Feeling a little overwhelmed by retirement accounts and the idea of moving your hard-earned savings? You're not alone! Many people find the process of transferring funds between financial institutions like TIAA-CREF and Fidelity to be a bit daunting. But don't worry, we're here to break it down step-by-step and make it as clear and straightforward as possible.
Whether you're looking for more investment flexibility, consolidating your accounts, or simply prefer Fidelity's platform, transferring your TIAA-CREF funds can be a smart move for your financial future. Let's get started!
Your Comprehensive Guide to Transferring Money from TIAA-CREF to Fidelity
Transferring retirement assets, often called a "rollover," is a common practice when you change jobs, retire, or simply want to consolidate your financial accounts. This guide focuses on moving funds from a TIAA-CREF account to Fidelity. It's crucial to understand that this process typically involves a "direct rollover" or "trustee-to-trustee transfer" to avoid potential tax implications and penalties.
Important Note: The exact steps and required forms can vary slightly depending on the specific type of TIAA-CREF account you have (e.g., 401(k), 403(b), IRA, etc.) and the rules of your former employer's plan, if applicable. Always confirm details with both TIAA-CREF and Fidelity.
Step 1: Let's Begin with a Crucial Question for YOU!
Before we dive into the nitty-gritty, let's establish something important. Do you already have an existing Fidelity account, specifically a Rollover IRA or another suitable retirement account, where you intend to move these funds?
If YES: Great! You're one step ahead. Make sure you know your Fidelity account number.
If NO: No problem at all! Your very first action will be to open the appropriate account at Fidelity. We'll cover that in Step 2.
Understanding this upfront helps streamline the entire process. Ready to proceed? Let's go!
Step 2: Open Your Receiving Account at Fidelity (If You Don't Have One)
If you don't already have a Fidelity account designated for your rollover, this is your crucial starting point.
Sub-heading: Choosing the Right Fidelity Account Type
For most rollovers from employer-sponsored plans like TIAA-CREF 401(k)s or 403(b)s, a Fidelity Rollover IRA is the most common and often best choice. This type of IRA is specifically designed to accept funds from qualified retirement plans while maintaining their tax-deferred status.
Traditional IRA: If your TIAA-CREF account primarily holds pre-tax contributions, a Traditional IRA is generally the way to go. Your money continues to grow tax-deferred, and withdrawals in retirement will be taxed as ordinary income.
Roth IRA: If your TIAA-CREF account contains Roth contributions (after-tax), you'll want to open a Roth IRA at Fidelity to ensure a Roth-to-Roth rollover. Be mindful that rolling pre-tax funds into a Roth IRA (a Roth conversion) will trigger immediate income taxes on the converted amount.
New Employer's Plan: In some cases, you might be able to roll your TIAA-CREF funds directly into your new employer's retirement plan at Fidelity, if Fidelity is the plan provider. Check with your new employer's HR or benefits department to see if this is an option and if their plan accepts rollovers.
Sub-heading: How to Open Your Fidelity Account
Online: Visit Fidelity's website (Fidelity.com) and navigate to the "Open an Account" section. Look for options like "Rollover IRA" or "IRA."
Phone: Call Fidelity directly at 1-800-343-3548. Their representatives are well-versed in rollovers and can guide you through the account opening process and help you choose the most suitable account.
In Person: If there's a Fidelity Investor Center near you, you can visit them for in-person assistance.
Make sure your new Fidelity account is fully established and ready to receive funds before initiating the transfer from TIAA-CREF.
Step 3: Initiate the Transfer with Fidelity
This is often the easiest and most recommended way to start the rollover process, as Fidelity will do much of the heavy lifting.
Sub-heading: Contacting Fidelity to Start the Rollover
Call Fidelity: The most efficient way to initiate a rollover from TIAA-CREF to Fidelity is to call Fidelity's Retirement Service Center at 1-800-343-3548.
Explain Your Intention: Clearly state that you wish to transfer or roll over your retirement funds from TIAA-CREF into your Fidelity account.
Provide Account Details: Have your TIAA-CREF account number(s) and your new or existing Fidelity account number ready.
Fidelity's Role: Fidelity will typically initiate a "Letter of Acceptance" (LOA) or similar transfer request on your behalf. This document authorizes TIAA-CREF to release your funds to Fidelity. They may also provide you with specific instructions or forms that TIAA-CREF might require.
Fidelity is generally proactive in assisting with incoming rollovers, as they want your business.
Step 4: Contact TIAA-CREF to Authorize the Transfer
While Fidelity starts the pull, you'll likely need to give TIAA-CREF the green light.
Sub-heading: Gathering TIAA-CREF Account Information
Before you call TIAA-CREF, ensure you have:
Your TIAA-CREF account number(s).
The specific type of account(s) you are transferring (e.g., Retirement Choice, Traditional Annuity, etc.).
The approximate balance you intend to transfer.
Sub-heading: Speaking with TIAA-CREF
Call TIAA-CREF: Contact TIAA-CREF's customer service at 1-800-842-2252.
State Your Purpose: Inform them you wish to transfer your funds to Fidelity via a direct rollover.
Confirm Details: They will ask for your account information and may confirm the details of the receiving institution (Fidelity).
Paperwork/Electronic Authorization: TIAA-CREF will often require you to complete their own transfer form. They might:
Direct you to an online form in your secure TIAA-CREF account that you can electronically approve. This is often the quickest method.
