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Contribution deposit options for Fidelity
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26 Replies
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It looks like the non-Prototype solo 401k (investment-only) accounts held with Fidelity do not permit EFT transfers for contributions. Is anybody depositing regularly into a Fidelity account without having to mail physical checks? My wife and I are account holders and we were planning to make 12 equal monthly salary deferral contributions throughout 2024….would that mean that I have to write 2 checks, fill out and mail (2) contribution forms every month throughout the year??? Hopefully there is a simpler method for managing contribution funds.
If I’m withholding contributions each monthly payroll cycle, do I necessarily have to send monthly contribution checks to Fidelity or can I deposit them in quartery aggregates? Thanks for any advice.
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Regarding making electronic deposits via ACH to the Fidelity account (so you could set up an automatic transfer with the personal/business bank account from which the funds will be transferred):
- Fidelity accepts ACH deposits to the brokerage account for your Solo 401k
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An ACH transfer would need to be set up to send to Fidelity using the instructions in the link below.
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Hey, reviving an old thread to make sure I don’t screw this up.
I plan to make contributions from Bank of America to my Fidelity non-prototype accounts via ACH initiated from BofA.
1. Can the Roth component be made with employer contributions or is it employee only? If employee only, I believe I can make single deferrals and not be required to do monthly.
2. When making the ACH contributions, I simply fill out a contribution form and keep for my records (maybe with a printed copy of the ACH contribution confirmation attached), correct?
Thanks!
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In addition to requesting the conversion over the phone with Fidelity, the form listed on the following page may also be submitted to Fidelity to have the funds converted.
If converting to the Roth Solo 401k, see the following: https://www.mysolo401k.net/solo-401k/how-to-process-a-fidelity-investments-voluntary-after-tax-of-solo-401k-funds-to-a-roth-solo-401k/
If conveting to a Roth IRA at Fidelity, see the following: https://www.mysolo401k.net/solo-401k/how-to-process-a-fidelity-investments-conversion-of-voluntary-after-tax-solo-401k-funds-non-prototype-account-to-a-fidelity-roth-ira/
Once the funds have been converted, make sure to also complete our online conversion form if you are a client of My Solo 401k Financial, so that we can issue the Form 1099-R to report the conversion. The forms can be found on the following page. https://www.mysolo401k.net/learn/forms/
mysolo401k.net
My Solo 401k Financial offers self-directed Solo 401k, IRA LLC & ROBS 401K Retirement Plans. Learn about How to Process a Fidelity Investments Conversion of Voluntary After-Tax of Solo 401k Funds to a Roth Solo 401k
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I was dealing with this as well and just returned from a visit to a Fidelity branch. You can’t EFT, you can deposit a check at a branch or mail it, and you can set up a brokerage account … link your bank … transfer from bank to brokerage … transfer from brokerage to non-prototype.
I did receive instructions from MySolo team regarding the ACH but I don’t really understand it and when I ask Fidelity, they are confused also.
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Are you pushing the ACH from your external bank? I’ve made 3 automatic/recurring ACH deposits pushed from Bank of America into my non-prototype accounts (both pre-tax and Roth) and have not had an issue. 6 transactions between the two accounts.
Bank of America charges me $1 per transaction with 3 business days as the turnaround. If I wanted it more quickly (1 business day), they charge $5 per transaction.
I think Fidelity sees these ACH transactions initiated from outside banks as direct deposits, which they allow.
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Thank you for your reply. Yes pushing from my business bank…bluevine. I was told ACH isn’t available for non prototype accounts by fidelity when I called and inquired about my deposit being rejected. But….after I posted yesterday I logged into my bank account where it said the ACH was delivered. It’s not in my fidelity account (and not in my business bank account) and all the account numbers and names from my checks are correct with my bank. Now Fidelity says to wait 2-4 business days for the deposit to go into my account. So maybe it worked? My bank says it was deposited 8/7/24. I’ll find out next week and I am assuming if it does get rejected my bank will get the money back into my account. Fingers crossed it works. So much easier than writing and mailing checks each month.
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Hi Rita, I have Bluevine as well. Can you share how you were able to ACH push funds from Bluevine into Fidelity Non Prototype 401k? I tried through the Bluevine website to add Fidelity as an External Account, but there was only an option for verification through Plaid with user ID and password, and that didn’t work. I couldn’t find an option in the Bluevine website to manually input the routing number and account number for Fidelity. Did you add Fidelity as a payee? Or did you have to contact Bluevine support to have them add Fidelity?
