How to Transfer a Traditional IRA from Charles Schwab to Robinhood

Traditional IRAs offer valuable long-term savings opportunities, and over time, your preferences for managing those investments may shift. If you currently hold a Traditional IRA with Charles Schwab and are considering moving it to Robinhood, it’s important to understand the steps involved. A proper transfer ensures your retirement savings remain tax-advantaged and uninterrupted as you transition between providers.

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 Robinhood 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 Current IRA Situation

Transferring a Traditional IRA from Charles Schwab to Robinhood involves several steps and a clear understanding of each provider’s process. 

Before you begin, confirm that your current Traditional IRA with Charles Schwab is eligible for transfer and meets all necessary requirements. 

Decide whether you want to move your entire account balance or just a specific portion. Charles has a standard processing fee of $50 for full account transfers. The good news is that partial transfers typically don’t incur additional charges. Make sure you’re comfortable with this potential cost before proceeding.

Step 2: Prepare Your Robinhood Account 

If you don’t already have one, open a Robinhood IRA account. During the setup process, ensure your personal information exactly matches what’s listed on your Charles Schwab account.

✅ Complete Robinhood’s IRA application

✅ Provide accurate personal details (name, address, SSN, etc.)

✅ Verify your identity as required

📝 Note: Any discrepancies between account information may delay the transfer.

Step 3: Gather Essential Transfer Documents

Being prepared with the right documents helps ensure a smoother transfer process. You’ll want to have these items ready:

✅ Your Charles Schwab Traditional IRA account number

✅ Government-issued photo identification

✅ Most recent IRA statement from Charles Schwab

✅ Social Security number

✅ Current contact information

✏️ Hypothetical Example: John gathered all necessary documents beforehand and completed his IRA transfer in seven business days.

Step 4: Choose Your Transfer Method

There are two common ways to transfer your IRA:

1. Direct Rollover (Recommended): Funds move directly from Schwab to Robinhood, helping you avoid tax withholding and penalties.

2. Indirect Rollover: Funds are sent to you, and you must deposit them into your Robinhood IRA within 60 days to avoid taxes or penalties.

📝 Note: Direct rollovers are generally recommended to maintain tax-deferred status and reduce complexity.

Step 5: Initiate the Transfer Process

Log into your Robinhood account and begin the transfer through their IRA transfer portal, which uses the ACATS (Automated Customer Account Transfer Service) system.

✅ Select Charles Schwab as the sending institution

✅ Enter accurate account details

✅ Indicate whether the transfer is full or partial

Step 6: Understand Potential Transfer Fees

✏️ Hypothetical Example: Sarah transferred her $10,000 IRA to Robinhood and had her Charles Schwab transfer fee reimbursed through Robinhood’s reimbursement policy.

Step 7: Consider Tax Implications

If completed as a direct transfer, moving a Traditional IRA from Schwab to Robinhood should not trigger taxes. However, it’s important to be aware of:

✅ 60-day rollover window

✅ Potential early withdrawal penalties if not executed properly

✅ Maintaining the same IRA account type (Traditional to Traditional)

📝 Note: Consult a tax professional if you have questions about your specific tax situation.

Step 8: Final Verification and Completion

After initiating the transfer, monitor both your Charles Schwab and Robinhood accounts. The process typically takes 5-10 business days, though timeframes can vary based on account activity or documentation review. Confirm that:

✅ Funds have been successfully transferred

✅ No unexpected fees were charged

✅ Your investment positions have been transferred correctly

📌 If you need any additional guidance, be sure to check out these related articles:

Final Insights on IRA Transfers

Transferring a Traditional IRA from Charles Schwab to Robinhood involves several critical steps that require careful attention. Key takeaways include selecting the appropriate transfer method—direct rollovers are generally recommended—and ensuring that account information matches exactly between providers to avoid delays. Be mindful of the 60-day deadline if pursuing an indirect rollover, and confirm whether any transfer or account closure fees apply.

✅ Prepare required documentation in advance

✅ Verify your identity and account type

✅ Follow up with both institutions to track progress

While most IRA transfers are straightforward, taking the time to understand the process can help ensure a smooth, penalty-free transition for your retirement funds.

📌 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/).