Mail you a form to sign and return.
Require verbal instructions over a recorded line to initiate the process. Be prepared for this, and ensure you have all the Fidelity details at hand, especially the mailing address for checks if applicable.
A crucial piece of information TIAA-CREF will need for a direct transfer is Fidelity's mailing address for rollovers. This is typically:
Fidelity Investments PO Box 770002 Cincinnati, OH 45277-0090
Using any other address could delay or reject your transfer.
Address Payroll Contributions (If Applicable): If this transfer is due to a job change and your current payroll contributions are still going to TIAA-CREF, this transfer will not automatically redirect future contributions. You'll need to update your payroll deductions through your employer's benefits portal or HR department to direct future contributions to Fidelity (or your new employer's plan).
Step 5: Monitor the Transfer Process
Once you've initiated the transfer with both Fidelity and TIAA-CREF, it's time to keep an eye on its progress.
Sub-heading: Tracking Your Funds
Online Accounts: Regularly check your online accounts at both TIAA-CREF and Fidelity. You should see a status update or a pending transfer notification.
Confirmation: TIAA-CREF should send you a confirmation once the funds have been disbursed, and Fidelity will notify you once they've been received and invested.
Timeline: A direct rollover can take anywhere from 1 to 4 weeks to complete, depending on the complexity of your TIAA-CREF account and the processing times of both institutions. Be patient, but don't hesitate to follow up if it seems to be taking an unusually long time.
Sub-heading: Reinvesting Your Funds at Fidelity
Once the funds arrive at Fidelity, they will often sit in a money market fund or a similar cash equivalent until you actively invest them.
Log in to Fidelity: Access your Fidelity account online or through their mobile app.
Choose Investments: Select the investment options that align with your financial goals and risk tolerance. Fidelity offers a wide range of choices, including mutual funds, ETFs, stocks, and managed accounts.
Confirm Investment: Ensure your funds are invested as you intend.
Step 6: Review and Confirm
After the transfer is complete and your funds are invested at Fidelity, take a moment to review everything.
Sub-heading: Final Checks
Account Balances: Confirm that your TIAA-CREF account balance is zero (or whatever amount you intended to transfer) and that the full amount has been received and invested in your Fidelity account.
Tax Documents: Keep an eye out for any tax documents (e.g., 1099-R from TIAA-CREF, 5498 from Fidelity) related to the rollover. While direct rollovers are generally non-taxable events, you'll still receive these forms, and they are important for your tax records.
Beneficiaries: Crucially, remember to update your beneficiary designations at Fidelity. These do not automatically transfer.
Statements: Review your first few statements from Fidelity to ensure all looks as expected.
Frequently Asked Questions (FAQs)
Here are 10 common questions related to transferring money from TIAA-CREF to Fidelity:
How to initiate a direct rollover from TIAA-CREF to Fidelity?
The best way is to start by contacting Fidelity's Retirement Service Center. They can often initiate the transfer request on your behalf (a Letter of Acceptance) and guide you through the TIAA-CREF requirements.
How to avoid taxes and penalties during the transfer?
Always opt for a direct rollover or trustee-to-trustee transfer. This means the funds go directly from TIAA-CREF to Fidelity without passing through your hands, thus avoiding tax withholding and potential early withdrawal penalties.
How to transfer a TIAA Traditional Annuity to Fidelity?
Transferring TIAA Traditional Annuity balances can be more complex due to their unique contract features. You'll need to speak directly with TIAA-CREF about your specific contract's transfer options and any potential surrender charges or payout schedules that might apply.
How to find out my TIAA-CREF account type for rollover?
You can find your TIAA-CREF account type (e.g., 401(k), 403(b), IRA, etc.) by logging into your TIAA-CREF online account, checking your statements, or by calling TIAA-CREF customer service.
How to handle TIAA-CREF funds if my former employer provided the plan?
If your TIAA-CREF account is an employer-sponsored plan (like a 403(b) or 401(k)), confirm with your former employer's HR or benefits department whether you are eligible to roll out the funds and if there are any specific plan rules or required forms.
How to ensure all my funds are transferred from TIAA-CREF?
During your call with TIAA-CREF, explicitly state that you wish to transfer the entire vested balance of your account(s) to Fidelity. Confirm the exact amount to be transferred and the target Fidelity account.
How to deal with TIAA-CREF fees or surrender charges?
Some TIAA-CREF annuities or older contracts might have surrender charges for early withdrawals or transfers. TIAA-CREF should disclose any such fees when you speak with them about the transfer. Fidelity generally does not charge for incoming rollovers.
How to track the status of my rollover once initiated?
You can track the status by logging into both your TIAA-CREF and Fidelity online accounts. Both institutions usually provide status updates. If you don't see progress within a reasonable timeframe (e.g., 1-2 weeks), follow up with Fidelity first, as they initiated the pull.
How to invest my money once it arrives at Fidelity?
Once the funds arrive in your Fidelity account, they will typically be held in a money market fund. You'll need to log into your Fidelity account and actively select the specific investments (mutual funds, ETFs, stocks, etc.) where you want your money allocated.
How to update my beneficiaries after the transfer to Fidelity?
Beneficiary designations do not automatically transfer during a rollover. It is critical that you log into your new Fidelity account after the funds have arrived and formally designate your beneficiaries to ensure your assets are distributed according to your wishes.