Yes! You can use AI to fill out Fidelity Advisor Transfer Due to Divorce—IRA

The form requires a certified original or copy of the divorce decree, meaning it must be stamped by a court clerk or judge. People often submit a standard, uncertified photocopy, which is not acceptable. This mistake leads to immediate rejection of the application and significant processing delays. To avoid this, obtain a certified copy from the court that issued the decree and ensure it contains all required details, such as account numbers and specific asset division instructions.

The divorce decree must explicitly state a 'transfer of assets' to be a non-taxable event per IRS rules. Many decrees use ambiguous terms like 'awarded to' or 'is the property of,' which Fidelity cannot accept. This forces the parties to go back to court to amend the decree, causing lengthy delays and legal costs. Ensure your legal documents use the precise 'transfer' language required by financial institutions for IRA divisions.

A Qualified Domestic Relations Order (QDRO) is used to divide employer-sponsored plans like 401(k)s, not IRAs. Filers often mistakenly submit a QDRO for an IRA transfer, believing it covers all retirement accounts. Fidelity will reject a QDRO for an IRA transfer, as the process is governed by a different section of the tax code. Always use a specific divorce decree or settlement agreement for IRA transfers, not a QDRO.

If the former spouse receiving the assets does not have an existing, compatible IRA at Fidelity, a new account application must be submitted along with this transfer form. This is a frequently missed step that brings the entire process to a halt until the new account is opened. Always verify if the receiving party has a suitable account and, if not, complete and include the Fidelity Advisor IRA Application with the submission.

The instructions clearly state that transfers must be between the same types of IRAs (e.g., Traditional to Traditional, Roth to Roth). A common error is attempting to transfer assets from a Traditional IRA to a former spouse's Roth IRA using this form. Such a transfer would be a taxable conversion event and cannot be processed as a simple transfer, leading to rejection and potential tax complications. Double-check that both the source and destination accounts are of the same type.

This form requires signatures from both the original IRA owner (relinquishing party) and the former spouse (receiving party) to authorize the transfer. It is a common oversight to submit the form with only one signature, rendering it incomplete. This requires the form to be sent back for the missing signature, delaying the asset transfer. Carefully review Section 5 to ensure both parties have signed and dated the form before submission.

For transfers valued over $100,000, a signature guarantee is required for the relinquishing IRA owner. People often confuse this with a notary public stamp, which is not acceptable, or they overlook the requirement entirely. A signature guarantee must be obtained from an eligible financial institution like a bank or credit union. Submitting without a required guarantee will result in the form being returned.

In Section 4, filers must specify exactly what is being transferred, whether it's the full account or a partial amount with specific funds and percentages or dollar values. Simply checking 'Partial Transfer' without detailing the assets is a frequent mistake. While the form defaults to a pro-rata transfer if unspecified, this may not align with the divorce decree, causing disputes. To avoid this, ensure the instructions on the form precisely match the legal agreement. AI-powered tools like Instafill.ai can help prevent this by validating that all required fields in the section are completed.

The transfer details entered in Section 4 of the form must exactly mirror the instructions laid out in the certified divorce decree or settlement agreement. Any discrepancy, such as entering a different percentage or fund on the form than what is specified in the legal document, will cause a processing failure. Fidelity must follow the legal order precisely, so any inconsistency requires correction and resubmission. Always cross-reference the form against the decree before signing.

Simple data entry errors, such as transposing digits or omitting the full account number for either the relinquishing or receiving party, are very common. Since this form is a non-fillable PDF, manual entry increases the risk of typos. An incorrect account number will prevent Fidelity from identifying the accounts, stopping the transfer immediately. Using a tool like Instafill.ai can convert the PDF into a fillable form and help auto-populate and validate information to ensure accuracy.