Let's embark on this financial journey together! Are you ready to take control of your retirement savings and potentially simplify your financial life? If you're looking to move your TIAA funds to Fidelity, you've come to the right place. This comprehensive guide will walk you through every step of the process, ensuring a smooth and successful rollover.
Your Guide to Rolling Over TIAA to Fidelity
Moving your retirement funds can seem daunting, but with a clear plan, it's entirely manageable. This guide will demystify the process of rolling over your TIAA account to Fidelity, covering everything from initial research to final confirmation.
Step 1: Are You Ready to Make a Smart Financial Move? – Initial Assessment & Preparation
Before you even think about picking up the phone or logging into an account, let's make sure you're fully prepared. This initial phase is crucial for a seamless transition.
1.1 Understand Your TIAA Account(s)
Identify Account Types: Do you have a TIAA-CREF annuity, a TIAA Traditional account, or a TIAA retirement plan through a former employer? The type of account will influence the rollover process. Some TIAA products have unique surrender charges or payout schedules that need to be considered.
Locate Essential Documents: Gather recent statements for all TIAA accounts you intend to roll over. These statements will contain vital information like account numbers, balances, and contact details.
Understand Vesting Schedules (if applicable): If you're rolling over a plan from a former employer, ensure you understand your vesting schedule. You can only roll over the vested portion of your account.
1.2 Research Fidelity's Offerings
Explore Fidelity Account Types: Fidelity offers a wide array of retirement accounts, including Traditional IRAs, Roth IRAs, and Rollover IRAs. For a direct rollover, a Rollover IRA is typically the most suitable option, as it's specifically designed to receive funds from old employer-sponsored plans.
Review Investment Options: Fidelity boasts a vast selection of mutual funds, ETFs, stocks, and bonds. Consider what investment strategy aligns with your financial goals and risk tolerance. You might want to explore their low-cost index funds or managed portfolios.
Understand Fees and Expenses: While Fidelity is known for competitive pricing, always review their fee schedules, expense ratios of funds, and any potential transaction fees.
1.3 Decide on Your Rollover Strategy
Direct Rollover (Preferred): This is the cleanest and most straightforward method. Funds are transferred directly from TIAA to Fidelity, never touching your bank account. This avoids any tax implications or withholding.
Indirect Rollover (Use with Caution): In an indirect rollover, TIAA sends the funds to you, and you have 60 days to deposit them into a new Fidelity IRA. Be extremely careful with this method, as TIAA will withhold 20% for taxes, and if you miss the 60-day window, the entire amount could become taxable income. We strongly recommend the direct rollover whenever possible.
Step 2: Initiating the Rollover – Contacting Fidelity
Once you've done your homework, it's time to get the ball rolling with Fidelity.
2.1 Open a Fidelity Rollover IRA
Online Application: The easiest way to open a new account is typically online. Visit Fidelity's website (fidelity.com) and navigate to their IRA or Rollover IRA section.
Required Information: You'll need personal details (Social Security number, driver's license, address), employment information, and beneficiary designations.
Funding Selection: During the application, you'll indicate that you intend to fund the account via a rollover.
2.2 Gather Fidelity Account Information
Once your new Fidelity Rollover IRA is open, you'll need its account number and Fidelity's DTC (Depository Trust Company) number or their mailing address for direct rollovers. This information will be crucial when you contact TIAA.
Obtain a Rollover Form (if needed): Some institutions prefer a specific rollover form. Check with Fidelity if they have one that TIAA typically requests.
Step 3: Engaging with TIAA – The Transfer Request
This is where you directly instruct TIAA to release your funds. This step can sometimes be the most nuanced, as TIAA has specific procedures.
3.1 Contact TIAA Directly
Call TIAA: The most effective way to initiate a rollover from TIAA is usually by calling their customer service line. Be prepared for potentially long wait times.
Have Information Ready: Before you call, have your TIAA account numbers, your new Fidelity account number, and any other relevant details at hand.
Specify a Direct Rollover: Clearly state that you want to perform a direct rollover of your funds to your new Fidelity Rollover IRA. Emphasize that you do not want the funds sent to you.
3.2 Navigating TIAA's Rollover Process
TIAA Specific Forms: TIAA often requires specific forms to initiate a rollover. The representative will guide you on which forms are needed (e.g., a "Distribution Request Form" or a "Rollover Authorization Form").
Notarization: Some TIAA forms, especially for larger sums, might require a medallion signature guarantee or notarization. Be prepared for this possibility and ask the representative if it's necessary. This often requires a visit to your bank or a notary public.
Understanding Payout Options (if applicable): For TIAA Traditional Annuities or certain vested employer plans, TIAA might offer various payout options. Ensure you select the option that facilitates a full direct rollover of the entire account balance (or the portion you wish to roll over).
