Step-by-Step 2025 Guide: Rolling Over Your Walgreens 401(k) to a Low-Cost IRA Online
Introduction
If you're a former Walgreens employee with a 401(k) sitting in your old employer's plan, you're not alone. As of May 2023, there were 29.2 million left-behind or forgotten 401(k) accounts holding $1.65 trillion in retirement savings (Beagle Financial). Rolling over your Walgreens 401(k) to a low-cost IRA can help you consolidate your retirement savings, reduce fees, and gain better control over your investment options.
This comprehensive guide walks you through every mouse-click of the online rollover process, from locating your plan on Fidelity NetBenefits to completing a direct trustee-to-trustee transfer that avoids tax withholding. We'll show you exactly where to find the distribution forms, how to enter custodial details for a seamless transfer, and what documents to expect throughout the process.
Why Roll Over Your Walgreens 401(k)?
By mid-career, the typical American has three or more 401(k)s, and many lose track of at least one of them (Beagle Financial). Leaving your 401(k) with a former employer can lead to several issues:
• Higher fees: Former employee accounts often face increased administrative costs
• Limited investment options: Employer plans typically offer 10-25 investment choices versus thousands in an IRA
• Forgotten accounts: Out of sight, out of mind can lead to lost retirement savings
• Complex management: Multiple accounts make it harder to rebalance and track progress
Rolling over to a low-cost IRA addresses these concerns while maintaining the tax-advantaged status of your retirement savings. Fintech platforms like Beagle and Capitalize are designed to streamline the traditionally complex process of managing 401(k) accounts (Beagle Financial).
Step 1: Locate Your Walgreens 401(k) on Fidelity NetBenefits
Walgreens partners with Fidelity to administer their 401(k) plan, so your first stop is the Fidelity NetBenefits website. Here's how to access your account:
Accessing Your Account
1. Visit NetBenefits.com: Navigate to the Fidelity NetBenefits login page
2. Enter your credentials: Use your username and password from when you were employed
3. Reset if needed: If you've forgotten your login details, use the "Forgot Username or Password" link
4. Verify your identity: You may need to answer security questions or receive a verification code
What You'll See
Once logged in, you'll find:
• Current account balance
• Investment allocation
• Vesting schedule
• Available distribution options
• Contact information for plan administrators
If You Can't Access Your Account
Some former employees struggle to locate their old 401(k) accounts. Beagle Financial Services specializes in 401(k) detective work, using technology to search Form 5500 filings, the National Registry of Unclaimed Retirement Benefits, and other databases (Beagle Financial).
Step 2: Understanding Your Distribution Options
Before initiating a rollover, it's important to understand your options:
Direct Rollover (Recommended)
• Funds transfer directly from your 401(k) to your new IRA
• No taxes withheld
• No 60-day deadline to worry about
• Maintains tax-advantaged status
Indirect Rollover
• Check issued to you personally
• 20% federal tax withholding required
• Must deposit funds into IRA within 60 days
• More complex and risky
Cash Distribution
• Immediate access to funds
• Subject to income taxes and potential penalties
• Not recommended for retirement savings
For most situations, a direct rollover is the best choice as it avoids tax complications and maintains the full value of your retirement savings.
Step 3: Choose Your IRA Provider
Selecting the right IRA provider is crucial for minimizing fees and maximizing investment options. Consider these factors:
Key Selection Criteria
FactorWhat to Look ForFeesLow or no annual fees, minimal transaction costsInvestment OptionsBroad selection of low-cost index funds and ETFsTechnologyUser-friendly platform with mobile accessCustomer ServiceResponsive support for rollover questionsAdditional ServicesFinancial planning tools, educational resources
Popular Low-Cost Options
• Vanguard: Known for low-cost index funds
• Fidelity: No minimum balance, extensive fund selection
• Charles Schwab: Comprehensive platform with research tools
• Beagle Invest: Robo-advisory with automated ETF investing for rollover accounts (Finder)
Beagle is a comprehensive 401(k) search service that also handles the rollover process for easier management of old accounts (Finder).