Regarding your other question, Fidelity told me that to transfer money from Fidelity brokerage accounts into Non Prototype accounts, it’s only possible through phone by calling Fidelity Retirement 800-544-5373. And you can only transfer funds when it’s all Settled. You can see whether it’s Settled in the Fidelity website under Balances.
Thanks in advance if you could please share more details on how to add Fidelity to enable push ACH from Bluevine.
Thanks!
Jess V
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Just an update…..I checked with bluevine and my deposit was sent and received by fidelity. As I was sitting here on the phone with fidelity, I checked my account numbers for the 15th time on my bluevine acct and found that I entered a 114 instead of a 144 for my account number. So fidelity found the deposit and it will be in my account by next week. They had to find my account and match it because I messed it up. I would guess the problem is 99.9% user error in situations like this. So yes Bluevine: add a payee….make sure the account number is correct..then send the money. Simple as that! You can set up automatic payments through Bluevine and their ACH services are free! Saving has just been made 100% easier for me now.
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HI Eric,
When setting up the ACH with your bank, is it a wire or bill pay? If bill pay, are you making Fidelity Investments your vendor or the name of your non-prototype trust. So far I’m a little stuck on what to do here; I have the ACH instructions with routing numbers etc but have been a bit lost on where to go to plug those in. I’m tryin to help my wife, Wells Fargo account.
best!
Mike
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With Bank of America, there is a Wire/ACH transfer option. I listed my name and in the description I put Solo 401(k): Pre-Tax and Solo 401(k): Roth. It’s set to automatically deposit my employee contribution monthly on the 17th. I have to remember to print the transaction receipts and attach it to a contribution form that I keep for my own records in case of auditing.
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No, I haven’t tried that. I’ve only direct deposited from Bank of America or did mobile/check deposits.
Regarding ACH from Bank of America, BofA has an option to do in 1 business day or in 3 business days. I chose the 3 business days ($1 vs $5 per transaction). It usually posts to my Fidelity account around 4-5 business days.
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I do for most of my investments. You can manage dividend reinvestment per eligible investment for each account.
Account Features > Dividends & Capital Gains
Here is a direct link: https://digital.fidelity.com/ftgw/digital/reinvestment/
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Thank you! This is good to know. So, when you were automating everything, you’d have ACH push from your bank sending money automatically to your Fidelity Solo 401K on the 17th, then on let’s say the 23rd of every month, you had the recurring investments feature buy whatever mutual funds/ETFs you wanted it to buy, right?
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Yes… it was actually 10 days after the deposit push (because Bank of America says 3 business days, so I wanted to make sure it didn’t try to invest if there was a delay).
You can set up automatic investments with Fidelity here: https://digital.fidelity.com/ftgw/digital/recurring-activity/
I followed Fidelity Monitor & Insight’s portfolios so I had it set to automatically invest with their Select portfolio. Unfortunately, this is the last year they are offering their newsletter so I’ve gotten away from following their model.
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Thank you so much! I feel like this should be a pinned post. Maybe I’m the only one here that cares about automated funding and investing, but it would be a deal breaker for me if I couldn’t do these things. Nice to know it is possible! I don’t want to do anything crazy with the automated investing. I simply just want to buy a Target Date Index Fund or a Boglehead Allocated Portfolio.
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Edit: I called a second time and this time the rep confirmed with back office and it IS a feature available in non-prototype accounts. I’m confused. I think if you say it’s still there for you, I’ll just go for it lol
🙁 So, I called Fidelity just to make sure that non-prototype, investment-only accounts still had the automatic investing feature and the rep at the Retirements Team that it was recently updated in December that the non-prototype accounts would no longer have the automatic investing feature. I wonder if all accounts are grandfathered in to have them, but new accounts would not have them.
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I didn’t use the autofunding from Fidelity side. It was pushed from Bank of America to Fidelity via wire, and I had Fidelity set to invest that amount of money deposited each month into various mutual funds. It worked like a champ for 2 years without any issue at all. January was when I stopped autoinvesting. (I had to change the amount each year due to increased contribution limits.)
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