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Inherited Fidelity 401(k): Claim Steps & Deadlines

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.

Full rules: what non-spouse beneficiaries can and cannot do →

What to expect from Fidelity

Beneficiary services: 1-800-343-3548 · Mon-Fri 7am-11pm ET, Sat-Sun 9am-5pm ET

Ordinary transfer processing: 3-5 business days (ACATS); 7-10 days for paper — death claims add a document-review stage on top, so budget extra weeks beyond that.

Online: https://nb.fidelity.com

Fidelity quirks that also bite beneficiary transfers:

  • Fidelity defaults to mailing a paper check if you initiate the transfer FROM their side — call the receiving custodian first to initiate an ACATS pull instead.
  • If you have employer stock in the 401(k) (NUA-eligible), do NOT roll it directly — separate the basis cost first or you lose the NUA tax treatment forever.
  • Fidelity will ask whether to sell your holdings and transfer cash, OR move them as-is (the industry term is "in-kind"). Moving as-is only works if the destination custodian supports the same funds; otherwise it sells your holdings and transfers cash (the default).

How to claim, step by step

  1. 1

    Order 3–5 certified copies of the death certificate — Fidelity and every other institution will each want one.

  2. 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. 3

    Ask Fidelity to CONFIRM you are the beneficiary of record before discussing options — plan documents control, not the will.

  4. 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. 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. 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.

Your distribution clock (2026 rules)

  • Most non-spouse beneficiaries must empty the account within 10 years of the death — and if the owner had already started RMDs, annual withdrawals are required in years 1–9 (enforced since 2025, with a 25% excise tax behind them).
  • The deceased's year-of-death RMD may still be due on YOUR calendar while the claim processes.

Full 10-year-rule breakdown with a worked year-by-year example →

Common questions

How do I start a Fidelity 401(k) death claim?

Call Fidelity's workplace-plan line and ask for the beneficiary distribution package for the specific plan — Fidelity routes death claims through a dedicated inheritor-services team, and because a 401(k) is governed by the employer's plan document, the package is plan-specific. Have a certified death certificate, the deceased's Social Security number, and your own ID ready before the call.

Can I keep the inherited IRA at Fidelity?

Yes — settling the claim into a Fidelity inherited IRA is usually the fastest path because the money never leaves the platform, which sidesteps the signature-guarantee requirements outbound transfers can trigger. You can always move it to another custodian later by direct trustee-to-trustee transfer.

Does Fidelity need a Medallion signature guarantee for the claim?

For claims settled into a Fidelity inherited IRA, often not. Sending the money OUT to another custodian's inherited IRA is likelier to trigger stamp or notarization requirements — ask what the specific plan requires before you choose the destination, not after the forms come back rejected.

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.