How to Transfer a Traditional IRA from Fidelity to Ally Invest

At some point, you might realize your retirement account could be a better fit elsewhere. Maybe you’re exploring new platforms, comparing fees, or just looking for investment options that better match your current goals. A direct transfer from Fidelity to Ally Invest can help you reposition your retirement savings without tax consequences or early withdrawal penalties. 

This guide walks you through each step to make the move as smooth as possible. At Carry, we want to make financial decisions feel more manageable, even if you’re handling them outside our platform. 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. 

Step 1: Understanding Your Transfer Landscape

Moving your Traditional IRA from Fidelity to Ally Invest requires careful planning and precise execution. The goal is to move your retirement savings without triggering taxes or early withdrawal penalties, while keeping everything aligned with your long-term strategy.

What You Might Need

✅ Fidelity Traditional IRA account number

✅ Social Security Number

✅ Government-issued photo ID

✅ Most recent IRA statement

✅ Login access for both Fidelity and Ally Invest

✅ Contact information for each provider, just in case you need support

Step 2: Prepare Your Ally Invest Account

Open a Traditional IRA with Ally Invest before starting the transfer.This account will be the destination for your transferred funds.

During account creation, have your personal and financial information readily available.

✏️ Real Example: John set up his Ally Invest Traditional IRA in about 15 minutes, entering basic info like his employment, financial background, and Social Security Number.

Step 3: Initiate the Transfer Request

Once your Ally Invest account is ready, contact their support team or use the dashboard to begin your transfer. You’ll be walked through an ACATS form (Automated Customer Account Transfer System), which is used to move your IRA.

Key transfer details to prepare:

Step 4: Complete Transfer Documentation

Ally Invest will provide a transfer form requiring specific information. Carefully review all details to prevent potential processing delays. Double-check account numbers, personal information, and transfer instructions.

📝 Tip: Save a digital and printed copy of the form and any emails related to the transfer.

Step 5: Understand Potential Transfer Fees

Ally Invest charges a $50 fee for full or partial transfers between institutions. Fidelity typically does not charge outgoing transfer fees, but a $50 account closure fee may apply if you fully close your IRA.

It’s always advisable to consult with both institutions to understand any potential fees that may apply to your specific situation.

✏️ Hypothetical Example: Sarah’s $25,000 Traditional IRA transfer incurred a $50 fee from Ally Invest, which she considered reasonable given her long-term investment strategy.

Step 6: Anticipate Transfer Timeline

Most Traditional IRA transfers between Fidelity and Ally Invest take 5-10 business days. During that time:

✅ Avoid making new trades or deposits in your Fidelity account
✅ Use your Ally dashboard to track the transfer status
✅ Reach out to support if there’s no update after two weeks

Step 7: Tax Considerations

Since you’re transferring between two Traditional IRA accounts, this is considered a direct rollover. This means no tax implications or early withdrawal penalties will apply if executed correctly.

📝 Important: Ensure the transfer occurs directly between institutions to maintain tax-advantaged status. Don’t accept the funds yourself—let the institutions handle it directly.

Step 8: Final Verification

After the transfer is complete, confirm:

Final Thoughts on Your IRA Transfer Journey

Transferring a Traditional IRA from Fidelity to Ally Invest involves careful planning and attention to detail. The process requires gathering specific documentation, understanding transfer fees, and ensuring a direct rollover to maintain your account’s tax-advantaged status. As long as you keep things organized, it’s usually a smooth experience.

Here’s what to keep in mind:

✅ Verify all account information before initiating the transfer

✅ Expect a timeline of about 5-10 business days

✅ Be prepared to pay potential transfer fees

✅ Confirm all assets have correctly transferred after completion

Next steps involve double-checking your new Ally Invest account to ensure all expected investments have arrived and maintaining accurate records of the transfer process.

📌 Want to dive deeper? Here are some other helpful resources:

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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/).