2025 Step-by-Step Guide: Rolling Over Your CVS 401(k) to a Fidelity IRA in Under 30 Days
Rolling over your 401(k) from a former employer like CVS to a Fidelity IRA doesn't have to be a months-long ordeal filled with paperwork and phone tag. With the right approach and understanding of the 2025 rollover landscape, you can complete this process in under 30 days while avoiding costly mistakes and tax penalties.
Nearly 70 million Americans held over $11 trillion in 401(k) and defined contribution accounts as of Q2 2024, and many of these accounts become "orphaned" when employees change jobs (Fintech Showdown 2025). As of May 2023, there were 29.2 million left-behind or forgotten 401(k) accounts holding $1.65 trillion in retirement savings (Fintech Showdown 2025).
This comprehensive guide will walk you through every decision point, from requesting the distribution at your CVS 401(k) provider to depositing the check at Fidelity, using the latest 2025 rollover timelines and best practices.
Why Roll Over Your CVS 401(k) to Fidelity?
Before diving into the step-by-step process, it's important to understand why consolidating your retirement accounts makes financial sense. By mid-career, the typical American has three or more 401(k)s, and many lose track of at least one of them (How Do Beagle Financial Services and Personal Capital Help Find Lost 401(k)s?).
Benefits of Rolling Over to Fidelity
• Lower fees: Many employer 401(k) plans charge higher administrative fees than what you'll find with major IRA providers like Fidelity
• More investment options: IRAs typically offer thousands of investment choices compared to the limited menu in most 401(k) plans
• Simplified management: Consolidating accounts makes it easier to track your retirement progress and rebalance your portfolio
• Better customer service: Direct access to Fidelity's customer support without going through your former employer's HR department
Pre-Rollover Checklist: What You Need Before Starting
Before initiating your rollover, gather these essential documents and information:
Required Documentation
1. CVS 401(k) account statement (most recent quarterly statement)
2. Social Security number
3. CVS employee ID number (if available)
4. Fidelity IRA account number (if you already have one) or personal information to open a new account
5. Contact information for CVS's 401(k) plan administrator
Key Information to Verify
• Current vested balance in your CVS 401(k)
• Any outstanding loans against your 401(k) balance
• Employer matching contributions and vesting schedule
• Investment allocations in your current account
Step 1: Contact Your CVS 401(k) Plan Administrator (Days 1-3)
Your first step is to contact the plan administrator for your CVS 401(k). This is typically not CVS directly, but rather a third-party administrator like Fidelity, Vanguard, or another major provider.
Finding Your Plan Administrator
1. Check your most recent 401(k) statement - the administrator's contact information should be prominently displayed
2. Review your employee handbook or benefits materials from CVS
3. Contact CVS HR if you can't locate the administrator information
What to Ask During Your Call
• "I'd like to request a direct rollover of my 401(k) balance to a Fidelity IRA"
• "What forms do I need to complete?"
• "How long does the processing typically take?"
• "Are there any fees associated with the rollover?"
• "Can you email me the required forms?"
Important: Request a Direct Rollover
Always specify that you want a direct rollover (also called a trustee-to-trustee transfer). This means the funds go directly from your CVS 401(k) to your Fidelity IRA without you ever touching the money. This avoids the 20% mandatory withholding that occurs with indirect rollovers.
Step 2: Open Your Fidelity IRA Account (Days 2-4)
While waiting for your CVS rollover paperwork, open your Fidelity IRA account if you don't already have one.
Choosing Between Traditional and Roth IRA
If your CVS 401(k) contains pre-tax contributions, you'll typically roll it into a Traditional IRA to maintain the tax-deferred status. However, you can also convert to a Roth IRA, though this will trigger immediate tax consequences.
