We know saving for retirement is a top priority for many investors. No matter where you are in the planning process, you may have questions. We can help. Check out the questions we've already answered, or if you're a Fidelity customer, submit your own. We'll post replies to selected questions on a weekly basis.
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For more than 60 years, through all kinds of market conditions, Fidelity has been helping people like you pursue their financial goals. Ken Hevert and Sarah Walsh, who lead our Ask Fidelity team, have spent decades helping investors understand retirement strategies. They can help put Fidelity’s expertise to work for you.
Q&A for Answers to Customer Retirement Questions Category
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Thank you for your question. There are a few ways that you can complete your rollover. You can make a deposit using a mobile device, mail the check to us, or you can bring the check to your local Fidelity Investor Center.
First, if you have a smart phone or tablet, you can download the Fidelity Investments application for free. Once you log on to the app, which is done using the same username and password you’d use to log on to Fidelity.com, you can select to deposit a check using our mobile check scan capability. A list of your accounts will appear; select the Roth IRA you’d like to deposit your funds into and then indicate that this is a rollover deposit. From there, you can sign the check, scan the front and back of it and it will be deposited, as a rollover, into your Roth IRA.
If you’d prefer to deposit the check via the mail, you can send it to one of the following addresses, including a note with it as to which account you’d like it deposited into and that it represents a rollover from a Roth 401(k):
ATTN: Direct Rollovers
PO Box 770001
Cincinnati, OH 45277-0037
ATTN: Direct Rollovers
100 Crosby Parkway KC1H
Covington, KY 41015-0037
Finally, you can also deposit the check by visiting one of our Investor Centers. A representative in any of our branches would be happy to assist you. You can locate the Investor Center closest to you by visiting the following page on Fidelity.com: https://www.fidelity.com/customer-s...
I hope you find this information helpful.
The Earnings Test, which is the maximum amount you can earn before benefits are withheld, only applies to a person taking a Social Security benefit before full retirement age, and having earned income at the same time.
If your wife is receiving a benefit based on her own work record, it will not affect her benefit if you return to work. If her benefit is based on yours (a spousal benefit), it will also not be affected by the Earnings Test because you are over full retirement age. The nature of your wife’s pension, however, could affect her own benefit or her spousal benefit, if her pension is a non-covered pension (from a job where she didn’t pay Social Security taxes). But it will not affect your benefit.
Decisions regarding Social Security can be complicated, so I hope I’ve answered your questions. You may find some additional helpful information in this article on “Social Security tips for couples”: https://www.fidelity.com/viewpoints...
Thanks for your question. Unfortunately, you cannot make a penalty-free withdrawal from your 401(k) on the basis of your wife’s age.
Once you do reach the age of 59 ½, if need be, you could cash out your 401(k) without penalty, but income tax on the amount withdrawn would still be applied.
Based on the fact that you’re separated from service from the company where your 401(k) is currently held, an option you could consider to gain access to your retirement savings penalty free is to roll your funds to an IRA and leverage what the IRS calls a Substantially Equal Periodic Payment plan.
A plan like this allows for the withdrawal of funds from an IRA before you attain or surpass the “normal” distribution age of 59 ½. Things to consider about these types of withdrawals are:
• They need to continue, uninterrupted, for the longer of 5 years or when you turn 59 ½. So if you were to establish a withdrawal plan like this today, you’d need to continue withdrawing substantially equal periodic payments until you turn 62 or 63, depending on when you establish the plan.
• Also, simply put, your payment amount is calculated based on your life expectancy combined with a reasonable growth factor for future payments. This “reasonable” rate is based on the Federal mid-term rate set monthly by the Federal Reserve. In short, you cannot specify how much you want to take during the time period this withdrawal strategy is in effect.
If you’re interested in this option, you can learn more from the following IRS website: https://www.irs.gov/Retirement-Plan...
Finally, as always, when considering what to do with an old 401(k) make sure you understand all options that are available to you. Generally, they are:
• Keep your funds in your former employer’s retirement savings plan
• Roll your savings into a new plan where you may currently be employed
• Roll your funds into a rollover IRA
• Cash out
You can find additional information about each of these options and learn more about which may be right for your unique situation by reading the following Fidelity Viewpoint, What to do with an old 401(k):
I hope you find this information helpful. Thanks again for your question and have a great rest of your day.
We do offer a Roth IRA for minors, and information about it can be found here: https://www.fidelity.com/retirement... Keep in mind that your daughter needs to have earned income in order to contribute to an IRA, and contributions to the account can’t exceed what she makes annually in qualifying income, or $5,500, whichever is less.
Also, to answer your original question, you can only deposit cash into an IRA; you cannot transfer stocks. If you have questions about whether or not your daughter is eligible to contribute to an IRA, we suggest consulting with a tax advisor.
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