How to Transfer a Traditional IRA from Fidelity to Vanguard

Retirement savers often find themselves reevaluating their investment platforms when their financial goals evolve. Perhaps Fidelity’s fee structure no longer fits your strategy, or maybe Vanguard’s more competitive index fund options are a better match for your long-term objectives.

A direct transfer between these major brokerages can help you consolidate your retirement savings without triggering taxes or early withdrawal penalties.

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 Fidelity to Vanguard 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: Understanding Your IRA Transfer Landscape

Transferring your Traditional IRA from Fidelity to Vanguard requires thoughtful planning to preserve the tax-advantaged status of your account.

A direct transfer is the preferred method, as it allows you to move your retirement funds between these two reputable investment platforms without incurring taxes or penalties. Whether you’re transferring your full balance or specific assets, this approach ensures your savings continue to grow uninterrupted.

What You Might Need

✅ Fidelity traditional IRA account number

✅ Vanguard account information

✅ Government-issued ID

✅ Most recent IRA statement

✅ Stable internet access or phone connection

✅ Patience for potential 5-7 day processing time

Step 2: Preparing Your Vanguard Account

Before you initiate the transfer, set up a Traditional IRA at Vanguard. Be sure the new account matches the tax classification of your Fidelity IRA to prevent any potential tax complications.

✏️ Hypothetical Example: If you currently have a traditional IRA with pre-tax contributions at Fidelity, your new Vanguard account should also be a traditional IRA.

When creating your Vanguard account, have these details ready:

✅Social security Number

✅Employment information

✅Bank information for funding or verification

✅Beneficiary details

Step 3: Initiating the Transfer Process

Contact Vanguard’s transfer support team to begin. They will guide you through an electronic transfer process that typically takes 5-7 business days.

📝 Important Tip: Request an electronic transfer first, as it’s faster and more streamlined than paper-based methods.

Vanguard will help you complete a transfer authorization form which instructs Fidelity to move your entire account balance. This form requires:

✅Current account details

✅Transfer amount

✅Specific asset information

Step 4: Asset Transfer Considerations

Not all assets transfer identically. Most stocks and mutual funds will move “in-kind,” meaning they transfer as existing securities. However, some investments might require selling and transferring as cash.

✏️ Hypothetical Example: If you own a Fidelity mutual fund not available at Vanguard, you might need to sell that fund and transfer the cash proceeds.

Step 5: Understanding Potential Fees

Both Fidelity and Vanguard typically do not charge transfer fees for retirement accounts. However, some specific investments might incur minimal transaction costs.

📝 Reminder: It’s always advisable to confirm the most current fee structures directly with both Fidelity and Vanguard before initiating the transfer.

Step 6: Tax Implications

When done properly, direct transfers between Traditional IRAs are not taxable. The key is ensuring the money never passes through your hands. The funds maintain their tax-deferred status throughout the process.

📝 Important Note: Ensure the transfer happens directly between institutions to avoid potential 20% mandatory withholding.

Step 7: Tracking Your Transfer

Most transfers complete within one week, depending on asset complexity and processing speed. Both Fidelity and Vanguard provide online tracking for your convenience.

📝 Tip: Save all transfer documentation for your personal records.

Step 8: Final Verification

After the transfer completes, review your new Vanguard account to confirm:

✅Total balance matches original account

✅All expected assets are present

✅No unexpected transactions occurred

Final Thoughts on Transferring Your Traditional IRA

Transferring your traditional IRA from Fidelity to Vanguard is a strategic process that requires careful attention to detail. The key takeaways are simple: maintain the tax-advantaged status of your account, complete a direct transfer to avoid potential penalties, and ensure all documentation is accurate.

Your next steps should include:

✅ Verifying your Vanguard account details

✅ Initiating the direct transfer through Vanguard’s transfer team

✅ Monitoring the transfer process for completeness

📌 If you’re looking for more guidance, these resources may help:

Retirement Account Management

https://www.irs.gov/retirement-plans

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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/).