Your traditional IRA has been growing steadily, but maybe you’re exploring new platforms that better fit your evolving investment style. Whether it’s the appeal of lower trading fees, broader investment access, or more advanced tools, it’s natural to want a platform that keeps up with your goals.
Transferring your IRA doesn’t have to be complicated. 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.
This guide walks you through the steps to move your retirement funds from Fidelity to Interactive Brokers, keeping your account’s tax-deferred status intact while opening the door to a new investing experience.
Step 1: Understand Your Transfer Landscape
Transferring a traditional IRA from Fidelity to Interactive Brokers is a straightforward process but it’s important to get the details right. Your goal is to move your retirement savings without creating a tax event or facing penalties.
The safest approach is a direct custodian-to-custodian transfer. This means the funds go directly between institutions, with no pit stop in your personal bank account.
Key things to keep in mind:
✅ Your funds remain tax-deferred throughout the transfer
✅ The transfer should be between the same account types (Traditional IRA to Traditional IRA)
✅ No personal handling of funds to avoid potential tax implications
Step 2: Set Up Your Interactive Brokers Account
Before you begin the transfer, you’ll need to open a Traditional IRA at Interactive Brokers. This will be the destination for your Fidelity funds.
Steps to set up your new account:
✅ Complete the online application
✅ Provide personal details and identification
✅ Verify your identity with standard documents
✅ Link a bank account for future contributions
✏️ Hypothetical Example: John, a 35-year-old investor, spent around 20 minutes setting up his IRA on the Interactive Brokers platform.
Step 3: Gather What You Might Need
Having your paperwork ready helps the transfer go smoothly. You’ll need:
✅ Fidelity Traditional IRA account number
✅ Social Security Number/Tax ID
✅ Interactive Brokers account number
✅ Most recent IRA statement from Fidelity
✅ A valid government-issued photo ID
✅ Completed transfer authorization form from Interactive Brokers
📝 Tip: Double-check that your info matches across both accounts. Even a small mismatch can cause delays.
Step 4: Initiate the Transfer Request
Once your new account is ready, reach out to Interactive Brokers to start the transfer. They’ll typically coordinate with Fidelity on your behalf.
You can initiate the transfer in a few ways:
✅ Submit the request through Interactive Brokers’ online portal
✅ Call their customer service team
✅ Fill out a paper transfer form, if preferred
✏️ Real Example: Most IRA transfers are completed in about 5–7 business days after all forms are submitted.
Step 5: Understanding Transfer Mechanics
This transfer will likely use the Automated Customer Account Transfer Service (ACATS). It’s a standardized system that helps move investments securely and efficiently.
Here’s what usually happens:
✅ Most stocks and ETFs will transfer “in-kind” (meaning they stay intact)
✅ Some mutual funds may need to be sold and transferred as cash
✅ Stocks priced over $1.00 usually transfer without issue
📝 Tip: Check with both Fidelity and Interactive Brokers to see if any of your holdings require special handling.
Step 6: Potential Transfer Fees
It’s always wise to check with both providers, as fees may vary depending on your account type or the specific investments involved.
Fidelity: Fidelity does not charge a fee to transfer assets out of your account. However, a $50 account close-out fee may apply if you close your IRA entirely.
Interactive Brokers: Interactive Brokers typically does not charge a fee to receive incoming IRA transfers.
✏️ Hypothetical Example: Sarah transferred her $50,000 Traditional IRA and paid no fees for the direct move between platforms.
Step 7: Tax Considerations
As long as you use the custodian-to-custodian method, your transfer should remain completely tax-deferred. You won’t incur taxes or early withdrawal penalties if executed correctly.
Key points to stay compliant:
✅Always use direct transfer method
✅Never personally receive transfer funds
✅Keep all transfer records
📝 Tip: Consult a tax professional for personalized guidance.
Step 8: Final Verification & Confirmation
Once the transfer is done, don’t forget to review both Fidelity and Interactive Brokers accounts to confirm:
✅ All assets were received by Interactive Brokers
✅ Account balances match your last Fidelity statement
✅ There are no missing or unaccounted-for transactions
Wrapping Up Your IRA Transfer Journey
Transferring a traditional IRA from Fidelity to Interactive Brokers is a strategic move but it doesn’t have to be stressful. The most important thing is making sure the transfer is done as a direct custodian-to-custodian transfer so your retirement savings stay tax-deferred and penalty-free.
Before you move on, take a few simple steps to close things out:
✅ Verify that all funds were transferred accurately
✅ Check that your account balances match
✅ Confirm all your investments arrived or were properly reallocated
Don’t forget:
📝 Hold on to all your transfer documents. They may come in handy at tax time or if there’s ever a question about the move.
If you’re unsure about anything, it’s always a good idea to talk to a tax advisor to make sure everything lines up with your specific financial situation.
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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/).