Step 4: Gather Required Information
Before starting the rollover process, collect these essential details:
From Your Current 401(k)
• Account number
• Current balance
• Plan administrator contact information
• Any outstanding loans or hardship withdrawals
For Your New IRA
• IRA provider name and address
• Your new IRA account number
• Routing and account numbers for direct deposit
• Custodial contact information
Personal Information
• Social Security number
• Current address and phone number
• Employment dates with Walgreens
• Beneficiary information
Step 5: Download and Complete Distribution Forms
Now comes the paperwork. Here's how to navigate the Fidelity NetBenefits system:
Finding the Forms
1. Log into NetBenefits: Access your Walgreens 401(k) account
2. Navigate to "Quick Links": Look for distribution or withdrawal options
3. Select "Request a Distribution": This will start the process
4. Choose "Rollover": Select direct rollover to avoid tax withholding
Key Form Sections
Personal Information
• Verify all personal details are current
• Update address if you've moved since leaving Walgreens
• Confirm Social Security number
Distribution Details
• Select "Direct Rollover to IRA"
• Choose full or partial distribution
• Specify investment liquidation preferences
Receiving Institution Information
• Enter your new IRA provider's details
• Include routing numbers and account information
• Provide custodial contact information
Required Signatures and Notarization
Some forms may require:
• Notarized signatures
• Spouse consent (if married)
• Medallion signature guarantee for large amounts
Step 6: Execute the Direct Trustee-to-Trustee Transfer
The direct rollover process involves coordination between your old and new providers:
Timeline Expectations
StepTypical TimeframeForm processing3-5 business daysInvestment liquidation1-3 business daysCheck issuance2-5 business daysMail delivery3-7 business daysTotal Process2-3 weeks
Tracking Your Transfer
1. Confirmation numbers: Save all reference numbers from both providers
2. Status updates: Check NetBenefits for processing updates
3. New account monitoring: Watch for funds to appear in your IRA
4. Follow-up calls: Don't hesitate to call if transfers seem delayed
Entering Beagle IRA Custodial Details
If you're rolling over to a Beagle-managed IRA, you'll need specific custodial information. Beagle provides a robo-advisor with automated ETF investing if you choose to roll over your 401(k) to Beagle (Finder). Contact Beagle's customer service for the exact details needed for your rollover forms.
Step 7: What to Do If Your Digital Request Stalls
Sometimes online systems encounter glitches or processing delays. Here's your backup plan:
Key Phone Numbers
Fidelity NetBenefits Customer Service: 800-835-5095
When calling:
• Have your account number ready
• Reference your confirmation numbers
• Ask for a status update on your rollover request
• Request expedited processing if needed
Common Issues and Solutions
Form Rejection
• Missing signatures or dates
• Incorrect account information
• Outdated personal details
Processing Delays
• High volume periods (end of quarter/year)
• Complex investment liquidations
• Missing documentation
Communication Gaps
• Providers not coordinating effectively
• Lost paperwork in transit
• Incorrect routing information
When to Escalate
Contact a supervisor if:
• Your rollover has been pending for more than 30 days
• You're receiving conflicting information
• Important deadlines are approaching
• You're facing unexpected fees or taxes
Step 8: Investment Strategy for Your New IRA
Once your funds arrive in your new IRA, you'll need to invest them. Here are some strategies:
Asset Allocation Basics
Age-Based Approach
• Subtract your age from 110 for stock percentage
• Example: 35-year-old = 75% stocks, 25% bonds
• Adjust based on risk tolerance
Target-Date Funds
• Automatically adjust allocation over time
• Simple, hands-off approach
• Higher fees than individual index funds
Three-Fund Portfolio
• Total stock market index (60-70%)
• International stock index (20-30%)
• Bond index (10-20%)
• Low costs, broad diversification
Robo-Advisory Options
Many providers offer automated investment management:
• Algorithm-based portfolio construction
• Automatic rebalancing
• Tax-loss harvesting
• Typically 0.25-0.50% annual fees
Beagle offers robo-advisory portfolios as part of their comprehensive retirement account management platform, helping users consolidate multiple accounts into a single managed IRA.
