How to Transfer a Roth IRA from Fidelity to Charles Schwab

Retirement accounts aren’t static investments. As your financial goals shift and investment platforms evolve,  it’s natural to revisit where and how your retirement savings are managed. Moving your Roth IRA between providers can help you access better tools, potentially lower fees, or align with a more comprehensive investment strategy.

A direct transfer between Fidelity and Charles Schwab allows you to move your Roth IRA securely—without triggering taxes or early withdrawal penalties. This guide will walk you through each step to help ensure your transfer is smooth, efficient, and keeps your savings working toward your future.

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. 

Step 1: Prepare Your Accounts for Transfer

Before transferring your Roth IRA from Fidelity to Charles Schwab, take a few steps to ensure both accounts are ready. Proper preparation helps avoid unnecessary delays during the transfer process.

✅ Confirm your Fidelity Roth IRA is active and free of pending transactions
✅ Review your current balance and holdings
✅ Gather important documentation

✅ Meet Charles Schwab’s account opening requirements

What you’ll need:

✅ Current Fidelity Roth IRA account number

✅ Personal identification documents

✅ Social Security Number

✅ Most recent IRA statement from Fidelity

✅ Online access to both Fidelity and Charles Schwab accounts

📝 Tip: Ensure your name and personal details match exactly across both accounts to prevent transfer issues.

Step 2: Open Your Charles Schwab Roth IRA

Opening a new Roth IRA with Schwab is typically straightforward and can be completed online in about 10–15 minutes. Here’s what you need to do:

✅ Provide personal and financial information
✅ Review and select preferred investment options
✅ Set up online access and communication preferences
✅ Verify your contact information is up to date

📝 Note: Charles Schwab offers multiple investment options, so take a moment to review your investment strategy before finalizing the account.

Step 3: Initiate the Direct Transfer

A direct trustee-to-trustee transfer is the safest and most efficient method for moving your Roth IRA. This process ensures you avoid any potential tax consequences or early withdrawal penalties. To initiate:

✅ Contact Schwab’s transfer department

✅ Request a direct transfer from Fidelity

✅ Provide your Fidelity and Schwab account numbers

✅ Authorize the transfer by completing the required forms

Step 4: Have Your Documents Ready

Having the following ready can help avoid delays:

✅ Government-issued photo ID

✅ Most recent Fidelity Roth IRA statement

✅ Charles Schwab Roth IRA account information

✅ Proof of Social Security Number

✅ Current contact information

Step 5: Understand the Transfer Timeline

Transfers between Fidelity and Charles Schwab typically complete within 5–7 business days, but timelines can vary based on:

✅ Complexity of the assets being transferred
✅ Processing times at both institutions
✅ Completeness and accuracy of your submitted documents

✅ Any additional verification requirements

📝 Note: Electronic transfers are generally faster than transfers involving mailed paperwork.

Step 6: Know the Potential Fees

Charles Schwab does not charge a fee for receiving incoming IRA transfers, including Roth IRAs. Fidelity charges a $50 account closeout fee when you fully close your Roth IRA account.

It’s always wise to confirm current fee structures directly with both providers.

Potential costs to consider:

Step 7: Tax Considerations

Direct transfers between Roth IRAs are not taxable events. The funds move without triggering any tax implications, preserving your account’s tax-advantaged status. Ensure you’re completing a direct transfer to maintain this tax-free transition.

Key tax points:

Step 8: Final Verification and Confirmation

After your transfer request is processed:

✅ Monitor your Fidelity account for outgoing activity
✅ Track incoming funds into your Charles Schwab Roth IRA
✅ Confirm that the total balance matches your original amount
✅ Review your new Charles  Schwab holdings to ensure proper asset allocation

📝 Tip: Keep all transfer confirmation documents for your records.

Wrapping Up Your Roth IRA Transfer Journey

Transferring your Roth IRA from Fidelity to Charles Schwab doesn’t have to be complicated. The key takeaways are straightforward: complete a direct transfer to avoid any potential tax consequences, ensure your account information is accurate, and be prepared with necessary documentation. Most transfers typically take 5-7 business days and involve no additional fees from either institution.

Your next step is to initiate the transfer through Charles Schwab’s transfer department, providing your existing account details and completing the required authorization forms. Remember to verify your account balance and investment positions after the transfer to ensure everything moves correctly.

📌 Want to dive deeper? Here are some other helpful 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.

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