Fidelity Retirement Rollover/Transfer Issue: 401(k) to IRA Pending or Failed

Transferring a workplace plan such as a Fidelity 401(k) into a Rollover IRA is normally smooth, but many people face snags: the rollover shows “pending,” “in progress,” or “failed,” a check gets lost in limbo, or the money arrives but sits in cash. Understanding how Fidelity handles rollovers-and where delays tend to occur-makes troubleshooting much faster - 888-684 ☏ 9487

Below is an overview of why a Fidelity 401(k) to IRA rollover may be pending or fail, how to fix it, and how to avoid the most common rollover mistakes.

  1. How a Fidelity 401(k) to IRA Rollover Is Supposed to Work

At a high level, a rollover is just the movement of funds from a former employer plan to an IRA while maintaining tax-advantaged status. Fidelity refers to this as a workplace "rollover" (not a taxable withdrawal) and provides step-by-step flows of how to accomplish a rollover online.

There exist two main types of rollover.

Direct rollover (recommended)

Indirect rollover

Important mindset: A rollover is a process, not a single click. Each stage has its own timeline—and most “pending” issues are just one stage waiting on the next.

Lensen:

  1. Why Your Fidelity 401(k) → IRA Rollover Is “Pending”

A) Employer plan approval or eligibility gate

Some plans do not allow rollovers until you are officially a former employee or reach a distributable event (termination, retirement, etc.). If your rollover is pending right after you initiated it, your plan may be waiting for employer confirmation. Fidelity NetBenefits forms and instructions often note that the plan can require extra steps.

Fix: Contact your former employer's HR/benefits team to confirm that your status is coded correctly and that rollovers are allowed.

B) Incomplete documentation or identification verification

Even when the rollover is initiated online, Fidelity may need:

In NetBenefits, go to the rollover request details and look for a "needs documents" or "action required" message. If you see a form request, submit the form via the NetBenefits upload link or by mail/fax per instructions.

C) Check in transit or not properly payable

If you've selected a direct rollover by check, that check should be made payable to Fidelity FBO (for benefit of) you, not to you directly. In fact, Fidelity gives explicit warning that checks in your name can lead to withholding and rollover complications.

Solution: Verify the check payee line. If this is incorrect, call Fidelity and your prior plan to have this reissued correctly.

D) Normal processing/hold times

Money movement has method-dependent, inherent processing windows in place. Fidelity offers general processing/hold-time guidelines for customers.

Fix: Use the transfer tracker in your Fidelity account. If it is moving step-by-step, then it's probably normal.

3. Why a Rollover can “Fail”

A) Wrong IRA type for the money

Classic failures include attempting to roll pre-tax 401(k) money into a Roth IRA or mixing after-tax sources incorrectly. Fidelity lists choosing the wrong IRA as the #1 rollover pitfall.
Fix:

Mixed sources: If you have mixed sources, please call Fidelity so they can route each portion correctly.

B) Indirect rollover deadline missed (60 days)

If the check was sent to you and you don't redeposit within 60 calendar days, the IRS treats it as a distribution-taxable and possibly penalized if you're under 59½.

Fix: If you're close to the deadline, deposit immediately and then speak to a tax professional about waiver options. The IRS does allow limited self-certification waivers in particular cases.

C) Withholding is not replaced in an indirect rollover

Because indirect rollovers have 20% withheld, many people redeposit the net check amount only. That, in turn, makes the withheld portion taxable.

To reinvest the entire amount, you must deposit your own money to pay for withholding.

D) Account not open or not eligible to receive rollovers

If your Fidelity IRA isn't opened yet-or is a type that can't accept certain sources-your rollover can bounce back. Fidelity's transfer page stresses opening the receiving Rollover IRA first.

Fix: First, open the correct IRA. Then, re-initiate the rollover.

  1. If a Rollover Check Is Stuck: How to Deposit It Correctly

Fidelity accepts rollover checks via:

Fidelity App: Mobile Check Deposit for IRAs

Key steps:

  1. Enter rollover details first (source plan, amount). Fidelity’s NetBenefits check-scan guide emphasizes the two-phase process: details, then check capture. ([Fidelity][7])

  2. Endorsement matters. For rollover checks, follow the on-screen instructions provided at Fidelity to avoid rejection.

  3. Track posting. When scanned, allow normal processing windows before escalating.

5. After the Rollover Lands: Don't Forget to Invest It

A rollover isn't really "done" until the money is invested. Fidelity calls out leaving rollover funds in cash as a major mistake. In IRAs, investments do not auto-allocate the way many 401(k)s do.

Fix: Check your IRA positions. If you see a cash/core position only, choose investments or consult with an advisor.

FAQ: Fidelity 401(k) to IRA Rollover Pending or Failed

Q1. How long does it take for a Fidelity 401(k) to IRA rollover?

Timing of direct rollovers done fully online is often completed within a few days though that also varies by the plan, method, and any approvals required. Fidelity states online rollovers through NetBenefits can transfer within days if no extra paperwork is needed.

**Q2. My rollover says “pending.” What’s the most common reason? Usually it’s waiting on employer plan approval, paperwork, or normal processing windows. Open the request details to see if an action is required.

**Q3. What if the rollover check is made out to me personally? That's an indirect rollover, where there's withholding and a 60-day redeposit rule. Fidelity warns this creates avoidable tax risk.

Q4. What’s the IRS 60-day rollover rule? If you get the distribution, you must redeposit it into an IRA or qualified plan within 60 days to keep it tax-free. Miss it and it becomes taxable.

**Q5. Why did my rollover “fail” after submission? Common causes include incorrect IRA type, mixed pre-tax/Roth source not segregated, forms missing, or receiving IRA not open/eligible.

**Q6. Can I deposit my rollover check with my phone? Yes. Fidelity does have mobile check-deposit instructions for eligible rollover checks. It also makes sure that the very first thing that is done is the entry of the rollover details.

Q7. My rollover arrived in my IRA but didn't invest. Is that normal? Yes. Unlike a 401(k), IRA rollovers usually end up in cash until you select investments. Fidelity identifies this as a common mistake.

**Q8. Who do I call if the rollover is stuck? Call Fidelity Workplace/NetBenefits support for the outgoing 401(k) and Fidelity IRA support for the receiving IRA. Their reps can conference with the prior provider if needed.

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