How to Transfer a 401k from Fidelity to Ameriprise

Leaving your old job doesn’t mean leaving your hard-earned retirement savings behind. Transferring a 401k from one provider to another is a common step when changing jobs or reevaluating your long-term financial plan. Whether you’re consolidating retirement accounts or aligning with a new provider like Ameriprise, the process can support a more streamlined retirement strategy.

At Carry, we want to make financial decisions feel more manageable, even if you’re handling them outside our platform. This guide breaks down the steps to transfer your 401k from Fidelity to Ameriprise smoothly and penalty-free. Please note that while we try to provide the most up-to-date information, these processes are subject to change without notice, so be sure to check with your provider before moving forward.

Step 1: Understand Your 401k Transfer Options

When you’re looking to move your 401k from Fidelity to Ameriprise, you’ll want to carefully evaluate your rollover eligibility and select the option that minimizes risk and tax impact. Your primary goal is to execute a seamless transfer while maintaining your account’s tax-advantaged status.

The most commonly used approach is a direct rollover, which allows you to move your retirement funds between providers without personal receipt of the funds. This method avoids potential withholding and simplifies the transition.

You’ll want to explore three primary transfer methods:

✅ Direct rollover from Fidelity to Ameriprise

✅ Indirect rollover (60-day distribution transfer)

✅ Trustee-to-trustee transfer

Step 2: Prepare Your Receiving Account

Before initiating the transfer, you’ll need to set up the groundwork for a successful 401k migration. Contact Ameriprise to open a compatible retirement account, such as a traditional IRA, that matches the tax treatment of your Fidelity 401k. This step ensures proper rollover classification and avoids potential tax issues.

✏️ Hypothetical Example: If your Fidelity 401k is a traditional pre-tax account, your new Ameriprise account should also be a traditional IRA.

Step 3: Gather the Right Documentation

Gathering the right documentation is crucial for a smooth transfer process. Here’s what you’ll want to have ready:

✅ Fidelity 401k account number

✅ Government-issued photo identification

✅ Most recent 401k statement

✅ Personal contact information

✅ Ameriprise account details

📝 Pro Tip: Double-check all documentation to prevent potential transfer delays or rejections.

Step 4: Initiate the Direct Transfer

Work with an Ameriprise advisor or service representative to initiate the direct transfer request. Most providers will coordinate with Fidelity on your behalf and submit the necessary forms electronically or by mail.

✏️ Hypothetical Example: Sarah contacted Ameriprise, submitted her Fidelity account information, and her rollover was completed in 5–7 business days.

Step 5: Understand Transfer Timelines

Typically, a 401k transfer between Fidelity and Ameriprise can take anywhere from 5-10 business days. The exact timeline depends on both financial institutions’ processing speeds and the completeness of your documentation.

📝 Important Reminder: Confirm estimated processing times with both Fidelity and Ameriprise to set realistic expectations.

Step 6: Evaluate Potential Transfer Fees

Most 401k rollovers between providers do not carry fees. However, it’s essential to verify any potential costs:

✏️ Hypothetical Example: John discovered his transfer involved a $45 administrative fee for liquidating certain fund holdings.

Step 7: Tax Considerations

A direct rollover is not a taxable event and does not require withholding, as long as the transfer is made between like accounts.  However, incorrect classification (e.g., receiving the funds personally) could lead to mandatory 20% withholding or early withdrawal penalties.

📝 Pro Tip: Always confirm the transfer is classified as a direct, trustee-to-trustee rollover to avoid unexpected tax implications.

Step 8: Final Verification & Confirmation

After the transfer, request written confirmation from both Fidelity and Ameriprise. Review the transferred amount and ensure it matches your original 401k balance.

✅ Confirm account ownership
✅ Check that all assets transferred properly
✅ Save all documentation for your records

📌 If you’re looking for more guidance, these resources may help:

Wrapping Up Your 401k Transfer Journey

Transferring your 401k from Fidelity to Ameriprise doesn’t have to be complicated. The key takeaways are straightforward: choose a direct rollover to minimize tax implications, ensure you have all necessary documentation, and work directly with both financial institutions to streamline the process. A direct trustee-to-trustee transfer helps you avoid potential early withdrawal penalties and unnecessary tax withholding.

Next steps involve gathering your current 401k account details, verifying your identification, and initiating the transfer request with Ameriprise. Remember that most transfers are processed without direct fees, but it’s always wise to confirm specific requirements with both your current and new financial providers.

📌 Want to dive deeper? Here are some other helpful (and free) resources:

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Disclaimer:

The Carry Learning Center is operated by The Vibes Company Inc. (“Vibes”) and contains generalized educational content about personal finance topics. While Vibes provides educational content and technology services, all investment advisory services discussed on this website are provided exclusively through its wholly-owned subsidiary, Carry Advisors LLC (“Carry Advisors”), an SEC registered investment adviser. The information contained on the Carry Learning Center should not be construed as personalized investment advice and should not be considered as a solicitation to buy or sell any security or engage in a particular investment, accounting, tax or legal strategy. Vibes is not providing tax, legal, accounting, or investment advice. You should consult with qualified tax, legal, accounting, and investment professionals regarding your specific situation.

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