Transitioning From Fidelity Checking To Fidelity Investment

Transferring from a Fidelity checking account to a Fidelity investment account can be done in several ways, including electronic funds transfer (EFT), bank wire, paper check, or third-party payment apps like Venmo or PayPal. EFTs are digital transfers that typically take 1-3 business days to complete, while bank wires are faster, with funds usually available the same day. Before initiating a transfer, it's important to have a recent statement from your current firm and ensure your account is set up correctly for the transaction. Most transfers can be done online, but in some cases, you may need to print and mail a prefilled form.

Transferring a workplace account like a 401(k) or 403(b)

Firstly, you need to open a rollover IRA account if you don't already have one. This is necessary to transfer your former employer's plan funds into. If there are pre-tax and post-tax contributions in your 401(k), you may also need to open a Roth IRA.

Secondly, contact your old 401(k) provider. If your old 401(k) provider is Fidelity, you can do the entire rollover through NetBenefits, without any additional paperwork, and the money will be directly transferred. If your old 401(k) is with a different provider, you will need to contact them to start the rollover process, which may include providing them with some paperwork.

Thirdly, deposit your money into your Fidelity account. If your old 401(k) is with a different provider, you can have the money sent directly to Fidelity, or deposit it yourself. It is important to note that if the check is made payable to you, your plan administrator is required by the IRS to withhold 20% for taxes, and you will only have 60 days to put the money back into a tax-advantaged account. To avoid this, the check should be made payable to "Fidelity Management Trust Company (or FMTC), FBO [your name]," and does not need to be endorsed.

Finally, invest your money. Once your money is in your IRA, you will need to invest it to allow it to grow over time. You can choose to manage your investments yourself, or you can opt for a professionally managed solution, which will incur a fee.

The entire process typically takes 3-5 weeks, or longer, to complete for workplace plans not held at Fidelity.

Transferring an individual retirement account (IRA)

Step 1: Set up a new account

If you don't already have an IRA with Fidelity, you'll need to open one. This is necessary to transfer money from your former employer's plan or another institution into this account. You can choose from a variety of IRA options, such as a traditional IRA, Roth IRA, or Rollover IRA, depending on your specific needs and tax considerations.

Step 2: Contact your previous IRA provider

Reach out to your previous IRA provider to initiate the transfer process. You may need to call them or start the process online. They will likely require some paperwork, such as a Letter of Acceptance (LOA) from Fidelity or their own forms. If your IRA includes company stock, it's recommended to discuss this with a Fidelity rollover specialist before proceeding.

Step 3: Transfer your funds

You have a few options for transferring your funds to your new Fidelity IRA. You can choose to have the money sent directly to Fidelity for deposit into your account, or you can deposit it yourself. If you choose to have the check made payable to Fidelity, it will be considered a direct rollover, maintaining the tax-deferred status of your funds. Alternatively, you can have the check sent to you, but be sure to deposit it into your IRA within 60 days to avoid taxes and early withdrawal penalties.

Step 4: Track your transfer

Once you've initiated the transfer, you can track its progress using the Status Tracker on the Fidelity website. Most transfers are completed within 3-5 business days, but some may take longer, depending on the specifics of your request. You will receive an email notification when your assets have been deposited into your Fidelity IRA.

Step 5: Invest your money

After your funds have been transferred to your Fidelity IRA, it's time to choose your investments. This is a crucial step, as investing is how your money has the potential to grow over time. You can choose to invest in stocks, bonds, mutual funds, or other security types. You may also consider seeking guidance from a financial advisor to help you make informed investment decisions.

Remember to review all your options and consider any applicable fees and features before finalising the transfer of your IRA to Fidelity.

Transferring a brokerage account

Step 1: Prepare the Necessary Documents

Before initiating the transfer, it's important to gather the required information. Download a recent digital statement from your current firm, as you'll need it to complete the transfer process. This statement will contain important account information, such as the account type, holdings, and balances.

Step 2: Understand the Transfer Process

A transfer of assets (TOA) is when you move all or part of an account from one financial firm to another without selling your holdings. This includes various security types, such as stocks, bonds, mutual funds, and retirement accounts like IRAs and HSAs.

Step 3: Initiate the Transfer

You can start the transfer process by submitting a request online. Most transfers are done electronically and take 3-5 business days to complete, but some may take longer. You will need to provide specific information, such as the account details and the amount you wish to transfer.

Step 4: Provide Additional Documentation (If Necessary)

In some cases, additional documentation may be required. For example, if you've experienced a significant life event like marriage, divorce, or the loss of a loved one, you may need to provide relevant legal documents such as a marriage certificate or a death certificate.

Step 5: Track the Transfer Status

You can track the progress of your transfer using the Status Tracker tool on the Fidelity website. This tool will allow you to monitor the transfer in real time and give you an estimated completion date.

Step 6: Complete the Transfer

Once the transfer is complete, you will receive an email notification. At this point, you will have full access to your funds and securities in your new Fidelity account.

It's important to note that while Fidelity does not charge a fee for transferring assets, your current firm may impose transfer fees. Additionally, some assets may need to be liquidated before the transfer if they cannot be held by Fidelity.

Transferring a health savings account (HSA)

Step 1: Prepare the Required Information

Before initiating the transfer, ensure you have the following details ready:

• Your other HSA provider's name and address.
• A recent statement from your current HSA provider. This will be needed to attach to your transfer request and to easily find the information required to process your transfer.

Step 2: Submit Your Transfer Request

You can submit your transfer request online. Log in to your Fidelity account and follow the prompts to initiate the transfer. During this step, you will be asked to provide the details mentioned in Step 1.

Step 3: Fidelity Contacts Your Current HSA Provider

Once you have submitted your transfer request, Fidelity will reach out to your current HSA provider on your behalf to request your assets.

Step 4: Your Current HSA Provider Processes the Request

Your current HSA provider will then process the request and send your assets to Fidelity. This step typically takes around 2-5 weeks, depending on how quickly your current HSA provider responds.

Step 5: Fidelity Deposits Your Assets

Once Fidelity receives your assets, they will deposit them into your new Fidelity HSA account.

Additional Considerations:

• If your HSA money is invested, it may be held in two separate accounts: a bank account for your cash balance and a brokerage account for your investments. Both account types are eligible for transfer to Fidelity, but a separate transfer request may be required for each one. Your current HSA provider can guide you through this process.
• Some financial institutions do not allow in-kind transfers of investments held in an HSA, so you may be required to liquidate any investments and transfer them as cash.
• There are no fees for opening a Fidelity HSA account, and you can transfer your HSA to Fidelity at any time.

Transferring money or shares

There are several ways to transfer money to a Fidelity account. You can transfer money from a bank account with an electronic funds transfer (EFT). You can also wire money from a bank or third-party account. Alternatively, you can deposit a check via mobile upload or mail a paper check.

If you are transferring money from a bank account, you will need to link your bank account to your Fidelity account. You can do this by providing your bank account's routing and account numbers. You may also log in to your bank with your username and password for a faster connection between the accounts.

If you are transferring money from a third-party app, such as Venmo or PayPal, you will need to link your Fidelity account or card to the app.

If you are transferring money from a checking account that is under a different name from the Fidelity account, you will need to fill out a Third-Party Electronic Funds Transfer (EFT) Authorization form.

If you are transferring shares, you can do so by selling specific lots of mutual fund shares.

Most transfers take 3-5 business days to complete, but some may take longer.

Frequently asked questions