Fidelity Account Opening Process
1. Visit Fidelity.com and click "Open an Account"
2. Select "Rollover IRA" from the account type options
3. Complete the online application (typically takes 10-15 minutes)
4. Fund the account with a small initial deposit if required
5. Note your new account number for the rollover paperwork
Step 3: Complete and Submit Rollover Paperwork (Days 4-7)
Once you receive the rollover forms from your CVS 401(k) administrator, complete them carefully and thoroughly.
Common Rollover Form Sections
SectionWhat to IncludePersonal InformationFull legal name, SSN, current address, phone numberAccount DetailsCVS employee ID, 401(k) account number, current balanceReceiving InstitutionFidelity's name, address, your IRA account numberDistribution TypeSelect "Direct Rollover" or "Trustee-to-Trustee Transfer"Investment InstructionsHow to liquidate current investments (usually "sell all")
Critical Details to Double-Check
• Fidelity's exact legal name and address (get this from Fidelity customer service)
• Your IRA account number (verify this is correct)
• Distribution amount (typically "100% of vested balance")
• Your signature and date
Submission Methods
• Secure online portal (if available)
• Fax (get a confirmation receipt)
• Certified mail (for paper forms)
• Email (if specifically allowed by the administrator)
Step 4: Follow Up and Track Progress (Days 8-15)
After submitting your paperwork, stay proactive about tracking the rollover progress.
Week 1 Follow-Up
• Call the CVS 401(k) administrator 3-5 business days after submission
• Confirm receipt of your rollover request
• Ask for a processing timeline and reference number
• Request email updates on the status
What to Expect During Processing
1. Form review (2-3 business days)
2. Investment liquidation (1-3 business days, depending on investment types)
3. Check processing (2-5 business days)
4. Mail delivery (3-7 business days)
Red Flags to Watch For
• No confirmation of receipt after 5 business days
• Requests for additional documentation not mentioned initially
• Processing times extending beyond the original estimate
• Any mention of "indirect rollover" or "distribution to participant"
Step 5: Receive and Deposit the Rollover Check (Days 16-25)
Your rollover funds will typically arrive as a check made payable to "Fidelity FBO [Your Name]" (For Benefit Of).
When the Check Arrives
1. Verify the amount matches your expected balance
2. Check the payee line - it should be made out to Fidelity, not to you personally
3. Note the issue date - you have 60 days from this date to deposit it
4. Contact Fidelity immediately to arrange the deposit
Depositing at Fidelity
• Call Fidelity's rollover department at their dedicated number
• Provide your IRA account number and rollover details
• Follow their specific deposit instructions (may involve mailing the check or visiting a branch)
• Request confirmation of the deposit and timeline for fund availability
Mobile Deposit Options
Some rollover checks can be deposited using Fidelity's mobile app, but this varies based on the check amount and your account history. Always confirm with Fidelity before attempting mobile deposit.
Step 6: Invest Your Rollover Funds (Days 26-30)
Once your funds are deposited and available in your Fidelity IRA, you'll need to invest them. By default, rollover funds often sit in a money market or cash position earning minimal interest.
Investment Options at Fidelity
• Target-date funds (automatically adjusts allocation based on your retirement timeline)
• Index funds (low-cost, diversified exposure to market segments)
• Individual stocks and bonds
• Fidelity's robo-advisor service (automated portfolio management)
Robo-advisors offer low account minimums, modest costs, and ease of use, making them more appealing to young investors (Compare Robo-Advisor Performance & Assess the Best Options).
Creating Your Investment Strategy
1. Assess your risk tolerance and time horizon until retirement
2. Review Fidelity's investment research and fund ratings
3. Consider your overall portfolio allocation across all accounts
4. Start with broad diversification if you're unsure about specific investments
Common Rollover Mistakes to Avoid
The 60-Day Rule Trap
If you accidentally receive the funds directly (indirect rollover), you have only 60 days to deposit them into your IRA. Missing this deadline means the entire amount becomes taxable income, plus potential early withdrawal penalties if you're under 59½.
