If you’re a small business owner or self-employed professional, moving your SEP IRA to a new provider like Betterment might offer more flexible investment tools, lower fees, or a better user experience. The good news? Transferring your SEP IRA from Fidelity to Betterment is fairly straightforward when done properly.
At Carry, we want to make financial decisions feel more manageable — even if you’re handling them outside our platform. This step-by-step guide will walk you through the process, documents needed, and potential pitfalls, helping you avoid unnecessary delays or tax complications.
Quick Transfer Checklist
Before getting started, make sure you have everything on hand:
✅ Your Fidelity SEP IRA account number
✅ Government-issued photo ID
✅ Most recent SEP IRA account statement
✅ Completed Betterment transfer request form
✅ Social Security Number
✅ Contact info for both Fidelity and Betterment
Step 1: Get Ready to Transfer
Before initiating the move, take time to review your current investments and confirm whether Betterment’s offerings align with your financial goals. SEP IRA transfers require a few strategic steps to ensure that your retirement assets move smoothly between providers without tax consequences.
✅ Review your current SEP IRA portfolio at Fidelity
✅ Evaluate Betterment’s platform and investment approach
✅ Make sure both accounts are active and under your name
Step 2: Start a Direct Transfer
A direct transfer (e.g., trustee-to-trustee) is the safest way to move retirement funds between custodians. This method prevents the funds from ever touching your personal bank account, which helps you avoid taxes and penalties.
To begin:
✅ Log into your Betterment account and head to the account transfer section.
✅ Choose “direct transfer” as the method
✅ Complete Betterment’s transfer form
✅ Send the form to Fidelity for processing
Step 3: Gather Required Documents
Missing paperwork is a common cause of transfer delays. Having everything ready in advance ensures a smoother experience. You’ll need:
✅ Your Fidelity SEP IRA account number
✅ A valid government-issued ID
✅ Most recent Fidelity account statement
✅ Betterment’s completed transfer form
✅ Your SSN and updated contact details
Step 4: Review Investment Compatibility
Not all assets transfer easily between custodians. Some may need to be sold, which could temporarily affect your portfolio’s composition or exposure to the market.
Take time to assess how each asset in your SEP IRA will be handled during the transfer process.
✅ Check if any investments must be liquidated
✅ Understand which funds will transfer “in-kind”
✅ Be aware of short-term exposure changes during transfer
Step 5: Consider Tax Implications
While direct SEP IRA transfers are typically tax-free, any missteps — like receiving a check made out to you — could turn the transfer into a taxable event. It’s critical that the funds move directly between institutions.
📝 Important: Never take possession of the funds yourself. If a check is issued, it must be made out to the new custodian, not to you personally.
✅ Ensure the transfer is labeled as “trustee-to-trustee”
✅ Do not accept checks made out to you
✅ Avoid any indirect rollover or personal handling of funds
✅ Consult with a tax advisor if you’re unsure about any step.
Step 6: Understand the Timeline
On average, SEP IRA transfers take about three to four weeks. This includes time for processing paperwork, verifying investment assets, and completing the new account setup at Betterment.
✏️ Hypothetical Example: If you initiate the transfer on March 1, it might be processed by Fidelity around March 15 and finalized by Betterment around March 25.
✅ Plan for 3–4 weeks from start to completion
✅ Don’t initiate trades or contributions during the transfer window
✅ Track the status with both Fidelity and Betterment
Step 7: Confirm Fees and Costs
Most SEP IRA transfers are free, but it’s still wise to double-check with both providers. Fidelity typically does not charge fees and Betterment also does not charge a fee for incoming transfers; however, standard account management fees (either $4 per month or 0.25% annually) may apply after the transfer is complete.
Some underlying investment assets may also involve small transaction fees if they must be sold.
✅ Confirm there are no transfer-out fees with Fidelity
✅ Ask Betterment if any new account fees apply
✅ Review your investment expense ratios post-transfer
Step 8: Verify and Wrap It Up
Once the transfer is complete, review your new Betterment SEP IRA to confirm everything transferred correctly. Check that the full balance has transferred, your investments are accounted for, and the SEP IRA is properly labeled.
✅ Verify that the full balance was received
✅ Confirm your account type and personal info
✅ Save all transfer confirmations and final account statements for your records
Final Thoughts on Your SEP IRA Transfer
Transferring a SEP IRA from Fidelity to Betterment is a strategic process that requires careful attention to detail. The key takeaways include understanding the importance of a direct transfer to avoid potential tax consequences and ensuring all necessary documentation is prepared accurately.
Your next steps:
✅ Gather the required account documents
✅ Initiate the transfer using Betterment’s platform
✅ Double-check every detail during the transfer process
✅ Stay in contact with both providers throughout
Remember that while the transfer process is typically straightforward, each individual’s financial situation is unique. The entire transfer typically takes 3-4 weeks, so patience and thorough documentation are crucial to a successful transition of your retirement assets.
📌 If you need any additional guidance, be sure to check out these related articles:
Understanding SEP IRA Investment Strategies
IRA | Rollovers of retirement plan and IRA distributions
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/).