Dropping the Dime on Your Illinois Secure Choice Roth IRA: Can You Roll That Dough Over to Fidelity?
What's up, money movers? Let's talk about the dreaded retirement savings question that probably keeps you up at night, right next to whether you should’ve gone for that third slice of deep-dish pizza. You’ve got that Illinois Secure Choice Roth IRA, maybe your employer automatically signed you up, and it’s just sitting there, doing its thing. But now you’re thinking, “Man, I’m a big-shot investor now, I want my money over at Fidelity, where all the cool kids are.”
Is it possible? Is this a mission for Ethan Hunt, or can a regular Joe/Jane just get this done? Spoiler alert: You absolutely can, because the Illinois Secure Choice account is fundamentally a Roth IRA, and IRAs are portable. That’s right, it’s not an Alcatraz of assets! Get ready to give your savings a fresh start, because we’re about to dive deep into the paperwork jungle and emerge victorious.
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| Can I Add Illinois Secure Choice Roth To Fidelity |
Step 1: Checking Your Vitals (and Your Account’s, Too)
Before you go guns blazing at the transfer forms, you gotta make sure all your ducks are in a row. Think of this as the pre-game warm-up for your money.
1.1 Confirming the "What" and "Where"
First off, let’s be crystal clear: the Illinois Secure Choice Retirement Savings Program provides a Roth Individual Retirement Account (IRA). This is key! It’s not some weird 401(k) hybrid, which makes the whole rollover process way smoother. You are doing a Roth IRA-to-Roth IRA transfer/rollover.
Remember: Since this is a Roth, your contributions were made with after-tax dollars, meaning qualified withdrawals in retirement are generally tax-free. Keep that vibe going!
QuickTip: Look for contrasts — they reveal insights.
1.2 The "Fidelity Factor": Opening the Landing Pad
You can’t roll a ball into a field that doesn't exist. If you don't already have one, you need to open a Roth IRA account at Fidelity. Don’t open a Traditional IRA, don’t open a regular brokerage account. You need a Roth IRA to match the tax treatment of your Illinois Secure Choice Roth IRA. It's like finding a matching sock—crucial for a clean, tax-friendly outcome.
The online sign-up at a brokerage like Fidelity is usually slicker than a greased weasel, taking maybe 10-15 minutes. Make sure to choose the Roth IRA option!
Step 2: The Breakup: Initiating the Transfer from Illinois Secure Choice
This is the part where you call your old retirement program and say, "It's not you, it's me... I found a better investment menu."
2.1 Direct Transfer is the Vibe (and the Law, Sorta)
You have two main paths to move this money, but only one is the real MVP:
Tip: Let the key ideas stand out.
Direct Rollover/Transfer (The Best Way): This is where the Illinois Secure Choice administrator (the "custodian") sends the money directly to Fidelity (the "new custodian"). The check is made payable to Fidelity, FBO [Your Name]. This is the safest route to avoid any tax drama or accidentally missing a deadline. It's a clean, institutional wire transfer or check—no drama, no fuss.
Indirect Rollover (The Risky Route): They cut a check to you. You then have a strict 60-day window to deposit the entire amount into your new Fidelity Roth IRA. If you miss that deadline, BAM! Hello, taxes and potential penalties. And here's the kicker: with an indirect rollover of IRA funds, the IRS limits you to one rollover per 12-month period across all your IRAs. Seriously, stick to the direct transfer.
2.2 Making the Call and Filling the Forms
You'll need to contact the Illinois Secure Choice program's customer service or log into their online portal to initiate a transfer/distribution. You will likely be filling out a Distribution/Transfer Request Form.
When completing the form, you’ll need the following info from your new Fidelity account:
Fidelity's Name/Address: This is the custodian’s address for retirement assets (check Fidelity’s website or call them for the exact address/wire instructions—don't guess).
Your Fidelity Account Number: The Roth IRA account you just opened.
The Type of Transfer: Clearly mark it as a Direct Rollover/Trustee-to-Trustee Transfer and that it is moving Roth IRA assets.
Step 3: Fidelity Takes the Wheel: The Home Stretch
Once you send the request to the Illinois Secure Choice team, Fidelity can often step in to handle the rest of the heavy lifting.
3.1 LoA: The "Letter of Acceptance"
Sometimes, your old administrator (Illinois Secure Choice) will want a Letter of Acceptance (LOA) from Fidelity, confirming they are ready to receive the assets. Don’t sweat it! Just call the Fidelity retirement team and tell them you are transferring an outside Roth IRA from the Illinois Secure Choice program. They are professionals; they do this all day, every day. They will generate the required transfer documents, often called an ACATs form or a specific transfer form, which you can then send to your old program if needed.
Tip: Reading with intent makes content stick.
3.2 The Waiting Game
Transfers can feel like waiting for a text back from that person you had a great first date with—it takes a while! It can take anywhere from two to four weeks for the funds to actually show up in your Fidelity account. Patience, young grasshopper, is an investor's best friend.
3.3 Invest That Loot!
The most important step! When the cash lands in your shiny new Fidelity Roth IRA, it will likely be sitting in a money market fund, which is basically a holding tank. You have to actively choose new investments! The whole point of the move was probably to get access to Fidelity’s massive lineup of low-cost funds, ETFs, and stocks. So go ahead, get your investment game on!
FAQ Questions and Answers
How do I start the direct rollover process to Fidelity?
QuickTip: Focus more on the ‘how’ than the ‘what’.
You start by logging into your Illinois Secure Choice account or calling their client services. Request a distribution/transfer form and specify that you want a Direct Trustee-to-Trustee Transfer to your new Fidelity Roth IRA. Fidelity can also help initiate this process.
Will I have to pay taxes or penalties for rolling over my Illinois Secure Choice Roth IRA?
No! As long as you complete a direct rollover (or an indirect rollover within the 60-day limit) from one Roth IRA to another Roth IRA, the transaction is non-taxable and penalty-free. You are simply moving the funds between custodians.
How long does it take for the money to show up in my Fidelity account?
A direct transfer can take an average of two to four weeks from the time you submit the paperwork to the old administrator until the funds settle in your new Fidelity account. It's a bureaucracy thing, not a fast-food drive-through!
Can I just keep my money in Illinois Secure Choice?
Totally! You can leave your funds right where they are, even if you move jobs or move out of Illinois. You will remain the account holder, and it will continue to grow (or shrink!) based on its current investments. It’s entirely your choice to move it.
What if I accidentally open a Traditional IRA at Fidelity instead of a Roth IRA?
Yikes! You need to call Fidelity immediately. Transferring Roth assets into a Traditional IRA could create a significant and taxable mess, often called a non-reportable conversion or a "prohibited transaction." It’s a clean-up job you don't want, so double-check that account type before you hit submit on any transfer form.
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