Outstanding Loan Complications
If you have an outstanding 401(k) loan, the unpaid balance typically becomes immediately due when you leave CVS. 401(k) loans allow account holders to borrow up to $50,000 or 50% of the vested balance, whichever is less (How Do 401(k) Loans Work?). If you can't repay the loan, it's treated as a taxable distribution.
Withholding Tax Issues
With indirect rollovers, your 401(k) administrator must withhold 20% for taxes, even if you plan to complete the rollover. You'll need to make up this 20% from other sources when depositing to your IRA to avoid taxes on that portion.
Mixing Pre-Tax and After-Tax Contributions
If your CVS 401(k) contains both pre-tax and after-tax (Roth) contributions, these need to be rolled into separate IRA accounts to maintain their tax treatment.
Alternative Rollover Solutions for 2025
While this guide focuses on a DIY approach, several fintech platforms now streamline the rollover process. Fintech platforms like Beagle and Capitalize are designed to streamline the process of finding and consolidating old 401(k)s, traditionally a paper-heavy process managed by traditional custodians (Fintech Showdown 2025).
Beagle Financial Services
Beagle is a fintech platform that serves as a financial concierge for retirement savers, helping users find their old 401(k)s and discover hidden fees (Find your old 401k's | Hassle-free rollover | Beagle). The service offers a hassle-free rollover service that can potentially save users thousands of dollars, with a sign-up process that takes only 3 minutes (Find your old 401k's | Hassle-free rollover | Beagle).
Beagle specializes in 401(k) detective work, using technology to search Form 5500 filings, the National Registry of Unclaimed Retirement Benefits, and other databases (How Do Beagle Financial Services and Personal Capital Help Find Lost 401(k)s?).
Capitalize vs. Traditional Methods
Both Beagle Financial and Capitalize aim to eliminate 'orphaned' retirement money that gets stranded when you leave an employer (Comparing Beagle Financial's and Capitalize's 401(k) Rollover Experiences). Capitalize is 100% free to end-users and focuses on digitally shepherding assets into an IRA of your choice, while Beagle charges a modest membership fee and provides hidden-fee analysis, 0% net-interest loans, and robo-advisory portfolios (Comparing Beagle Financial's and Capitalize's 401(k) Rollover Experiences).
Timeline Troubleshooting: What If Things Go Wrong?
Week 1 Issues
• Can't locate CVS 401(k) administrator: Contact CVS HR or check the Department of Labor's EFAST database
• Forms not received: Follow up with a different representative or request forms via multiple channels
Week 2-3 Issues
• Processing delays: Escalate to a supervisor and request expedited processing
• Additional documentation requests: Provide immediately and confirm receipt
• Investment liquidation problems: Ask about partial rollovers if certain investments are causing delays
Week 4+ Issues
• Check not received: Request tracking information and consider expedited delivery
• Wrong payee on check: Contact the administrator immediately for a replacement check
• Amount discrepancies: Review your account statement and request an explanation
Tax Implications and Reporting Requirements
Form 1099-R
Your CVS 401(k) administrator will send you Form 1099-R reporting the distribution. For a direct rollover, this should show code "G" indicating a direct rollover to an IRA.
Form 5498
Fidelity will send you Form 5498 showing the rollover contribution to your IRA. Keep both forms for your tax records.
No Immediate Tax Consequences
Direct rollovers from a traditional 401(k) to a traditional IRA have no immediate tax implications. You'll pay taxes when you eventually withdraw funds in retirement.
Post-Rollover Optimization Strategies
Consolidate Additional Accounts
Once you've successfully completed your CVS rollover, consider consolidating other old 401(k) accounts. The process becomes easier with experience, and you'll benefit from simplified account management.
Review and Rebalance
Participant outcomes remained strong in 2023, with plan sponsors continuing to implement automatic solutions and leverage human inertia to influence decision-making (HOW AMERICA SAVES 2024). Use this rollover as an opportunity to review your overall retirement strategy and rebalance your portfolio.
