What Happens to Your Fidelity NetBenefits Account When You Die
Quick Facts
Type
Employer 401(k) & Retirement
Urgency
Immediate — estate claim required
Phone
1-800-835-5097
Beneficiary
Designations override the will
Step-by-Step Guide
Call Fidelity to report the death
Call 1-800-835-5097 and select the option for reporting a death. Have the deceased's Social Security number and your relationship to the deceased ready. Fidelity will walk you through the claims process and mail you the required forms.
Estimated time: Immediately
Determine beneficiary status
Fidelity will check the beneficiary designation on file. If you are the named beneficiary, the process is simpler — funds transfer directly to you. If there is no beneficiary, the account goes through the estate. Beneficiary designations on retirement accounts override the will.
Complete and return claim forms
Fidelity will send a claim packet. Complete all forms, attach a certified death certificate, and return promptly. As a beneficiary, you can typically roll funds into an inherited IRA, take a lump sum, or set up periodic distributions.
Estimated time: 2-4 weeks
Decide on distribution method
Consult a tax advisor before choosing a distribution method. Lump sum distributions are taxable as ordinary income. Rolling into an inherited IRA allows continued tax-deferred growth. Spousal beneficiaries have additional rollover options.
Verify outstanding loans against the 401(k)
If the deceased had an outstanding 401(k) loan, it may be treated as a distribution and could create a tax liability. Ask Fidelity about any outstanding loans and how they will be handled.
Document Now Checklist
- Employer name
- Fidelity account number
- Balance (approx)
- Beneficiary designations
- Outstanding loan balance
- NetBenefits login email
Last verified: June 2026. Platform policies may change. Verify current procedures directly with Fidelity NetBenefits. This guide is for informational purposes only and does not constitute legal advice.
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