How to Transfer a SEP IRA from Betterment to Fidelity

Many self-employed professionals and small business owners consider transferring their SEP IRA to access lower fees and broader investment choices. If you’re looking to move your SEP IRA from Betterment to Fidelity, the transfer process is relatively straightforward when you understand the steps. 

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 SEP 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

Here’s a quick overview of what to expect when transferring your SEP IRA from Betterment to Fidelity:

Preparing For the Transfer

Moving your SEP IRA from Betterment to Fidelity requires careful planning and understanding of the transfer process. Before initiating the transfer, take time to review your current investment portfolio and goals.

Direct Transfers

A direct transfer offers the most straightforward method for moving your SEP IRA between providers. With this approach, you’ll avoid potential tax complications and ensure a smooth transition of your retirement funds. Fidelity and Betterment both support direct transfers, meaning the funds move electronically between financial institutions without you handling the money directly.

The direct transfer process typically involves contacting Fidelity and authorizing them to request your SEP IRA funds from Betterment. This method eliminates the risk of accidental tax consequences and prevents potential early withdrawal penalties that could impact your retirement savings.

Step 1: Get Organized

Preparing your documentation in advance streamlines the transfer process. To get started, prepare the following:

✅ Your current Betterment SEP IRA account number

✅ Government-issued photo ID

✅ Most recent SEP IRA statement from Betterment

✅ Fidelity account information

✅ Social Security number or Tax ID

✅ Current contact information for both financial institutions

Step 2: Choose a Direct Transfer

The easiest and safest way to move a SEP IRA is through a direct transfer, also known as a trustee-to-trustee transfer.  This ensures that Betterment sends your SEP IRA funds directly to Fidelity without you ever touching the money, which helps avoid any unintended tax consequences or penalties.

To initiate a direct transfer:

✅ Log into your Fidelity account
✅ Go to “Transfer an Account”
✅ Choose Betterment as the current provider
✅ Complete any digital paperwork required
✅ Confirm the account you’re transferring is a SEP IRA

📝 Important Note: Always make sure it’s marked as a direct transfer or trustee to trustee — not a rollover or distribution. A misclassified transfer could potentially trigger a taxable event.

Step 3: Understand the Fees and Timeline 

SEP IRA transfers between Betterment and Fidelity take five to seven business days after submission of all required documents. The timeline may vary based on the complexity of your investment portfolio and the responsiveness of both financial institutions.

✏️ Hypothetical Example: If you submit a transfer request on a Monday, your funds may arrive by the following Monday or Tuesday, assuming no delays.

📝 Important Note: Some investments at Betterment might need to be sold before the transfer, especially if they aren’t supported at Fidelity. This may result in a brief period when you’re out of the market.

Step 4: Watch for Tax Implications

The good news: direct transfers between SEP IRAs are generally not considered taxable events. The IRS allows these transfers without triggering income tax or early withdrawal penalties, provided the transfer follows proper procedures. Maintaining documentation of the transfer is crucial for your tax records.

📝 Important Tip: Save all transfer confirmations and statements. The IRS recommends keeping them for at least three years in case of any questions during tax season.

Step 5: Confirm the Transfer is Complete

Once the funds have arrived in your Fidelity SEP IRA:

✅ Verify that the full balance transferred
✅ Review any liquidated investments, if applicable
✅ Update beneficiaries on the new account
✅ Ensure your new portfolio matches your retirement goals

Final Thoughts on Your SEP IRA Transfer

Transferring your SEP IRA from Betterment to Fidelity is a strategic process that requires careful planning and attention to detail. 

Just remember:

✅ Betterment charges a $75 transfer fee

✅ Fidelity generally does not charge for incoming SEP IRA transfers

✅ A direct transfer helps you avoid taxes and penalties

Next Steps:

✅ Gather your account documents

✅ Log in to Fidelity and initiate the transfer

✅ Track your transfer progress to ensure accuracy and completeness

✅ Reconfirm your financial goals post-transfer

Remember that while the transfer process is straightforward, each individual’s financial situation is unique. Take time to review your investment goals and ensure this transfer aligns with your long-term retirement strategy.

📌 If you need any additional guidance, be sure to check out these related articles:

Will I be able to transfer my Traditional, Roth, or SEP IRA account?

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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/).