Default to EFT for Deminimis & Required Minimum Distributions

Fidelity is modernizing the way participants receive their money from automatic payments, RMD and Deminimis cash outs.

Overview

We are pleased to announce an update to our automatic distribution process, effective Spring 2025. Previously, for any automatic Deminimis distributions and Required Minimum Distributions (RMDs), Fidelity would send a check to the address on file. With this new enablement, if a participant has a valid bank account on file, then we will automatically default the distribution to be sent via EFT instead of a check. Participants who do not have a valid bank account on file will still receive their distributions via check.

New Functionality and Features

With this update, participants can expect:

• To receive money in 2-3 business days via EFT instead of 7-10 business days via check
• A new communication sent on the date of distribution notifying them that money is on the way and whether it will be sent via EFT or check
• Less outstanding and lost checks

Enablement

This new feature will automatically be turned on for any plan that already has EFT enabled and no further action is required on your part.

If you would like to learn more about this enhancement, please contact your Fidelity representative.