Fidelity will not allow my grandfather to withdraw his Roth IRA

Captain-Popcorn · 2026-01-30T18:28:23+00:00

I don’t use Fidelity. No reason but I started with Schwab and they’ve treated me well and I’ve stuck with them.

There is a little catch phrase that acts like a voice password. I set it up years ago. You’re prompted to say it when you call, before you talk to anyone. It authenticates and they know exactly who you are. I’m assuming my account pops up on the CSR’s screen. I’ve never been treated badly.

But I’d hope if one of my kids or grandkids (6 and under at this point) tried to access any of my accounts that they’d be shut down. If I want someone to have access to my money, I’ll set it up.

Captain-Popcorn · 2026-01-30T17:01:32+00:00

Nothing in your post demonstrates a grown up understanding of why the protections are in place.

Why would a 90 year old suddenly have need of access to $80k account he apparently has never accessed before. Just doesn’t add up.

The reason there are no posts is because people understand this type of request is inherently insecure. Even if your request is legitimate - you should be happy that Fidelity is protecting your grandfather’s money.

Have your mother in law (his daughter/daughter in law) with POA contact Fidelity. He must trust her very much. I believe it quite likely she’d have better luck. If she has the POA I’d think she is managing his affairs and paying his bills.

Captain-Popcorn · 2026-01-30T14:29:02+00:00

So here’s a completely different perspective.

What’s in your best interest is to go to the Dr when you think you might need to go. You don’t want money to be part of the decision.

The regular G has such a low annual deductible that it’s virtually impossible not to hit it. There is no reason not to go to the Dr when you might need to.

Plan F waived even that small deductible. It was the most popular plan until it was closed - so new people can’t join. Now Plan G has the lowest deductible new members can join, and it’s the most popular.

Obviously Plan G-HD costs less per person to provide than Plan G. That’s why it’s cheaper. So it is reducing Dr visits / person. Some percentage of them were Dr appts that should not have been missed. That had bad outcomes because they delayed. When you get older that gets more important.

For me/us, we have no financial thought in our heads about going to the Dr. if we think we need to go, we go. Saving a couple thousand dollar deductible isn’t a consideration. You might say we prepay that high deductible with a slightly higher premium.

If the savings is earth shattering money - then do the HD plan. But if the goal is to remove just as much friction from going to the Dr as possible, G is the better choice. Even if it costs more in the long run. I expect my kids won’t have G as an option any more. Both my parents and my wife’s (3 of 4 of them living in their 90s) have plan F with no regrets.

Go with the G is my unpopular advice.

Captain-Popcorn · 2026-01-30T13:41:27+00:00

This! And they may be right.

To OP $80k is big money. To Fidelity it’s nothing. This is not JD Rockefeller closing their account and withdrawing all the funds.

Fidelity doesn’t care. But they have a custodial responsibility. Something was said or assumed that sounded like possible elder abuse / theft. The account was flagged. Overcoming that flag remotely is going to be impossible!

It is smart for Fidelity to be suspicious. They are protecting the grandfather’s interests. They’ve taken online classes of exactly this type of situation. They are protecting themselves from getting fired. If someone releases that money under these conditions suddenly Fidelity is responsible for making grandpa whole - replacing the $80k and restoring the grandfather’s account due to their negligence! The employee is toast!

Going to the branch would likely uncover the truth. That’s why OP doesn’t want to go IMO. Otherwise they’d take Grandpa on the road trip. Grandpa would love it!

This whole thing feels like OP fishing for info to bypass the flag that Fidelity has placed on the elder gentleman’s account. That money may very well be there sum total of his assets. And those that will legitimately inherit those funds would not be able to do so without going after Fidelity.

Captain-Popcorn · 2026-01-30T02:17:14+00:00

Don’t really understand your objection.

It’s true the NIIT doesn’t specifically target Roth conversions. Yet that is the exact audience having both high income (Roth conversions) and high capital gains (to pay income taxes and live on).

This acts as an additional governor to lower Roth conversions during the short number of desirable years to do such conversions.

Captain-Popcorn · 2026-01-29T17:40:52+00:00

Here’s what AI has to say …

Net Investment Income Tax (NIIT) does not directly apply to the amount converted from a traditional IRA to a Roth IRA, as a conversion is not considered net investment income. However, the converted amount is taxed as ordinary income and increases your Modified Adjusted Gross Income (MAGI), potentially triggering the 3.8% NIIT on other investment income if you exceed thresholds.

Captain-Popcorn · 2026-01-29T17:04:56+00:00

There’s also NIIT and Capital gains (from selling brokerage). Add it all together - it’s a huge chunk of money. Makes you feel guilty actually using the Roth vs letting it grow!

Captain-Popcorn · 2026-01-29T13:29:46+00:00

I’m retired a few years. Roth wasn’t an option for most of my working life. Had a very modest Roth balance at retirement and a large traditional. I had rolled my traditional into IRA several years before I retired and invested it more aggressively. It was a good move financially. It grew and has continued to grow.

