Yes! You can use AI to fill out Automatic Withdrawals—Defined Contribution Retirement Plan

This form is exclusively for Self-Employed 401(k), Profit Sharing, or Money Purchase Plans. A frequent error is using it for other accounts like Traditional IRAs, Roth IRAs, or SEP IRAs, which require different forms. This mistake leads to immediate rejection and processing delays, potentially causing the account holder to miss important deadlines. To avoid this, carefully read the form's title and instructions, which specify the eligible account types, or use a tool like Instafill.ai that can help identify the correct form for your specific account.

In Section 2, users often select an incorrect reason, such as 'Normal' when they are under age 59½, or misunderstand the criteria for 'Disability'. This choice has significant tax consequences, as selecting 'Severance from employment' for an early withdrawal can trigger a 10% IRS penalty. To prevent this, verify your age and employment status against the definitions provided and consult a tax advisor if unsure. Using an intelligent form filler can also help by flagging potential discrepancies based on your date of birth.

When choosing 'Fixed Amount/Percentage Distributions', users often make calculation errors. Common mistakes include listing percentages that do not total exactly 100% or specifying fixed dollar amounts from various funds that do not add up to the total withdrawal amount requested in Section 3. These inconsistencies will halt the request until a corrected form is submitted. To avoid this, double-check your math or use a service like Instafill.ai, which can automatically perform calculations and validate that totals match across different sections.

Section 8 requires signatures from both the Plan Administrator and the Plan Participant, but it is common for one of these to be missed. Since the account owner is often both the administrator and participant for a self-employed plan, they may mistakenly sign in only one spot. An incomplete signature section renders the form invalid, causing it to be returned and delaying the withdrawal. Always review Section 8 carefully to ensure all required signature and date fields are completed by the appropriate parties.

For married participants with certain plan types (e.g., Money Purchase Plans), spousal consent for non-RMD distributions is mandatory and must be notarized in Section 8c. People often overlook this requirement because it's not needed for RMDs or other plan types. Failure to provide a notarized spousal signature when required is a serious compliance issue that will prevent the distribution from being processed. It is crucial to determine if your plan and distribution type necessitate spousal consent before submitting the form.

The form requires a Medallion signature guarantee for specific situations, such as per-payment amounts over $100,000 or distributions to a third-party account. A common and critical error is submitting a standard notary stamp instead, which is not an acceptable substitute. This mistake results in rejection of the form, as a Medallion guarantee is a special certification of your signature provided by a financial institution that accepts liability for any forgery. Always confirm which type of validation is needed and obtain it from a participating bank or credit union.

In Section 7, users often misunderstand the complex tax withholding rules. For example, they may attempt to elect 0% federal withholding on a distribution that is subject to a mandatory 20% withholding (i.e., an eligible rollover distribution not taken as an RMD). This error will be corrected by Fidelity to comply with IRS rules, but it may result in an unexpected tax liability for the user. To avoid surprises, carefully read the tax notice and instructions, or use a tool like Instafill.ai which can help apply the correct default withholding rules based on your distribution type.

When selecting Electronic Funds Transfer (EFT) in Section 6 for the first time, the form requires attaching a voided check, preprinted deposit slip, or bank statement. A frequent oversight is filling out the bank details but forgetting to include the required physical documentation. Without this proof of account ownership, Fidelity cannot establish the EFT instructions, and will default to mailing a check to the address of record, delaying your access to the funds. Always ensure all required attachments are included with your submission.

In Section 2, users may check 'CHANGE' or 'DELETE' an existing plan but fail to write in the 'Type of Automatic Withdrawal Plan' they wish to modify (e.g., 'Fixed Dollar Amount'). Similarly, in Section 3, a user might check both 'Fixed Dollar Amount' and 'Required Minimum Distribution (RMD)' when only one is allowed. This ambiguity forces the processing agent to either guess or return the form for clarification, causing delays. Ensure you select only one option where required and provide all necessary details for the action you are requesting.

When filled out by hand, critical information like account numbers, SSN/TINs, or dollar amounts can be illegible or contain transposed digits. The form specifies using CAPITAL letters, but this is often ignored. These data entry errors can lead to processing failures, payments being sent to the wrong account, or incorrect tax reporting. To prevent this, it is best to type directly on the screen. If you only have a non-fillable PDF, a tool like Instafill.ai can convert it into a fillable version, ensuring all entries are clear, correctly formatted, and validated.