How to Transfer a Traditional IRA from Betterment to Fidelity

Many retirement investors occasionally reassess where they manage their accounts to ensure alignment with evolving financial goals. If you’re looking to move your traditional IRA from Betterment to Fidelity, understanding the transfer process can help you make a smooth transition without triggering unexpected tax consequences. 

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 traditional IRA from Betterment to Fidelity 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. 

Quick Transfer Checklist

Here’s what to have on your radar before starting the transfer:

✅ Confirm your Betterment traditional IRA account details
✅ Make sure your Fidelity IRA is already open
✅ Gather your photo ID, SSN, and recent IRA statement
✅ Start the transfer process through Fidelity’s online portal
✅ Choose a direct transfer, not a rollover
✅ Expect a $75 transfer-out fee from Betterment
✅ Monitor the process — it usually takes 5–10 business days
✅ Confirm all funds have been moved successfully
✅ Keep copies of all documentation for tax records

Step 1: Get Ready for the Transfer

Before initiating the transfer, gather the following documents:

✅ Your Betterment traditional IRA account number
✅ Government-issued photo ID
✅ Most recent IRA statement
✅ Social Security Number
✅ Fidelity IRA account number (if open)
✅ Contact information for both providers

A Traditional IRA transfer preserves the tax-deferred status of your account while allowing you to pursue potentially better tools, services, or strategies at a new provider.

Step 2: Use a Direct Transfer

The simplest and safest method is a direct transfer. In this process, your funds move directly from Betterment to Fidelity without passing through your personal account, which avoids tax complications.

Benefits of a direct transfer:

✅ No tax consequences
✅ No early withdrawal penalties
✅ Fidelity handles most of the coordination with Betterment

Just make sure all account information is accurate and follow each platform’s transfer steps carefully.

Step 3: Know What to Watch Out For

Not every transfer goes the same way — here’s what to consider:

✅ Some investments may need special handling
✅ Not all assets transfer in-kind
✅ Timing your transfer during a stable market may help

❌ If your portfolio must be liquidated before transfer, you could experience a temporary gap in market exposure. Plan accordingly.

Step 4: Understand the Timeline and Fees

⏱️ Most transfers are completed within 5–10 business days, depending on your investment complexity and how quickly both institutions respond.

✏️ Real Example: Simple accounts may transfer in as little as 3–5 business days, while more complex portfolios may take up to two weeks.

Fees: 

✅ Fidelity typically does not charge fees to receive incoming IRA transfers
❌ Betterment charges a $75 flat fee per investing account transferred out

📝 Reminder: Check current fee policies directly with each provider, as they may change.

Step 5: Avoid Tax Mistakes

✅ Direct traditional IRA transfers are not taxable events when done correctly
✅ No penalties or income tax
✅ Your account remains tax-deferred

📝 Note: Make sure the transfer is completed within 60 days to maintain your IRA’s tax-advantaged status.

Step 6: Confirm the Transfer is Complete

Once the transfer is finalized:

✅ Double-check that the full balance has transferred
✅ Confirm with both Betterment and Fidelity
✅ Keep copies of all transfer confirmations
✅ Revisit your investments and rebalance if needed

Wrapping Up Your Traditional IRA Transfer

Transferring a traditional IRA from Betterment to Fidelity doesn’t have to be complicated. The key takeaways are straightforward: complete a direct transfer to avoid tax consequences, ensure you have all necessary documentation ready, and follow each institution’s specific transfer instructions carefully.

Your next steps involve:

✅ Gathering required account information

✅ Initiating the transfer through Fidelity

✅ Verifying the transfer is completed within the expected 5-10 business day timeline

Remember that this process is designed to be tax-neutral, meaning you won’t trigger any immediate tax events when executed correctly. Always double-check your documentation and maintain clear communication with both financial institutions to ensure a smooth transition.

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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/).