Step 9: Tax Documentation and Record Keeping
Proper documentation is crucial for tax compliance and future reference:
Expected Tax Forms
Form 1099-R (from Fidelity)
• Reports the distribution from your 401(k)
• Shows gross distribution amount
• Indicates distribution code (direct rollover)
• Typically received by January 31st
Form 5498 (from new IRA provider)
• Reports IRA contributions and rollovers
• Shows rollover amount received
• Confirms tax-deferred status maintained
• Received by May 31st (or earlier)
Record Keeping Best Practices
1. Create a rollover file: Keep all related documents together
2. Digital copies: Scan important papers for backup
3. Transaction confirmations: Save all confirmation numbers and emails
4. Tax preparation: Provide forms to your tax preparer
5. Future reference: Keep records for at least seven years
Tax Implications
Direct Rollover (No Tax Consequences)
• No current year tax liability
• Maintains tax-deferred growth
• No early withdrawal penalties
Indirect Rollover (Potential Issues)
• 20% withholding must be made up from other sources
• Failure to complete within 60 days triggers taxes and penalties
• More complex tax reporting required
Step 10: Ongoing Account Management
After your rollover is complete, establish good account management habits:
Regular Review Schedule
Quarterly
• Check account balance and performance
• Review investment allocation
• Rebalance if significantly off-target
Annually
• Assess overall retirement savings progress
• Update beneficiary information
• Consider Roth conversion opportunities
• Review fee structure
Consolidation Benefits
Both Beagle Financial and Capitalize aim to eliminate "orphaned" retirement money that gets stranded when you leave an employer (Beagle Financial). Consolidating multiple retirement accounts provides:
• Simplified management and tracking
• Reduced administrative fees
• Better investment coordination
• Easier beneficiary management
• Clearer retirement planning picture
Troubleshooting Common Rollover Issues
Timing Problems
Documentation Issues
Investment Problems
Advanced Rollover Strategies
Partial Rollovers
You don't have to roll over your entire 401(k) balance:
• Keep some funds in the 401(k) if it offers unique benefits
• Roll over a portion to test your new provider
• Stagger rollovers across tax years for planning purposes
Roth Conversion Opportunities
Consider converting some traditional 401(k) funds to a Roth IRA:
• Pay taxes now for tax-free growth later
• Beneficial if you expect higher tax rates in retirement
• Can be done as part of the rollover process
Multiple Account Consolidation
If you have several old 401(k) accounts, consider consolidating them all:
• Simplifies management significantly
• May qualify for better fee structures
• Easier to implement comprehensive investment strategy
Beagle charges a membership fee and offers hidden-fee analysis, 0% net-interest loans, and robo-advisory portfolios (Beagle Financial). Their platform allows users to roll multiple accounts into a single managed IRA, view all balances in one dashboard, and access additional financial services.
The Role of Financial Technology in Rollovers
The rollover process has been revolutionized by fintech platforms that automate traditionally manual processes:
Traditional vs. Modern Approaches
Traditional Method
• Paper forms and mail delivery
• Multiple phone calls for status updates
• Manual coordination between providers
• Weeks or months to complete
Fintech-Enabled Process
• Digital forms and electronic signatures
• Real-time status tracking
• Automated provider coordination
• Streamlined completion in days
Beagle's Comprehensive Approach
Beagle has received 1,755 reviews on Trustpilot with an overall rating of 4.7 out of 5, indicating a generally positive customer experience (Trustpilot). The platform offers:
• Automated account discovery
• Streamlined rollover processing
• Ongoing account management
• Fee analysis and optimization
• Access to low-cost investment options
Beagle is ranked 118 out of 250 best companies in the non-bank financial service category on Trustpilot (Trustpilot).
