How to Transfer a Traditional IRA from Fidelity to Robinhood

Retirement accounts often feel like complex puzzles with seemingly endless rules. You might be looking at your Fidelity traditional IRA and wondering if the grass is greener on Robinhood’s platform, especially if their investment tools or fee structure seem more appealing.

This guide outlines each step to help ensure your retirement funds transition smoothly, while maintaining their tax-deferred status and avoiding early withdrawal penalties.

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: Understand Your Transfer Options

When moving a Traditional IRA from Fidelity to Robinhood, the two main methods are a direct transfer or a rollover. A direct transfer moves funds from one Traditional IRA to another without tax consequences, and it’s typically the simpler and more efficient option.

Transfer Mechanics

Robinhood supports both direct transfers and rollovers for Traditional IRAs. The difference lies in how the funds move:

✅ Direct transfer: Funds move directly between custodians; no tax reporting involved

❌ Rollover: You receive the funds and must deposit them into your new account within 60 days—this method carries more risk and additional rules

📝 Tip: A direct transfer is generally faster, cleaner, and involves less paperwork.

Step 2: Prepare Your Robinhood IRA

Before you can transfer anything, you’ll need to:

✅ Create a Robinhood account
✅ Complete Robinhood’s IRA application
✅ Verify your identity
✅ Ensure your account is eligible to receive a transfer

Step 3: Gather Essential Documents

Having the correct documentation on hand makes the transfer process smoother:

✅ Your Fidelity Traditional IRA account number

✅ Government-issued photo ID (e.g., driver’s license, passport)

✅ Most recent Fidelity IRA statement

✅ Social Security Number

✅ Current contact information

📝 Pro Tip: Make sure your name, SSN, and address match exactly between Fidelity and Robinhood to prevent transfer delays.

Step 4: Initiate the Transfer Process

Contact Robinhood to start the transfer. They typically use the Automated Customer Account Transfer Service (ACATS) to move your funds. You’ll need to:

1. Log into your Robinhood account

2. Navigate to the IRA transfer section

3. Select Fidelity as your current provider

4. Enter your existing IRA account details

✏️ Hypothetical Example: John initiated a direct transfer via Robinhood’s app and received confirmation of the completed move within 5–7 business days.

Step 5: Know the Fee Policy

Fidelity does not charge a fee to transfer assets out of your account. However, a $50 account closeout fee may apply if you fully close your IRA.

Robinhood offers some fee protection:

📝 Important Note: Not all transfers will qualify for the reimbursement, so verify the specific details with Robinhood.

Step 6: Consider Tax Implications

Traditional IRA transfers between similar account types are typically non-taxable events. However, you should:

📝 Tip: Consult a tax professional if you’re unsure about your transfer type.

Step 7: Monitor the Transfer

Once the transfer is in motion:

✅ Track progress on both platforms

✅ Verify that the full balance moved over

✅ Ensure no taxes or fees were assessed

📝 Pro Tip: Save a copy of all transfer documentation for your personal and tax records.

Step 8: Manage Your New Robinhood IRA

Once transferred, review your investment strategy:

✅Check your current asset allocation

✅Understand Robinhood’s investment options

✅Consider consulting a financial advisor for personalized guidance

Final Thoughts on Your IRA Transfer Journey

Transferring your Traditional IRA from Fidelity to Robinhood can be a smooth experience with proper planning. The most important considerations are:

✅ Choosing a direct transfer to maintain tax-deferred status
✅ Ensuring account information and documentation are accurate
✅ Understanding potential fees and reimbursement policies
✅ Following up to confirm the full transfer and account activity

While the process is usually straightforward, take the time to verify each step and ask questions along the way—especially if your IRA includes specialized assets or if you’re navigating your first transfer.

📌 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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