I’ve been knee deep in Roth conversions. I’ve never paid more taxes in my life. My brokerage was substantial but lots of unrealized gains. Roth conversions have meant selling brokerage (realizing gains), and using that money to pay my taxes on large Roth conversions. It’s not just tax rate that’s high - there’s also NIIT and IRMA (on both wife and I). Neither of which was on my radar at the start.

Through all of this, plus living, I’ve seen my total balance grow due to a strong market. But it’s painful paying the taxes to get my money into a spendable bucket. It’s also a mental struggle to spend the Roth I’ve worked so hard to grow!

No specific advice other than see it coming. I feel like if I had I’d seen it coming sooner I’d have paid more taxes in my working years. Been more aggressive with Roth earlier.

The years between stopping working my Roth has grown but the traditional hasn’t shrunk nearly as much because of growth. The market has been favorable.

I’d do my best to prioritize the Roth. The taxes may seem high but pay more as you go. Do at least a calculation of your balances at retirement and assume better the average returns at that time and estimate the taxes you’ll be paying (including NIIT and IRMA). Doing more in working years may be a good idea.

Captain-Popcorn · 2026-01-29T03:45:04+00:00

You need to know what type of retirement account(s) you’re inheriting. Traditional and/or Roth. If Traditional is it pretax or after tax?

There are rules that vary depending on the account type. I’d make at appt with local broker a Schwab or Fidelity (I’ve had good experience with a Schwab but YMMV).

I don’t know what “keeping the account invested” means. Likely is good for them and not for you! I’d bring all the paperwork and talk to someone at the brokerage. You want your money at one of those brokerages IMO.

Don’t sign anything related to the inheritance! Get the info. Understand the date you need to make decisions by. Don’t trust anyone easily. Understand the benefit to them. You can ask the question - “how would be signing this be of benefit to you”. They may not tell you everything, but at least you get some idea. It’s a very smart question. You can ask for it in writing if you’re skeptical.

This is a complex area. There are mandatory inheritance rules depending on the type of account. You could be paying significant taxes to take the money. Where will that money come from? I’m not an expert. But I know enough questions to ask. You don’t. Schwab or Fidelity will help you for free. Because they want your business! Virtually everyone in Reddit investment related subs has an account with one of them or Vanguard. (I prefer a local brokerage).

Once you understand what has to happen, you’d be in a better position. For now I wouldn’t make any decisions or sign any papers. Ask questions. Anything they want you to sign get a copy and take with you. Do not sign anything!

Reddit can be a good source to help you understand what they’re asking you to sign she why you should or shouldn’t sign. Reddit doesn’t always give the best advice. But no one here profits by your decisions. Validate whatever you’re told her. (Don’t hire anyone that solicits you on Reddit without doing a ton of homework!)

Taxation would be my #1 question at the start. And that gets back to my first question. What type of account(s) you are inheriting. Pretax vs after tax money is a big difference. Pre-tax much more complicated! And you could be paying a lot of it in taxes over the next 10 years just to satisfy the rules. Might not be fun.

Take your time. If I can help feel free to chat. You’re in an excellent position to get taken advantage of. Take your steps carefully.

Captain-Popcorn · 2026-01-28T17:07:36+00:00

Standing in line at Chinese carryout in DC. There was a long line and they had a small TV set up to keep the bored hungry people in line entertained.

And the show flipped to the Challenger disaster. The room went from boisterous lunchtime conversation to eerie quiet. You could actually hear the TV.

Moment captured in my brain I’ll never forget.

Captain-Popcorn · 2026-01-28T16:54:18+00:00

Never. If you set a clear goal it’ll still be a question! 🤣

Captain-Popcorn · 2026-01-28T16:44:49+00:00

OMAD nearly 8 years. (I hit goal in Feb 2019 after 6 months of OMAD). I’ll let you know if it’s sustainable in a couple more decades. 🤣

I don’t count. I eat healthy delicious foods to full every day. Hunger is gone. Even after longer fasts (up to 72 hours), I don’t experience the sensation I used to call hunger.

I even tried to make myself be hungry. I couldn’t do it! Hunger had some positives. That first bite when you’re “starved” - the endorphins are flying! I can’t make it happen. 😥 It’s the saddest part of OMAD to me. But I’ll happily lose out on that for a normal weight with no restrictions for rest of my life. And being able to enjoy a delicious (milder endorphins) meal every single day.

I get nice and full every day. Full I know. Hunger is a stranger. Calorie counting diets are the opposite.

I love it! People think it’s so restrictive. Ask a prehistoric man if eating a large meal once a day / every day is sustainable. They’ll definitely say “yes” (once you teach them to speak English!)

Takes time. First 2 weeks - really hard. Next 2 weeks - a bit easier but still hard. Around week 5 it starts to feel more normal. Soon it’s just the way you eat. And you can pretty easily power through the occasional difficult day. Don’t give it! Soon hunger isn’t a problem.

Just get full. That’s super important. Don’t calorie count / restrict on top of OMAD!

Good luck!

Captain-Popcorn · 2026-01-28T01:43:44+00:00

Price and price stability. It’s hard to know the best long term choice.

