Yes! You can use AI to fill out Distribution — RMD Annual One-Time Payment

Users often leave the Plan Number blank or enter an incorrect/abbreviated employer name because they don't have the information readily available. Since this information is critical for Fidelity to identify the correct account, its absence or inaccuracy will lead to processing delays or outright rejection of the form. To avoid this, locate your plan number on a previous statement, by logging into fidelity.com/atwork, or by calling your plan sponsor before you begin filling out the form.

The form distinguishes between a 'Deferred RMD' (for your very first RMD, deferred from last year) and a 'Missed RMD' (for any other prior year). People frequently select the wrong option, which can lead to incorrect calculations and processing issues by Fidelity's system. Carefully read the definitions in Section 3 to ensure you select the correct option for your situation, as combining these incorrectly on one form is prohibited.

In Section 4, a user might select the 'Joint Life and Last Survivor Expectancy Table' without meeting the strict criteria that their spouse must be their sole beneficiary AND more than ten years younger. This error will cause the form to be rejected or, if processed, result in an incorrect RMD calculation. Unless you are certain you qualify, you should use the default 'Uniform Lifetime Table' to ensure accuracy and avoid delays.

Choosing the 'Self-Calculated' option in Section 4 places the full responsibility for accuracy on the participant. A common and costly mistake is miscalculating this amount and withdrawing less than required, which can trigger a substantial 25% IRS penalty on the shortfall. To prevent this, use one of the Fidelity-calculated options unless you are an expert or are intentionally taking a partial RMD to be aggregated with other plans.

The state tax withholding rules in Section 5 are complex and state-specific. For example, residents of states like NY, NJ, and PA must enter a specific dollar amount for withholding, as selecting the 'applicable rate' will result in zero tax being withheld. This mistake can lead to a large, unexpected state tax bill and potential underpayment penalties. Carefully read the instructions for your state of residence to ensure you make a valid election.

A simple typographical error when entering a bank account number for an Electronic Funds Transfer (EFT) in Section 6 is a frequent mistake. An invalid account number will cause the transaction to fail and default to a paper check sent via mail, significantly delaying your receipt of funds. Double-check all account and routing numbers for accuracy before submitting the form. AI-powered form filling tools like Instafill.ai can help validate such data formats to prevent errors.

If a participant is married and their plan requires spousal consent, failing to have Section 7 completed and notarized will render the entire form invalid. Participants are often unaware if their plan requires this, so they skip the section. To avoid rejection, confirm with your plan sponsor or Fidelity if spousal consent is necessary for your distribution before you submit the form.

The form requires a signature guarantee (not a simple notary) for distributions over $100,000, or for those over $10,000 involving a recent address change. People often misunderstand this requirement or confuse it with notarization, leading to form rejection and critical delays, especially near the year-end RMD deadline. Review the conditions in Section 8 carefully and visit a qualified financial institution for a Medallion signature guarantee if one is required.

Many plans, especially for former employees, require an authorized plan representative to sign off on the distribution in Section 9. Participants often overlook this and send the form directly to Fidelity, only to have it returned for the missing signature. This back-and-forth process can jeopardize your ability to take the RMD before the calendar year deadline. Always verify with your former employer or Fidelity if plan sponsor approval is needed.

The form references several supplemental IRS forms like the W-4P, W-9, or W-8BEN for specific tax situations, such as for non-resident aliens or those living abroad. It is a common oversight to forget to download, complete, and attach these separate documents. This omission will halt the processing of your request and can result in incorrect, often higher, mandatory tax withholding. Since this form is a non-fillable PDF, a tool like Instafill.ai can convert it to a fillable version and help manage the attachment of these necessary supplemental documents.