracker" tool.
TIAA: While TIAA might not have as robust an online tracker, you can call their customer service for updates.
What to Look For:
Transfer initiated: Has Fidelity sent the request to TIAA?
Assets moved: Have the funds or shares left your TIAA account?
Assets received: Have the funds or shares arrived in your Fidelity account?
Action Item: Check your Fidelity account regularly. If you don't see progress after a week or so, contact Fidelity's transfer specialists. They are experts in troubleshooting these processes. Be patient, but persistent if needed!
Step 6: Reinvest Your Funds at Fidelity (If Applicable)
Once your assets have successfully arrived at Fidelity, this is your opportunity to put them to work in your new account.
Sub-heading: Crafting Your New Investment Strategy
If you transferred cash, or if your in-kind transfer included investments you no longer wish to hold, it's time to invest!
Explore Fidelity's Fund Lineup: Fidelity offers a vast selection of mutual funds, ETFs, stocks, and bonds. Take time to research options that align with your financial goals, risk tolerance, and time horizon.
Consider Fidelity Zero Funds: Fidelity offers several zero-expense-ratio index funds (like FZROX, FNILX) which can be very attractive for long-term investors.
Utilize Fidelity's Tools and Resources: Fidelity provides excellent research tools, screeners, and educational content to help you make informed investment decisions.
Seek Advice (Optional): If you're unsure about your investment strategy, consider speaking with a Fidelity financial advisor or an independent financial planner.
Action Item:
Review your transferred funds.
Develop an investment plan.
Place trades within your Fidelity account.
Step 7: Confirm Account Closure (If Desired) and Final Cleanup
Once your transfer is complete, you'll want to ensure everything is settled.
Sub-heading: Ensuring a Clean Break from TIAA
Check TIAA Account Balance: After the transfer is complete, log back into your TIAA account. It should ideally show a zero balance if you transferred everything. Sometimes, a small residual amount (like a few cents of interest) might remain.
Confirm Account Closure (if applicable): If you've transferred all assets and have no other accounts with TIAA, you can contact TIAA customer service to confirm the account is closed or will be automatically closed due to a zero balance.
Update Beneficiaries: Don't forget to update your beneficiaries on your new Fidelity account(s)! This is a critical step often overlooked.
10 Related FAQ Questions
Here are some common questions you might have about moving funds to Fidelity, with quick answers:
How to initiate a partial transfer from TIAA to Fidelity?
You can typically initiate a partial transfer by specifying which assets or what percentage of your account you wish to move during the Fidelity transfer application process.
How to transfer TIAA annuities to Fidelity?
TIAA annuities (especially Traditional Annuities) can be complex. You will likely need to contact TIAA directly to understand your options, including potential surrender charges or the possibility of liquidating the annuity to cash before transferring.
How to find my TIAA account number for the transfer?
Your TIAA account number can usually be found on your TIAA statements, online when you log into your TIAA account, or by contacting TIAA customer service.
How to avoid tax penalties when rolling over TIAA to Fidelity?
Always perform a direct rollover when transferring retirement funds. Ensure the funds go directly from TIAA to Fidelity without you taking personal possession of the money, and that any checks are made payable to Fidelity FBO your name.
How to transfer TIAA 403(b) to Fidelity?
For a 403(b) from a previous employer, initiate a direct rollover to a Fidelity Rollover IRA. If from a current employer, check if your employer's plan allows an "in-service" rollover or if you must wait until separation.
How to deal with TIAA-CREF Traditional Annuity during a transfer?
The TIAA-CREF Traditional Annuity has unique characteristics. Often, you cannot transfer it "in kind." You may need to annuitize it or take withdrawals, which can have tax implications and surrender charges. Contact TIAA for specific options.
How to track the progress of my TIAA to Fidelity transfer?
You can typically track the transfer progress through your Fidelity online account's "Transfer Tracker" tool. If you have questions, contact Fidelity's transfer specialists.
How to ensure all my TIAA investments are transferred?
During the transfer initiation with Fidelity, clearly state that you wish to transfer the entire account. After the transfer, check your TIAA account to ensure the balance is zero (or very close to it).
How to reinvest funds once they arrive at Fidelity?
If your funds arrived as cash, log into your Fidelity account, navigate to the "Trade" section, and select the investments you wish to purchase (e.g., mutual funds, ETFs, stocks).
How to update beneficiaries after moving my TIAA account to Fidelity?
Once your assets are at Fidelity, log into your Fidelity account, go to your account settings or profile, and look for a section on "Beneficiaries." It's crucial to update these to reflect your wishes.
