How to Transfer a Roth IRA from Betterment to Fidelity

Transferring your Roth IRA from Betterment to Fidelity might sound complicated, but with the right steps, the process is simple. Whether you’re consolidating retirement accounts or seeking broader investment options, a direct transfer (e.g., trustee-to-trustee) helps ensure a smooth, tax-free transition.

At Carry, we want to make financial decisions feel more manageable, even if you’re handling them outside our platform.  This guide breaks down the steps to transfer your Roth IRA from Betterment to Fidelity smoothly and penalty-free. Please note that while we try to provide the most up-to-date information, these processes are subject to change without notice, so be sure to check with your provider before moving forward. 

Quick Transfer Checklist

Before we get into the full breakdown, here’s a high-level summary of what to expect:

Step 1: Get Your Info Ready

A smooth transfer starts with getting organized. You’ll need:

✅ Your Betterment Roth IRA account number
✅ A recent IRA statement
✅ Government-issued ID (e.g., driver’s license or passport)
✅ Your Social Security Number (SSN)
✅ Active Fidelity account login details
✅ Updated contact information for both providers

✏️ Hypothetical Example: Lisa, a freelance designer, wants to move her Roth IRA from Betterment to Fidelity to access more investment options. She gathers her documents, logs into Fidelity, and confirms her Roth IRA is open before starting the transfer.

Step 2: Go with a Direct Transfer

The easiest and safest way to move your Roth IRA is through a direct trustee-to-trustee transfer. This means Fidelity works directly with Betterment to move your funds — you never receive the money yourself, which keeps everything tax-free.

Here’s what to do:

✅ Log into your Fidelity account
✅ Navigate to “Transfer an Account”
✅ Choose Betterment as the current provider
✅ Select Roth IRA as the account type
✅ Complete Fidelity’s online transfer form
✅ Confirm that the transfer is marked as “direct”

📝 Tip: Avoid selecting a “rollover” or any method where you take possession of the funds — that could trigger taxes or early withdrawal penalty.

Step 3: Know What to Expect

Timeline: Most Roth IRA transfers can take five to ten business days, depending on how complex your investments are and how quickly both providers respond.

Fees:

If you sell and rebuy investments, there may be a short period when you’re out of the market. Keep that in mind if timing matters to you.

📝 Pro Tip: Hold off on making additional contributions while the transfer is in progress — it can complicate the process.

Step 4: Avoid Tax Complications

Good news — as long as the transfer is Roth IRA to Roth IRA and handled as a direct trustee-to-trustee transfer, you won’t trigger taxes or penalties.

📝 Important Tip: Keep any transfer confirmation or final statements for at least three years, just in case you need them for tax purposes later.

Step 5: Wrap It Up and Double-Check

Once the transfer is complete:

✅ Log into your Fidelity account and confirm your full balance has arrived
✅ Review your investments and rebalance if needed
✅ Update or reassign beneficiaries on your Fidelity account

Final Thoughts on Your Roth IRA Transfer

Transferring your Roth IRA from Betterment to Fidelity is a straightforward process that can be completed with careful planning and attention to detail. The key takeaways are simple: opt for a direct transfer to minimize tax complications, ensure you have all necessary documentation ready, and verify your account details with both financial institutions.

Remember that the entire transfer typically takes five to ten business days and should be a non-taxable event when executed correctly. Take time to review your investment holdings and be prepared for potential minor adjustments during the transition.

Next steps include:

✅ Gathering required account documentation

✅ Initiating the transfer through Fidelity’s platform

✅ Monitoring the transfer process to ensure a smooth transition

📌 Also Read:

What Can I Invest In With a Roth IRA?

Roth IRA Conversions: Definition, How it Works, Eligibility Rules

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Disclaimer:

The Carry Learning Center is operated by The Vibes Company Inc. (“Vibes”) and contains generalized educational content about personal finance topics. While Vibes provides educational content and technology services, all investment advisory services discussed on this website are provided exclusively through its wholly-owned subsidiary, Carry Advisors LLC (“Carry Advisors”), an SEC registered investment adviser. The information contained on the Carry Learning Center should not be construed as personalized investment advice and should not be considered as a solicitation to buy or sell any security or engage in a particular investment, accounting, tax or legal strategy. Vibes is not providing tax, legal, accounting, or investment advice. You should consult with qualified tax, legal, accounting, and investment professionals regarding your specific situation.

The accounts, strategies and/or investments discussed in this material may not be suitable for all investors. All investments involve the risk of loss, and past performance does not guarantee future results. Investment growth or profit is never a guarantee. All statements and opinions included on the Carry Learning Center are intended to be current as of the date of publication but are subject to change without notice.

To access investment advisory services through Carry Advisors, you must be a client of Vibes on an eligible membership plan. For more information about Carry Advisors’ investment advisory services, please see our Form [ADV Part 2A] (https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=916200) brochure and [Form CRS] (https://reports.adviserinfo.sec.gov/crs/crs_323620.pdf) or through the SEC’s website at [www.adviserinfo.sec.gov] (http://www.adviserinfo.sec.gov/).