Yes! You can use AI to fill out Fidelity Investments Distribution Form

Applicants often mistakenly provide a notarized signature when a Medallion signature guarantee is required for large distributions (over $100,000) or address changes. A notary only verifies identity, while a signature guarantee protects against fraud by having a financial institution accept liability. This error leads to immediate rejection of the form and significant delays. To avoid this, verify if a signature guarantee is needed in Step 8 and obtain it from a qualified bank or brokerage firm, not a standard notary public.

Married participants often forget to obtain their spouse's signature, or the signature is not properly notarized. The form requires the spouse's signature in the presence of a notary (or plan representative) for most distribution types, and the notary must include their seal and commission expiration date. An incomplete spousal consent section makes the form legally invalid and will cause it to be returned, halting the distribution process until corrected.

If a participant provides a new address on the form, Fidelity imposes a 15-calendar-day hold on processing the distribution as a security measure. People often overlook this detail and are surprised by the delay in receiving their funds. To avoid this, either use the existing address of record or, if an address change is necessary and funds are needed quickly, provide a Medallion signature guarantee as specified in Step 8 to waive the holding period.

Many people do not realize that if they receive an eligible rollover distribution as a check made out to them (instead of a direct rollover to another retirement account), Fidelity is legally required to withhold 20% for federal taxes. They may incorrectly try to elect no withholding, not realizing it's mandatory. This results in receiving a smaller check than anticipated. To avoid surprises, plan for this 20% reduction or choose a direct rollover to defer taxes.

Participants, especially former employees, frequently assume they no longer need their old employer's approval for a distribution and skip Step 9. However, many plans require the plan sponsor's signature regardless of employment status. Submitting the form without a required signature will cause it to be rejected. Before submitting, always call a Fidelity specialist or your former employer to confirm if this approval is necessary.

When requesting a partial withdrawal from specific funds, people often forget to include the required five-digit fund numbers. Without this information, Fidelity does not know which assets to liquidate, making the request impossible to process. This data entry error will cause the form to be returned for completion. To prevent this, locate the fund numbers on your statement or the Fidelity website before filling out the form. AI-powered tools like Instafill.ai can help flag missing required fields like this.

The instructions clearly state that financial hardship distributions cannot be directly rolled over to another retirement account. However, participants in distress may overlook this rule and incorrectly select the direct rollover option in Step 4. This conflict in instructions will cause the form to be rejected. It's crucial to read the limitations for your distribution reason; for hardships, you must take a cash distribution subject to potential taxes and penalties.

For very large distributions, the Medallion signature guarantee must have a letter prefix that corresponds to the transaction value (e.g., prefix 'D' for up to $250,000). A common error is obtaining a guarantee with a prefix that is too low for the distribution amount. This will result in the form being rejected for insufficient liability coverage. To avoid this, inform the guaranteeing institution of the estimated distribution amount so they can apply the correct prefix.

During a rollover, the form defaults to including after-tax money unless the participant explicitly checks a box to exclude it. People often miss this choice, which can have tax implications. If after-tax money is rolled over, the participant must track that basis to avoid being taxed on it again in the future. To avoid this, make a conscious decision in Step 4 and keep detailed records if you choose to roll over the after-tax portion.

A simple but frequent mistake is failing to check a box in Step 2 to indicate the reason for the distribution, such as separation from service or disability. Federal law and plan rules require a valid reason for any distribution. An omission in this section renders the form incomplete and guarantees it will be sent back for correction, delaying the entire process. Since this form is a non-fillable PDF, a tool like Instafill.ai can convert it to a fillable version and use AI to help ensure all required fields are completed before submission.