How to Transfer a Roth IRA from Fidelity to Betterment

Transferring a Roth IRA might feel a bit daunting at first, but moving your account from Fidelity to Betterment can be a pretty straightforward process. If you’re considering a switch—whether for different investment options, platform experience, or fee structure—this guide will walk you through what to expect, step by step.

At Carry, we want to make financial decisions feel more manageable — even if you’re handling them outside our platform. Follow along to ensure your Roth IRA transfer is smooth, secure, and tax-free.

Quick Transfer Checklist

Before you begin, have the following items ready:

✅ Fidelity Roth IRA account number
✅ Government-issued photo ID
✅ Most recent account statement
✅ Social Security Number
✅ Contact details for both Fidelity and Betterment

Step 1: Plan the Transfer

Start by confirming that transferring your Roth IRA supports your long-term financial goals. A well-executed transfer preserves your account’s tax-advantaged status and avoids any costly missteps.

✅ Review your current Roth IRA holdings
✅ Evaluate whether Betterment suits your investment goals
✅ Confirm both accounts are active and under your name

Step 2: Use a Direct Transfer

A direct, trustee-to-trustee transfer is the safest and most tax-efficient way to move a Roth IRA. This method ensures the funds are sent directly from Fidelity to Betterment, bypassing your personal account.

✅ Initiate the transfer through Betterment
✅ Confirm that Fidelity will send the funds directly
✅ Avoid taking personal possession of the funds

Step 3: Gather Your Documents

Preparing the correct documents in advance helps prevent delays and simplifies the transfer process. Betterment may ask for verification documents as part of the transfer request.

✅ Fidelity Roth IRA account number
✅ Valid government-issued ID
✅ Most recent IRA statement
✅ Social Security Number
✅ Updated contact information for both providers

Step 4: Understand Asset Compatibility

Not all assets in your Fidelity account may transfer as-is. Some Fidelity-specific mutual funds may need to be liquidated before the transfer can be completed.

✏️ Hypothetical Example: If your Roth IRA includes proprietary mutual funds, these may need to be sold at Fidelity before the proceeds can be reinvested at Betterment.

✅ Identify which assets can be transferred

✅ Confirm with both Fidelity and Betterment how specific assets will be handled in the transfer.

✅ Prepare for a short investment gap, if necessary

Step 5: Know the Timeline

Most Roth IRA transfers are typically completed within 3–5 business days, but timing can vary based on account complexity or missing paperwork. The ACATS system handles most transfers electronically.

✅ Expect a short holding period while funds move
❌ Don’t schedule trades or contributions during the transfer
📝 Monitor both accounts to track progress

Step 6: Confirm the Fee Structure

Both Fidelity and Betterment generally do not charge for Roth IRA transfers, but policies can vary. Betterment has standard account management fees (either $4 per month or 0.25% annually) that may apply after the transfer is complete.

Review current terms before initiating the transfer to avoid any surprises.

✅ Ask Fidelity if any transfer-out fees apply
✅ Confirm that Betterment does not charge incoming transfer fees
✅ Review Betterment’s ongoing management or advisory fees

Step 7: Review the Tax Impact

Good news: Direct transfers between Roth IRAs are not taxable events, as long as the funds remain in an account with the same tax classification and the transfer is handled properly.

✅ Ensure the transfer is marked as direct
✅ Avoid receiving a check made out to you
✅ Keep records for tax reporting if needed

Step 8: Final Confirmation and Account Review

Once the transfer is complete, confirm that the full balance has arrived in your Betterment account. Make sure no partial amounts remain behind and that everything has been invested as expected.

✅ Log into both accounts and verify the full transfer
✅ Check your updated investment allocation at Betterment
✅ Save all transfer documentation

Final Thoughts: Your Roth IRA Transfer Roadmap

Transferring your Roth IRA from Fidelity to Betterment can be a straightforward process when you understand the key steps. Direct transfers remain the most tax-efficient method, ensuring your retirement funds move seamlessly without triggering unexpected penalties.

Key takeaways:

✅ Initiate the transfer through Betterment
✅ Prepare all necessary documentation in advance
✅ Expect the process to take 3–5 business days
✅ Monitor both accounts to confirm success

Taking the time to follow the process step-by-step helps ensure your retirement savings stay protected and on track.

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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/).