Retirement accounts can be adjusted as your financial needs and preferences evolve. You may have opened your Traditional IRA with Charles Schwab based on certain features, but now find that M1 Finance’s portfolio management tools better support your current strategy. Switching providers could help you align your retirement strategy with more advanced investment approaches that match your current financial goals.
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 Charles Schwab 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: Understand Your Transfer Requirements
Transferring a Traditional IRA from Charles Schwab to M1 Finance involves several key steps to help ensure a smooth and tax-efficient transition. Proper preparation can help prevent delays, minimize potential tax issues, and avoid unnecessary fees.
What You’ll Need:
✅ Your current Charles Schwab Traditional IRA account number
✅ Personal identification documents
✅ M1 Finance account information
✅ Recent Charles Schwab IRA statement
✅ Social Security Number
✅ Contact information for both financial institutions
📝 Pro Tip: Double-check that all your personal information matches exactly across both platforms to prevent transfer delays.
Step 2: Open Your M1 Finance Account
Before initiating the transfer, you’ll need to open a Traditional IRA account with M1 Finance. Visit M1’s website and complete the online registration, selecting “Traditional IRA” as the account type.
Most online applications take about 10-15 minutes. Have your personal and employment information ready to expedite the process.
Step 3: Choose Your Transfer Method
You can move your Traditional IRA using one of two common methods:
Direct Transfer (Recommended):
✅ Funds are sent directly between custodians
✅ Helps avoid tax withholding and penalties
✅ Typically faster and more straightforward
Indirect Rollover:
❌ Funds are sent to you first; you must redeposit them within 60 days
❌ May trigger 20% mandatory withholding
❌ Higher risk of tax consequences if not executed properly
📝 Important: A direct transfer is usually the preferred and safer method.
Step 4: Initiate the Transfer Process
Contact M1 Finance’s transfer department to start the process. They will provide a specific transfer form requiring details about your Charles Schwab account. You’ll need to specify:
✅ The amount you wish to transfer (partial or full)
✅ The account type (Traditional IRA)
✅ Your complete Charles Schwab account information
✏️ Hypothetical Example: If your Charles Schwab Traditional IRA holds $50,000, indicate this full amount when completing the form.
Step 5: Complete Transfer Documentation
To finalize the transfer, M1 Finance will typically request the following:
✅ Completed transfer request form
✅ Copy of a government-issued ID
✅ Recent IRA statement from Charles Schwab
✅ Signed authorization documents
📝 Pro Tip: Save digital copies of all documents for your records before submitting.
Step 6: Understand Potential Transfer Fees
Transfer Fees from Charles Schwab:
✅ $50 fee for full account closure
✅ No fees for partial transfers
✅ No general outbound IRA transfer fee
M1 Finance Fees:
✅ No fee for incoming IRA transfers
✅ $3 monthly platform fee for IRA accounts (may be waived based on account settings or promotions)
Step 7: Tax Considerations
If you’re transferring between two Traditional IRA accounts and use the direct transfer method, the transaction is typically tax-free.
📝 Important: Ensure the transfer occurs within 60 days to avoid potential taxable events. If unsure, consult a tax advisor for guidance.
Step 8: Final Verification & Expectations
Estimated Timeline:
✅ Most transfers complete within 5–7 business days
✅ Follow up with both institutions if no confirmation after two weeks
After the transfer:
✅ Confirm that the transferred amount matches your original account balance
✅ Review your new M1 Finance IRA to ensure accuracy and proper allocation
📝 Note: Transfers involving complex assets or partial rollovers may take longer than average.
📌 Related Resources:
Final Takeaways
Transferring a Traditional IRA from Charles Schwab to M1 Finance is generally a straightforward process when approached with careful preparation and attention to detail. Key steps include choosing a direct rollover, completing all required documentation accurately, and being aware of potential tax implications. A direct transfer is typically the most tax-efficient option, helping you avoid potential penalties and unnecessary tax withholdings.
✅ Verify account details before initiating the transfer
✅ Monitor the timeline and follow up if needed
✅ Communicate with both providers to ensure a smooth transition
While most transfers are completed without issue, staying proactive throughout the process helps ensure your retirement funds are successfully and securely moved to their new destination.
📌 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/).