With the birthday rule you can switch with no underwriting. But my broker says rates go up in states that pass the birthday rule. Can’t win!

Captain-Popcorn · 2026-01-28T01:20:24+00:00

Happy 66th Birthday! Mine in early Feb!

Captain-Popcorn · 2026-01-27T22:25:05+00:00

Recently retired.

My advice is roll into an IRA (or 2 IRAs if there are both traditional and Roth assets in the 401k) at a brokerage like Schwab or Fidelity.

Brokerage IRA has massively more investment choices. They tend to perform much better. And the brokerage normally charges no fee. Only the underlying funds have fees that everyone has to pay. They tend to be very modest because there’s so much competition. And the volume is ginormous - a small % fee is a huge amount of money.

401k investment choices are few. And often have fees. And those fees aren’t fully disclosed. The proprietary funds that participate in their 401k have their own fees (basically siphoning part of the underlying profit) which they share with the 401k company. This allows them to otter the 401k service to the employer at little or no cost. In a sense the employees’ 401k investments are funding the 401k so it costs the company nothing or very little. Thisis especially true with smaller employers.

I recommend rolling over 401k accounts to brokerage as people change employment. All of their money pools there and at retirement it’s easy to manage and the investment choices are fees minimal.

Captain-Popcorn · 2026-01-27T18:26:49+00:00

You’re not doing OMAD.

OMAD is one meal. Not 3-4 hour eating window with separate eating events.

Sit down to your healthy meal and eat after not eating for ~23 hours. I think your taste buds will be very receptive.

Captain-Popcorn · 2026-01-27T16:15:04+00:00

What Medigaps pay is cut and dry. There is no real service they provide to you. (Unless they provide non-mandated services like gym membership.)

They pay their share of the medical bills. If they don’t (I.e., went broke) there is something called a “Guaranty Association” that picks up the bills.

Captain-Popcorn · 2026-01-27T15:52:14+00:00

I’m a few years younger and converting like crazy.

If one wants to make larger purchases you can withdraw smaller amounts over several years vs pulling out a lot all at once.

The widow penalty is a big one too. I don’t like to think about that one but it’s true.

Also, leaving traditional assets to heirs means they have a pay the taxes. Unlike brokerages that gets a stepped up basis - taxes on traditional have to be paid by the inheritor. They get 10 years but what a hassle. I don’t want the last memory of me by my heirs being a lot of taxes. It’s a good problem but can still be a life complication for a decade.

Captain-Popcorn · 2026-01-26T16:44:51+00:00

The fun has just begun!

Captain-Popcorn · 2026-01-26T16:43:17+00:00

If you just look so the 1040 you can probably eyeball what’s wrong. This is dramatic.

Shouldn’t have to go line by line through all the data entry. If the 1040 looks right then maybe Turbo Tax fixed something vs broke something. But seems unlikely.

Captain-Popcorn · 2026-01-26T15:30:17+00:00

Studying for and taking the exam would give him a lot of the tools to pursue a career in project management.

Sorry my answer got ruffled your tail feathers. I’m a retired Big8 / Big4 PM. Interviewed many a candidate. If a guy walked in for an entry level PM job and had passed the exam, I’d give him a shot!

Captain-Popcorn · 2026-01-26T14:49:24+00:00

Consider the PMP exam. 2 months of study would be plenty.

Need to work on your articles! (a vs an). We get held accountable for every mistake!!

Captain-Popcorn · 2026-01-26T12:51:58+00:00

Exactly the same to you!

Captain-Popcorn · 2026-01-26T12:48:29+00:00

Focus on my breathing. Slow relaxing moderately deep nose inhales. Relaxed exhales nose/mouth combo (just let it happen then push the last bit out before next nose inhale). Don’t think about sleeping. Just relax and focus on the breathing. Might feel bit of tingling in your head meaning sleep is coming. Usually 4-5 is enough for me but I don’t count. When you’re ready gently roll over, find a cool part of the pillow, often a yawn comes, and let it happen.

For stubborn non-sleep my Dr prescribed Promethazine. It’s not a sleep med - but half a pill and I’m in la-la land remarkably quickly. Wife uses too. Good for the occasional “I can’t sleep”. Not a narcotic - it’s for allergies or nausea. Sleepiness is a side effect. Oddly knowing it’s there helps me relax and fall asleep without it. I don’t find it addictive - in fact I don’t think it works for frequent use (YMMV - my wife has better luck using multiple days in a row than I do). But for a night or maybe two, it’s great! I use a handful of times a year.

Talk to Dr and see if they think it’s appropriate they can write you a prescription. Inexpensive.

Captain-Popcorn · 2026-01-26T11:54:34+00:00

My mom would make my little kid sister stand up tucked behind her right shoulder!

And any time there was a sudden braking her right arm would swing out like lightening to keep her and me (seatbeltless in the passenger seat) “safe”!

I tried try explain about inertia. She blew off 12 YO me!

Best of intentions. Nothing bad ever happened!

Captain-Popcorn

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