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When You Leave a Job: Rollover IRAs   As you near retirement, you may be faced with challenging questions about how to handle your retirement savings. •   If you're retiring from your job, you may want a solution that expands your investment choices while safeguarding your tax advantages. •   If you've held positions at several companies during your working career, you may have retirement money at several locations. It may make sense to consolidate those savings into one place to make investment decisions and retirement income planning easier. Consider "rolling over" your workplace savings plan assets-your 401(k), 403(b), 457(b) government plan or pension plan assets-into a Rollover IRA. Rolling Over a 401(k) - Know your Options Understanding the alternatives for your workplace savings plan assets - as well as the basic rules governing Rollover IRAs - can help you decide if a Rollover IRA makes sense for your situation. Your Alternatives When you retire from your job - you have a number of options concerning what you want to do with your 401(k) plan assets. You can:    Related Links   Learn more about Portfolio Advisory Services, a team of Fidelity professionals managing your assets Fixed Income All-in One Investment Strategies Freedom Funds Asset Allocation Funds   Option Possible Benefit Possible Disadvantage Option 1: Stay invested in your current plan* •   Avoids current taxes •   Money remains invested tax-deferred Investment choices are limited to those in the plan Option 2: Open a Rollover IRA* •   Avoids current taxes •   Money remains invested tax-deferred •   Consolidates retirement accounts •   Broad range of investment choices Loans are not available Option 3: Take the money out of the account in cash* •   Can invest in anything, although generally money will no longer maintain tax-deferred status •   Immediate access to cash remaining after withholding and penalty (if applicable) •   Federal income tax due on entire amount •   10% penalty if under 59 ½ •   Mandatory 20% withholding for federal income tax *Currently, you can generally move pre-tax contributions and investment earnings to a Rollover IRA or a new employer sponsored plan. After-tax contributions, distributions of certain substantially equal periodic payments, certain hardship distributions, and minimum required distributions cannot be rolled over, but can be moved to a taxable account. However, beginning January 1, 2002 under the new tax legislation signed into law on June 7, 2001, these assets will be eligible to be rolled over into a Rollover IRA if your state conforms to these new legislative provisions. Consult your tax advisor if you have questions. Start Your Rollover Fidelity Retirement Specialists can help you start your roll over today, or you can do it yourself online. With our Rollover Express service, Fidelity representatives help you through the rollover process, step-by-step. •   Open your Rollover IRA - Begin by filling out your Fidelity Rollover IRA application. You can open a Rollover IRA online. •   Work with your former employer - We can help you complete your former employer's paperwork. Then, we'll track your retirement plan assets through the entire process and notify you when we receive your assets. •   Choose investments - Finally, we'll help you develop a strategy and help you find the right investments for you.   Next Steps   Frequently Asked Questions - Get answers to some of your rollover questions     Open a Rollover IRA - Fill out an application online     Call 800-544-5650 to speak with a Rollover Specialist     Copyright 1998–2009 FMR LLC All rights reserved. Terms of Use  Privacy  Security  Site Map