Retirement accounts aren’t set in stone, and sometimes switching platforms makes perfect sense. Maybe you’re looking for lower fees, automated investing, or strategies that better match your long-term goals. Whatever the reason, moving your IRA to a new provider can be part of refining your overall plan.
Transferring your traditional IRA is a straightforward process, and when done as a direct transfer, it helps you preserve your tax-deferred savings while avoiding early withdrawal penalties or tax complications. 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 for a smooth, direct transfer from Fidelity to Wealthfront, preserving your retirement savings and avoiding unnecessary tax complications.
Step 1: Understand Your IRA Transfer Basics
A traditional IRA transfer requires careful planning and precise execution. When moving your retirement funds from Fidelity to Wealthfront, you’ll want to ensure a smooth, penalty-free process that preserves your hard-earned savings.
✅ Know your current Fidelity account details
✅ Make sure the account types match
✅ Have your ID and basic documents ready
✅ Review your current investments to see what can transfer
📝 Note: A direct transfer (where the funds move directly between providers) is typically the simplest and most tax-friendly option.
Step 2: Prepare Your Wealthfront Account
Before anything moves, you’ll need to open your new traditional IRA with Wealthfront. You can do this online in just a few minutes. You’ll need to provide:
✅ Social Security Number
✅ Employment information
✅ Bank account details for funding
✅ Beneficiary designations
✏️ Hypothetical Example: Sarah, a 35-year-old marketing professional, sets up her new Wealthfront IRA in about 15 minutes using the mobile app.
📝 Note: Make sure the account is the same type (Traditional IRA) to avoid delays or tax issues.
Step 3: Initiate the Transfer from Fidelity
Once your Wealthfront IRA is ready, log into your Fidelity account or call their customer service team to get things moving.
You’ll need to:
✅Request an outgoing transfer of your traditional IRA
✅Provide Wealthfront’s transfer details
✅Confirm that the transfer will be direct (custodian to custodian)
✏️ Real Example: Many customers complete this step in under 30 minutes online by navigating to Fidelity’s transfer-out section.
📝 Tip: Always double-check account numbers—a simple typo can delay the transfer.
Step 4: Complete Transfer Documentation
Fidelity may require you to complete and submit a few forms. These might include:
✅ Transfer initiation form
✅ Identification verification
✅ Account authorization documents
📝 Note: Processing these documents usually takes 3–5 business days, so keep an eye on email or account messages.
Step 5: Understand Potential Transfer Costs
Transferring a Traditional IRA from Fidelity to Wealthfront typically does not incur transfer-in fees at Wealthfront. Fidelity does not charge a fee to transfer assets out of your account, but a $50 fee may apply if you fully close your IRA.
It’s advisable to consult with both institutions to understand any potential fees that may apply to your specific situation.
✏️ Hypothetical Example: John had to sell a few proprietary mutual funds before the transfer, which triggered a small transaction fee.
Step 6: Monitor Transfer Timeline
Most transfers take about 5 to 10 business days, though it could take longer if your account includes multiple types of investments.
During this period:
✅Track the status from both Fidelity and Wealthfront accounts
✅Avoid making trades or contributions in the middle of the transfer
✅Verify final account balances once transfer completes
📝 Note: In some cases, transfers can take up to two weeks, depending on how quickly both institutions process the request.
Step 7: Tax Considerations
As long as the transfer is done directly, you won’t owe taxes or face penalties. But it’s still smart to understand the basics:
✅ Stick with the same account type (traditional to traditional)
✅ Avoid withdrawing the funds yourself
✅ Complete the transfer within the 60-day window to avoid potential tax penalties.
✅ Keep records for tax season, even if the move wasn’t taxable
✏️ Real Example: Maria made sure her transfer went directly from Fidelity to Wealthfront so it wouldn’t be reported as a distribution on her taxes.
Step 8: Final Verification
Once your funds have arrived at Wealthfront, do a quick check to make sure everything looks good:
✅ Confirm that the full balance transferred
✅ Review how your investments were reallocated or held
✅ Look for any unexpected fees or adjustments
📝 Reminder: Save copies of all transfer forms, emails, or confirmations. It’s always good to have documentation just in case.
Final Thoughts on Your Traditional IRA Transfer
Transferring a Traditional IRA from Fidelity to Wealthfront is a strategic process that requires careful attention to detail. The key things to remember? Stick with a direct transfer to keep your account tax-deferred, make sure your documents and account types match, avoid handling the money yourself to steer clear of tax issues, and complete the transfer within the 60-day window to avoid potential tax penalties.
Here’s what to do next:
✅ Confirming your Wealthfront account is set up correctly
✅ Initiating the transfer through Fidelity’s platform
✅ Monitoring the transfer process closely
📌 Want to dive deeper? Here are some other helpful resources:
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/).