How to Transfer a 401k from Fidelity to Acorns

Retirement accounts are meant to support your evolving financial needs. You may have opened a 401k with Fidelity at an earlier stage in your career, but now you’re considering another provider—such as Acorns—based on features or services that may better suit your current goals. Transferring your 401k between providers can be a strategic step to better align your retirement investments with your overall financial plan.

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 401k from Fidelity to Acorns 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.

Step 1: Understand Your 401k Transfer Basics

Transferring a 401k from Fidelity to another provider such as Acorns requires careful planning and attention to detail. The process involves moving your retirement funds between two different financial platforms while maintaining the tax-advantaged status of your investment.

Before you begin, note that this transfer will typically involve rolling your Fidelity 401k into an Individual Retirement Account (IRA) with Acorns. This approach helps you avoid potential tax penalties and ensures a smooth transition of your retirement savings.

Step 2: Prepare Your Financial Documentation

Gathering the right documents is crucial for a successful transfer. You’ll need to have several key pieces of information ready to streamline the process.

✅ Government-issued photo ID

✅ Social Security number

✅ Most recent Fidelity 401k statement

✅ Current contact information

✅ Acorns account information

📝 Pro tip: Ensure that your personal information is consistent across both financial institutions to help prevent processing delays.

Step 3: Choose Your Transfer Method

You typically have two options when transferring your 401k:

✏️ Hypothetical Example: John chose a direct rollover, ensuring that Fidelity transferred his 401k funds directly into his Acorns IRA, thereby avoiding potential tax issues.

Step 4: Initiate the Transfer Process

Contact Acorns to start the transfer. Their customer support team will guide you through the specific steps and help you complete the necessary paperwork. You’ll need to:

✅Authorize the transfer of funds.

✅Provide verification of your current Fidelity 401k account.

✅Complete Acorns’ rollover request forms.

📝 Important reminder: Always confirm the transfer method with both Fidelity and Acorns to ensure a smooth transition.

Step 5: Understand Potential Transfer Fees

While most rollovers are free, there are potential fees for IRA account closure and outgoing account transfers. It’s advisable to review all associated fees and consult with both Fidelity and Acorns to ensure a smooth rollover process.

✏️ Hypothetical Example: Sarah learned her former employer’s 401k included a $50 account termination fee.

Step 6: Navigate Tax Considerations

A direct rollover typically avoids tax consequences. Still, you should be aware of these key points:

✅ Complete the rollover within 60 days to avoid potential tax penalties

✅ A direct transfer helps preserve your account’s tax-advantaged status

✅ Consult with a tax advisor for advice based on your individual situation

Step 7: Verify Your Transfer

Once the transfer is initiated, follow up by:

✅ Confirming receipt of funds
✅ Verifying the amount transferred matches your prior account
✅ Reviewing the setup and allocation of your new IRA

📝 Tip: Keep all transfer documentation for your tax records for at least three years.

Step 8: Set Up Your New Investment Strategy

After the transfer, log into your new Acorns account to:

✅ Review investment preferences
✅ Adjust your asset allocation if needed
✅ Enable automatic investment features based on your goals

📌 If you’re looking for more guidance, these resources may help:

Final Thoughts on Your 401k Transfer Journey

Transferring your 401k from Fidelity to Acorns requires careful planning and attention to detail. Key considerations include understanding the direct rollover process, preparing the necessary documentation, and checking for any applicable fees. 

While many rollovers are routine, the specifics may vary depending on individual circumstances and the institutions involved.

Next steps involve:

✅ Confirming your identity with both Fidelity and Acorns

✅ Gathering required documentation ahead of the transfer

✅ Verifying transfer methods and potential fees

✅ Ensuring the transfer is completed within 60 days to maintain tax-deferred status

📌 Want to dive deeper? Here are some other helpful (and free) 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/).