3.3 Submitting the Forms
Follow Instructions Meticulously: Ensure all forms are filled out accurately and completely. Missing information can significantly delay the process.
Send Via Secure Method: If mailing physical forms, consider using certified mail with a return receipt to track delivery. Some forms might be able to be uploaded securely online or faxed.
Step 4: Tracking and Confirmation
The waiting game begins, but it's important to monitor the progress.
4.1 Monitor Both Accounts
Check TIAA Account: Periodically check your TIAA account online or via statements to see if the funds have been disbursed.
Check Fidelity Account: Regularly log into your Fidelity account to see if the funds have arrived.
Allow Time: A direct rollover can take anywhere from 1 to 4 weeks to complete, sometimes longer depending on the complexity of your TIAA account and their processing times.
4.2 Follow Up if Needed
Contact TIAA First: If you don't see progress within a reasonable timeframe (e.g., 2-3 weeks), contact TIAA first to inquire about the status of your rollover request.
Contact Fidelity Second: If TIAA confirms the funds have been disbursed but they haven't appeared at Fidelity, then contact Fidelity's customer service.
4.3 Confirm Successful Rollover
Once the funds appear in your Fidelity Rollover IRA, verify the amount matches what was disbursed from TIAA.
Invest Your Funds: Don't forget the final and crucial step: investing the funds in your Fidelity account according to your financial plan! The money won't grow until it's invested.
Step 5: Post-Rollover Considerations & Tax Implications
Congratulations, you've successfully rolled over your TIAA account to Fidelity! But there are a few more things to keep in mind.
5.1 Tax Form 1099-R
Expect a 1099-R from TIAA: Even with a direct rollover, TIAA will typically issue a Form 1099-R to you for tax purposes, indicating a distribution.
Code G is Good: For a direct rollover, Box 7 of your 1099-R should have Code G ("Direct rollover"). This code signifies that the distribution was directly rolled over and is not taxable.
No 5498 from Fidelity (initially): Fidelity will likely issue a Form 5498 next year, confirming the contribution to your IRA.
5.2 Consult a Tax Professional
While this guide provides a general overview, it is always advisable to consult with a qualified tax advisor regarding your specific situation, especially if you have complex financial holdings or are considering an indirect rollover. They can ensure you meet all IRS requirements.
5.3 Consolidate Your Financial Life
Now that your funds are at Fidelity, take advantage of the opportunity to review your overall financial picture. Perhaps consolidate other accounts or adjust your investment strategy.
Frequently Asked Questions: How to Roll Over TIAA to Fidelity
Here are 10 common questions with quick answers to help you further:
How to start the TIAA to Fidelity rollover process?
You start by opening a Rollover IRA at Fidelity and then contacting TIAA to request a direct rollover, providing them with your new Fidelity account details.
How to avoid taxes when rolling over TIAA to Fidelity?
Always opt for a direct rollover from TIAA to Fidelity. This ensures the funds go directly between institutions, avoiding any tax withholding or taxable events.
How to find my TIAA account number for the rollover?
Your TIAA account number can be found on your most recent TIAA statement or by logging into your TIAA online account.
How to get a Medallion Signature Guarantee for TIAA rollover forms?
You can typically obtain a Medallion Signature Guarantee from your bank or a financial institution where you have an account. Call ahead to confirm their service and requirements.
How to track the status of my TIAA to Fidelity rollover?
You can track the status by periodically checking your TIAA account online to see if funds have been disbursed and your Fidelity account to see if they've been received. You can also call TIAA customer service for updates.
How to choose the right Fidelity account for my TIAA rollover?
For most rollovers from employer-sponsored plans or old IRAs, a Fidelity Rollover IRA is the most appropriate choice. It's designed specifically for this purpose.
How to invest my money after rolling over TIAA to Fidelity?
Once the funds arrive in your Fidelity account, you'll need to actively invest them. You can choose from Fidelity's wide range of mutual funds, ETFs, stocks, or managed solutions based on your financial goals.
How to know if my TIAA annuity can be rolled over to Fidelity?
Most TIAA retirement accounts and annuities can be rolled over, but some older or specific TIAA Traditional Annuities might have surrender charges or unique payout options that need to be considered. Always confirm with TIAA.
How to handle the 1099-R form from TIAA after a direct rollover?
You will receive a 1099-R from TIAA. For a direct rollover, Box 7 should show Code G. This indicates a non-taxable direct rollover, and you'll report this on your tax return.
How to get help if I encounter issues during the TIAA to Fidelity rollover?
First, contact the customer service of the institution where you are experiencing the issue (either TIAA or Fidelity). If the issue persists, consider seeking advice from a financial advisor or tax professional.