Starting May 21, you will have the opportunity to choose investments from the new investment lineup at Fidelity. All future contributions will be directed to Fidelity in January 2019.
Option #1: Select investments for future contributions from the new investment lineup
- If you are a Fidelity participant, select investments from the new investment lineup at Fidelity
- For non-Fidelity participants, direct contributions to Fidelity and invest in the new investment lineup before January 2019.
Two step process:
- Change your payroll deduction to redirect your contributions to Fidelity before January through Retirement Manager
- Select investments from the new investment line up at Fidelity
Contributions and elections to the new investment lineup at Fidelity will be effective with the first contribution made to your account following your vendor change and investment election.
Option #2: Take no action – Future contributions will be redirected to Fidelity
- In January 2019, all contributions will automatically be directed to Fidelity.
- If you do not select investment options from the new investment lineup at Fidelity, your contributions (both payroll deductions and Duke’s contributions) will be invested in the appropriate age-based Vanguard Target Retirement Date Fund in January 2019.
- After your future contributions are redirected to Fidelity in January 2019, you will have the ability to change your investment options through Fidelity at any time.
All mutual fund account balances will be transferred to the new investment lineup in January 2019 according to the predetermined investment option mapping strategy. These are your options if you do not want your mutual fund account balances to be transferred according to the mapping strategy:
Option #1: Move your current account balance to Fidelity and invest in the new investment lineup before January 2019.
- Contact Fidelity at 800-823-0172 for instructions and the necessary paperwork for a plan-to-plan transfer.
- For a plan-to-plan transfer, you are liquidating your account balance from one vendor and repurchasing funds at Fidelity. There are no taxes or penalties for this type of transfer.
- If you already have a Fidelity account (and are using funds that are not in the new investment lineup), you may move your current investments to the new investment lineup.
If you are making voluntary contributions to the plan or receiving Duke’s contribution, remember to also change your payroll deductions to redirect future contributions to Fidelity.
Option #2: Open a Self-Directed Brokerage Account (SDBA)
- Funds that are not in the new investment lineup may be available in the new self-directed brokerage option (SDBA).
- You have a one-time option to transfer in-kind all of your eligible Fidelity or Vanguard balances that are not in the new investment lineup into the same fund(s) in a self-directed brokerage account. To learn more, click here.
- Opening a self-directed brokerage account serves as a request to transfer in-kind all eligible balances in mutual funds at Fidelity and Vanguard into a SDBA in January.
- TIAA and VALIC mutual funds may also be transferred to the SDBA but these cannot be transferred in-kind.
- Contact Fidelity at 1-800-823-0172 or visit Fidelity.com/duke for more information about SDBA transfers.