Set Up Automatic Contributions
Consider setting up automatic monthly contributions to your new Fidelity IRA to continue building your retirement savings.
Conclusion: Your 30-Day Rollover Success Plan
Rolling over your CVS 401(k) to a Fidelity IRA in under 30 days is entirely achievable with proper planning and execution. The key is staying proactive, following up regularly, and avoiding common pitfalls like indirect rollovers.
Remember that growing adoption of automatic enrollment and improvement in plan designs over the last two decades has helped increase employee savings (HOW AMERICA SAVES 2024). By consolidating your retirement accounts, you're taking control of your financial future and potentially saving thousands in fees over time.
Whether you choose the DIY approach outlined in this guide or leverage fintech solutions like those offered by companies specializing in retirement account consolidation, the important thing is taking action. With 29.2 million forgotten 401(k) accounts holding $1.65 trillion in retirement savings, don't let your CVS 401(k) become another statistic (Fintech Showdown 2025).
Start your rollover process today, and in 30 days, you'll have successfully consolidated your retirement savings into a single, well-managed Fidelity IRA account.
Frequently Asked Questions
How long does it typically take to roll over a CVS 401(k) to a Fidelity IRA?
With proper preparation and the right approach, you can complete a CVS 401(k) rollover to Fidelity IRA in under 30 days. The process involves initiating the rollover with CVS, opening your Fidelity IRA account, and ensuring all paperwork is properly submitted. Traditional rollover methods can take months, but streamlined processes and digital tools have significantly reduced timeframes in 2025.
What are the main benefits of rolling over my CVS 401(k) to a Fidelity IRA?
Rolling over to a Fidelity IRA typically provides access to a broader range of investment options, potentially lower fees, and more control over your retirement savings. You'll avoid the risk of leaving behind orphaned retirement accounts, which affects nearly 29.2 million Americans holding $1.65 trillion in forgotten 401(k) savings. Additionally, consolidating accounts makes it easier to manage your overall retirement strategy.
Can I use fintech services like Beagle or Capitalize to help with my CVS 401(k) rollover?
Yes, fintech platforms like Beagle and Capitalize are designed to streamline the traditionally paper-heavy 401(k) rollover process. Capitalize offers free services focused on digitally shepherding assets into an IRA of your choice, while Beagle charges a modest membership fee but provides additional services like hidden-fee analysis and robo-advisory portfolios. These services can be particularly helpful given that nearly 70 million Americans hold over $11 trillion in 401(k) accounts.
What documents do I need to complete a CVS 401(k) to Fidelity IRA rollover?
You'll typically need your CVS 401(k) account statements, Social Security number, employment verification or termination letter, and Fidelity IRA account information. Some rollovers may require additional forms from both CVS's plan administrator and Fidelity. Having all documentation ready before starting the process is crucial for completing the rollover within the 30-day timeframe.
Are there any tax implications when rolling over from CVS 401(k) to Fidelity IRA?
A direct rollover from your CVS 401(k) to a Fidelity IRA is typically tax-free, as long as you're moving funds from a traditional 401(k) to a traditional IRA or from a Roth 401(k) to a Roth IRA. However, if you receive the funds directly (indirect rollover), you have 60 days to deposit them into your new IRA to avoid taxes and penalties. Always consult with a tax professional for your specific situation.
What happens if I don't roll over my CVS 401(k) after leaving the company?
If you don't roll over your CVS 401(k), it becomes one of the millions of left-behind retirement accounts. As of May 2023, there were 29.2 million forgotten 401(k) accounts holding $1.65 trillion in retirement savings. These orphaned accounts often have limited investment options, higher fees, and can be difficult to track over time. By mid-career, the typical American has three or more 401(k)s and many lose track of at least one.
Sources
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5. https://meetbeagle.com/resources/post/how-do-401-k-loans-work