Inherited accounts
Inherited Fidelity 401(k): How to Claim It Without an Irreversible Tax Mistake
If you've inherited a Fidelity workplace 401(k), the claim itself is paperwork — but one wrong checkbox turns the entire account into taxable income in a single year, and there is no procedure to undo it.
This guide walks the claim step-by-step: what to have ready before you call Fidelity, how the inherited IRA must be titled, and the distribution options the 2024 final regulations actually allow.
The one mistake that cannot be undone
A non-spouse beneficiary has NO 60-day rollover. If the plan cuts a check in your name and you deposit it, the entire account becomes taxable income that year — there is no Rev. Proc. self-certification, no IRS letter, no fix. The ONLY safe move is a direct trustee-to-trustee transfer into a properly titled inherited IRA. If anyone offers to "just send you a check," stop the call and get help first.
How to claim, step by step
- 1
Order 3–5 certified copies of the death certificate — Fidelity and every other institution will each want one.
- 2
Call Fidelity's beneficiary-services line and ask for the "death claim" or "beneficiary distribution" package for the specific plan. Have the deceased's SSN, date of death, and your ID ready.
- 3
Ask Fidelity to CONFIRM you are the beneficiary of record before discussing options — plan documents control, not the will.
- 4
Before signing anything, decide the destination: a properly titled inherited IRA (e.g., “Jane Doe, deceased, FBO John Doe, beneficiary”). Titling errors are treated as full distributions.
- 5
Insist on a DIRECT trustee-to-trustee transfer into the inherited IRA. Decline any option that mails you a check payable to you personally.
- 6
Get the transfer confirmation in writing, then calendar your RMD obligations for the current year — the deceased's year-of-death RMD may still be due.
Fidelity beneficiary services: 1-800-343-3548 · Mon-Fri 7am-11pm ET, Sat-Sun 9am-5pm ET
Your distribution clock (2026 rules)
- Most non-spouse beneficiaries must empty the inherited account by December 31 of the 10th year after the death (SECURE Act 10-year rule).
- Under the July 2024 final regulations, if the original owner had already begun RMDs, you must ALSO take annual RMDs in years 1–9 — enforced beginning in 2025.
- A missed RMD carries a 25% excise tax on the shortfall (reducible to 10% if corrected within the correction window).
- Spouses have different options (including treating the account as their own). Eligible designated beneficiaries — minor children, disabled or chronically ill beneficiaries, or beneficiaries not more than 10 years younger — may use life-expectancy payouts instead.
Common questions
Can I roll an inherited 401(k) into my own IRA?
Only a surviving spouse can. A non-spouse beneficiary can only move the money by direct transfer into an inherited IRA titled in the deceased's name for your benefit — never into your own IRA, and never via a check made out to you.
Is there a 60-day rollover window for inherited accounts?
Not for non-spouse beneficiaries. The 60-day indirect rollover does not exist for them — a distribution check payable to a non-spouse beneficiary is immediately and irreversibly taxable.
When do I have to empty the account?
Under the SECURE Act's 10-year rule, most non-spouse beneficiaries must fully distribute the account by the end of the 10th year after death — and if the original owner had begun RMDs, annual distributions are also required in years 1–9 (enforced from 2025).
What happens if I miss a required distribution?
A 25% excise tax applies to the amount you should have taken (reduced to 10% if you correct it promptly by taking the distribution and filing Form 5329). The rules changed in 2024–2025 — many older articles are out of date.
Questions about your situation?
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Educational information, current to the July 2024 final regulations as enforced in 2026 — not tax, legal, or financial advice. Beneficiary elections are frequently irreversible; verify with your own CPA or estate attorney before acting. Estate deadlines (including the 9-month federal estate-tax election window) exist — consult the estate's attorney.