How to Transfer a Traditional IRA from Merrill Edge to Fidelity

Retirement savings aren’t one-size-fits-all, and over time, your financial goals or platform preferences may shift. If you’re considering moving your Traditional IRA from Merrill Edge to Fidelity, understanding the process can help ensure your transfer is smooth, tax-efficient, and aligned with your long-term retirement strategy.

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 Merrill Edge 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.

Step 1: Understand Your Transfer Goals

Before moving your Traditional IRA from Merrill Edge to Fidelity, clarify your reasons for the transfer. You may be consolidating retirement accounts, seeking broader investment options, or aiming to reduce costs. Understanding your objectives can help guide your decisions throughout the process.

✏️ Hypothetical Example: If you’re looking to lower investment costs or gain access to different asset classes, a transfer could better support your long-term retirement strategy.

Step 2: Prepare Your Existing Merrill Edge Account

Review your current IRA for any recent contributions, pending transactions, or restrictions that could delay a transfer. Ensure the account is active and eligible for a direct transfer.

📝 Important: To avoid tax consequences, confirm you’re transferring between the same account types — in this case, Traditional IRA to Traditional IRA.

Step 3: Gather Essential Documentation

Having the right information on hand can help streamline the transfer process.

What You’ll Need:

✅ Valid government-issued photo ID

✅ Most recent Merrill Edge IRA statement

✅ Social Security Number

✅ Contact information for both Merrill Edge and Fidelity

✅ Completed account transfer form

✏️ Tip: Preparing all documents in advance can minimize delays and reduce back-and-forth with customer support.

Step 4: Open a Fidelity Traditional IRA

You’ll need to open a new Traditional IRA at Fidelity before initiating the transfer. This can be done online or over the phone. Ensure the account is specifically set up as a Traditional IRA to match your existing account type.

📝 Pro Tip: Double-check that your personal and account details match what’s on file with Merrill Edge to avoid processing issues.

Step 5: Initiate the Transfer Process

You can start the transfer in several ways:

Fidelity will typically coordinate directly with Merrill Edge to complete the transfer. This process is known as a direct transfer and helps minimize potential tax complications.

Step 6: Understand Potential Transfer Fees

Most providers, including Fidelity and Merrill Edge, typically do not charge fees for IRA transfers. However, be aware of:

✅ Merrill Edge’s $49.95 account closure fee if applicable

✅ Potential transaction fees for selling specific investments

✅ Any account maintenance fees at your current provider

Step 7: Navigate Tax Considerations

Direct transfers between Traditional IRAs are generally not taxable. However, it’s important to follow IRS rules carefully.

✅ Avoid having funds sent to you personally
✅ Do not treat this as a distribution
✅ Indirect rollovers must be completed within 60 days and may be limited to one per year

📝 Note: Always keep records of the transfer for tax purposes, even when taxes aren’t owed.

Step 8: Verify and Confirm Transfer Completion

After initiating the transfer, follow up with both Merrill Edge and Fidelity to confirm:

✅ Transfer has been processed

✅ Entire account balance has been moved

✅ No outstanding transactions or holds

✏️ Note: Most direct IRA transfers complete within 5–10 business days, but processing times can vary based on account activity or verification steps. Aalways verify the specific timeline with both financial institutions.

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

Wrapping It Up

Transferring a Traditional IRA from Merrill Edge to Fidelity involves a strategic process that requires careful documentation and attention to detail. The most important steps include verifying that account types match, gathering key documents such as your ID and recent statements, and carefully completing the transfer process to avoid potential delays or tax issues.

When done correctly as a direct transfer, this move can help you align your retirement strategy with the tools, services, or investment options that best support your long-term goals.

Next Steps:

✅Open a Traditional IRA at Fidelity

✅Gather all necessary identification and account documents

✅Start your transfer using Fidelity’s online transfer tool or by contacting customer support

📌 Want to dive deeper? Here are some other helpful (and free) 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.

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/).