How to Transfer a 401k from Fidelity to Wealthfront

Transferring your 401k from one provider to another can be a smart step when you’re looking for a platform that better fits your investment style or long-term goals. Understanding the 401k rollover process is essential to avoid unnecessary taxes and ensure a smooth transition.

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 Wealthfront 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: Confirm Your Eligibility for a 401k Transfer

Transferring a 401k from Fidelity to Wealthfront requires meeting certain eligibility conditions. Most 401k plans can be rolled over only if you’ve separated from your employer or are age 59½ or older. These requirements help ensure that your retirement plan qualifies for a rollover without tax consequences.

✅ Valid 401k plan from a previous employer

✅ You are no longer employed by the plan sponsor

✅ The account is not receiving ongoing contributions

✅ You are at least age 59½ or have separated from service

📝 Note: Always confirm your eligibility and specific account status with Fidelity before initiating a rollover to avoid potential delays or tax issues.

Step 2: Prepare Your Wealthfront Account

Before the transfer can begin, you’ll need an active Wealthfront Individual Retirement Account (IRA) to receive the funds. The account setup process is done online and generally takes about 15–20 minutes.

Information you’ll need includes:

✅ Social Security Number

✅ Employment and contact details

✅ Bank account information for funding

✅ Beneficiary designations

Step 3: Choose Your Transfer Method

You can transfer your 401k using one of two methods: a direct rollover or an indirect rollover. A direct rollover is generally the preferred method because it avoids tax withholding and reduces the risk of penalties.

Direct Rollover (Recommended):

Indirect Rollover:

Step 4: Gather Required Documentation

To avoid delays, prepare these documents in advance:

✅ Most recent 401k statement from Fidelity

✅ Government-issued photo identification

✅ Wealthfront IRA account number

✅ Personal contact information

✅ Employment verification documents

Step 5: Initiate the Transfer Process

Once your Wealthfront IRA is established, contact Fidelity to request a direct rollover of your 401(k) funds into your new Wealthfront IRA. You can do this online through your account or by speaking with a representative. Provide them with your Wealthfront IRA account details for a direct transfer.

📝 Note: Always request a direct rollover to avoid potential tax withholding complications.

Step 6: Understand Potential Transfer Fees

While Wealthfront doesn’t charge transfer fees, be aware of potential costs:

✅ Fidelity may charge an outgoing transfer fee or closure fees

✅ Your new Wealthfront account might have management fees

✏️ Hypothetical Example: Some users report paying up to $75 in total transfer-related fees, depending on their plan’s structure.

Step 7: Consider the Tax Implications

As long as the rollover is completed correctly as a direct transfer, no immediate taxes should be due. However, certain actions—such as receiving the funds personally or missing the 60-day deadline—can lead to taxable events.

📝 Reminder: Consult a tax professional if you have complex financial circumstances or unique retirement scenarios.

Step 8: Verify Transfer Completion

Once the transfer has been initiated, monitor the process through both Fidelity and Wealthfront. Most transfers finalize in 3–5 business days, but check your account balance to ensure the full amount arrives.

✏️ Hypothetical Example: Most users see funds fully transferred within one week of initiating the rollover.

✅ Match the transferred amount to your last Fidelity statement

✅ Confirm receipt in the correct account type (e.g., Traditional IRA vs. Roth IRA)

✅ Retain all documentation for your records

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

Final Thoughts on Transferring Your 401k

Transferring a 401k from Fidelity to Wealthfront involves several important steps that require attention to detail. Key takeaways include opting for a direct rollover to help avoid potential tax penalties, gathering accurate documentation, and confirming account compatibility.

The most critical actions involve confirming that your new Wealthfront account is ready to receive funds, verifying all account and identity information, and following IRS guidelines to ensure the transfer maintains its tax-advantaged status.

Next steps include:

✅ Confirming that your Wealthfront IRA has been opened and verified
✅ Collecting all necessary personal and account documents, including your most recent 401k statement
✅ Contacting Fidelity and Wealthfront to initiate a direct rollover and monitor the process until completion

📝 Note: While many rollovers complete within a week, it’s always a good idea to keep copies of all transfer confirmations and consult a tax advisor for personalized guidance.

📌 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/).