Retirement accounts often evolve with your financial goals. If you’re considering transferring your 401k from Fidelity to M1 Finance, it’s important to understand the steps involved. Whether you’re exploring new investment strategies, seeking greater portfolio flexibility, or looking to consolidate your accounts, a well-executed rollover can help keep your retirement planning on track.
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 M1 Finance 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: Check Your Current 401k Status with Fidelity
Before initiating a transfer, review your current Fidelity 401k details. It’s important to understand your investment holdings and identify any restrictions that may impact the rollover process.
✅ Check your current 401k balance
✅ List the types of investments you currently hold
✅ Determine if any employer contributions are unvested
✅ Understand potential withdrawal penalties or limitations
Step 2: Open an IRA with M1 Finance
Create a new Individual Retirement Account (IRA) with M1 Finance. This is where your 401k funds will be transferred. The online setup requires standard personal and employment information.
✏️ Hypothetical Example: Most individuals choose a Traditional IRA or Roth IRA, depending on their tax situation and retirement timeline.
Step 3: Initiate the Rollover Process
Once your M1 Finance account is set up, contact Fidelity to begin a direct rollover, which allows your funds to move from your 401k to M1 Finance without passing through your hands.
Key steps include:
✅Request a direct rollover form from Fidelity.
✅Provide your new M1 Finance IRA account details.
✅Ensure any check is payable to “Apex Clearing” (M1 Finance’s clearing firm)
📝 Pro Tip: Always choose a direct rollover to avoid tax withholding or early distribution penalties.
Step 4: Gather Required Documents
Have the following documentation on hand to help avoid delays:
✅ Government-issued photo ID
✅ Most recent Fidelity 401k statement
✅ M1 Finance IRA account number
✅ Social Security Number
✅ Personal contact information
Step 5: Submit and Track the Transfer
Submit your completed rollover paperwork to Fidelity. They will process the transfer, typically sending funds electronically or via a physical check to M1 Finance. This process can take 3-5 business days.
✏️ Hypothetical Example: A $50,000 401k balance could be moved entirely into your M1 Finance IRA without triggering taxes if processed correctly.
Step 6: Review for Possible Fees
While Fidelity doesn’t generally charge for rollovers, it’s good practice to confirm all costs upfront.
✅ Check for wire transfer or account closure fees
✅ Ask about administrative charges from both Fidelity and M1 Finance
📝 Note: Always confirm exact fees with both Fidelity and M1 Finance before initiating the transfer.
Step 7: Understand the Tax Implications
A direct rollover is generally a non-taxable event. However, ensure the transfer occurs within 60 days to avoid potential tax implications. If funds are not deposited within this timeframe, the IRS may treat it as a taxable distribution.
Step 8: Verify the Completed Transfer
After the funds arrive at M1 Finance, double-check the following:
✅ The full balance was transferred
✅ There were no unexpected fees
✅ Your investment allocations are set up as intended
📌 If you’re looking for more guidance, these resources may help:
Wrapping Up Your 401k Transfer Journey
Transferring your 401k from Fidelity to M1 Finance requires careful planning and close attention to detail. The key takeaways include understanding the importance of a direct rollover to avoid tax penalties and ensuring you have all necessary account details before initiating the transfer. While the process may initially seem complex, approaching it step by step makes it much more manageable.
Next steps involve:
✅ Verifying that your M1 Finance IRA is set up and ready to receive funds
✅ Contacting Fidelity to request a direct rollover
✅ Following all transfer instructions carefully to avoid delays or tax issues
📌 Want to dive deeper? Here are some other helpful (and free) 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/).