Yes! You can use AI to fill out Fidelity Investments 403(b) Beneficiary Designation

A frequent error is when the assigned percentages for the primary or contingent beneficiary groups do not sum to exactly 100%. This often happens due to a simple miscalculation or when adding or removing a beneficiary. An incorrect total will cause the form to be rejected, delaying the designation and leaving the account with its prior beneficiary status until the form is corrected. To prevent this, carefully double-check that the percentages for each group (primary and contingent) separately add up to 100%. Tools like Instafill.ai can automatically validate these totals during data entry.

If a married participant designates someone other than their spouse for 50% or more of the account, the spouse must sign the consent section. People often miss this requirement, or they get the signature but fail to have it witnessed and stamped by a notary public or plan representative. This invalidates the non-spouse designation, which could result in the spouse automatically receiving benefits contrary to the participant's wishes. Always complete Section 3 if you are married and naming a non-spouse primary beneficiary.

Applicants often forget to provide critical details for each beneficiary, such as a full legal name, Social Security Number, and date of birth for an individual, or the exact trust name and creation date for a trust. This missing information makes it difficult for Fidelity to identify and pay the correct person or entity upon the participant's death. This leads to significant processing delays and potential legal hurdles for your heirs. Carefully fill every required field for each beneficiary you list.

The participant's signature and date in Section 4 are what legally authorize the entire designation. It is a common oversight to miss this final step after filling out all the beneficiary details. An unsigned or undated form is invalid and will be rejected, meaning your previous beneficiary designation (or the plan's default rules) will remain in effect. Always perform a final check for your signature and the current date in Section 4 before submission.

The form explicitly states that a primary beneficiary cannot also be named as a contingent beneficiary. The purpose of a contingent beneficiary is to inherit assets only if all primary beneficiaries have passed away before the account holder. Listing the same person in both roles is logically inconsistent, will cause processing errors, and leads to the form's rejection. Ensure your contingent beneficiaries are entirely different individuals or entities from your primary beneficiaries.

The form has distinct fields for an 'Individual' beneficiary versus a 'Trust Name' and for a 'Social Security Number' versus a 'Tax ID Number.' A common mistake is entering a trust's name in the individual field or an individual's SSN in the Tax ID field. This data mismatch will cause the form to be flagged for correction, delaying its acceptance. Pay close attention to the labels and provide the correct information in the corresponding field for each beneficiary type.

When naming more than three beneficiaries, the form requires attaching a separate, signed, and dated paper. People often forget to sign and date the attachment, or they try to squeeze extra names into the form's margins. An improperly attached addendum is not legally valid, and those beneficiaries will not be recognized by Fidelity. Ensure any attached sheets are clearly labeled with your information and include your signature and the date.

A critical misunderstanding is that divorce automatically removes an ex-spouse as a beneficiary. As the form's instructions clarify, a prior designation remains valid until a new, completed form is submitted. Failing to update your beneficiaries after a divorce could result in your ex-spouse inheriting your retirement account, even if you have remarried. Always submit a new Beneficiary Designation form after major life events like divorce, marriage, or death of a beneficiary.

Forgetting to check the 'Single' or 'Married' box in Section 1 is a simple but impactful mistake. This information is crucial for the plan administrator to determine whether the spousal consent rules apply to your designations. Leaving this field blank creates ambiguity and will likely cause the form to be returned for completion, halting the entire process until it is clarified.

Many people print this form and fill it out by hand, which can result in illegible handwriting. Unclear names, numbers, or addresses can lead to data entry errors by the processing team, potentially causing future complications for your heirs. To ensure clarity, use the digital submission method or a fillable PDF. If only a non-fillable PDF is available, a service like Instafill.ai can convert it into a fillable version, ensuring your entries are typed, legible, and correctly formatted.