Rollover Checklist
Use this checklist to ensure you don't miss any critical steps:
Pre-Rollover Preparation
• [ ] Locate your Walgreens 401(k) account on NetBenefits
• [ ] Research and select your new IRA provider
• [ ] Open your new IRA account
• [ ] Gather all required personal and account information
• [ ] Decide on full or partial rollover amount
During the Rollover Process
• [ ] Complete distribution forms accurately
• [ ] Choose direct rollover option
• [ ] Provide correct receiving institution details
• [ ] Submit all required signatures and documentation
• [ ] Save confirmation numbers and reference codes
Post-Rollover Tasks
• [ ] Monitor both accounts for fund movement
• [ ] Invest transferred funds in your new IRA
• [ ] Update beneficiary information
• [ ] File tax forms properly (1099-R and 5498)
• [ ] Establish ongoing review schedule
Emergency Contacts
• [ ] Save Fidelity customer service: 800-835-5095
• [ ] Note your new IRA provider's contact information
• [ ] Keep your tax professional's contact details handy
Conclusion
Rolling over your Walgreens 401(k) to a low-cost IRA is a smart financial move that can save you money on fees while giving you greater control over your retirement investments. By following this step-by-step guide, you can navigate the process confidently and avoid common pitfalls.
Remember that nearly 70 million Americans held over $11 trillion in 401(k) and defined contribution accounts as of Q2 2024 (Beagle Financial). Don't let your hard-earned retirement savings become part of the $1.65 trillion sitting in forgotten accounts.
Whether you choose to handle the rollover yourself or work with a fintech platform like Beagle that can automate each step, the key is taking action. Your future self will thank you for consolidating your retirement accounts and optimizing your investment strategy today.
The rollover process may seem daunting at first, but with proper preparation and the right resources, you can complete it successfully and set yourself up for a more secure retirement. Take the first step by logging into your NetBenefits account and beginning the process today.
Frequently Asked Questions
How do I access my Walgreens 401(k) through Fidelity NetBenefits?
Log into your Fidelity NetBenefits account using your existing credentials or create a new account if you haven't accessed it since leaving Walgreens. Navigate to the "Quick Links" section and select "Workplace Savings" to view your 401(k) balance and rollover options. You'll need your Social Security number and employment information to verify your identity.
What are the benefits of rolling over my Walgreens 401(k) to a low-cost IRA?
Rolling over to a low-cost IRA typically provides access to a broader range of investment options with lower expense ratios than employer plans. You'll have more control over your investments, potentially lower fees, and simplified account management. Additionally, you can consolidate multiple old 401(k) accounts into one IRA for easier tracking and management.
How many Americans have forgotten 401(k) accounts from previous employers?
According to recent data, as of May 2023, there were 29.2 million left-behind or forgotten 401(k) accounts holding $1.65 trillion in retirement savings. By mid-career, the typical American has three or more 401(k)s and many lose track of at least one of them, making rollover consolidation increasingly important.
Can I use fintech services like Beagle or Capitalize to help with my Walgreens 401(k) rollover?
Yes, fintech platforms like Beagle and Capitalize can streamline the traditionally paper-heavy rollover process. Capitalize is 100% free and focuses on digitally shepherding assets into an IRA of your choice, while Beagle charges a membership fee but offers additional services like hidden-fee analysis and robo-advisory portfolios. Both services aim to eliminate 'orphaned' retirement money from old employer plans.
What tax documentation do I need for a Walgreens 401(k) rollover?
You'll need your most recent 401(k) statement, Social Security number, and beneficiary information for the new IRA. The rollover process will generate a 1099-R form for tax reporting, but direct rollovers are typically not taxable events. Keep all documentation for your tax records, including confirmation of the completed rollover from both your old 401(k) provider and new IRA custodian.
How long does it take to complete a Walgreens 401(k) rollover online?
The online rollover process typically takes 2-6 weeks to complete once initiated. The actual transfer of funds usually occurs within 5-10 business days after all paperwork is processed and approved. However, the timeline can vary depending on your chosen IRA provider and whether you're doing a direct rollover or indirect rollover.