Of course! Here is a detailed, step-by-step guide on how to link your Vanguard account to Fidelity, focusing on a full asset transfer.
Ready to Make the Move? Here's Your Complete Guide to Linking Vanguard to Fidelity
So, you've decided to consolidate your investments and want to move your assets from Vanguard to Fidelity. Excellent choice! Both are industry powerhouses, but Fidelity often wins praise for its user-friendly platform, robust customer service, and a wider range of investment options, including commission-free Vanguard ETFs. The process is much simpler than you might think, and this guide will walk you through every step, ensuring a smooth transition.
Let's dive in!
Step 1: Get Your Ducks in a Row (and a Statement, Too!)
Before you initiate any transfer, it's crucial to have all your information ready. Think of this as preparing for a big move—you wouldn't start packing without knowing what you're taking, right?
First things first, what kind of accounts are you linking? Are you moving a Traditional IRA, a Roth IRA, a taxable brokerage account, or something else entirely? The type of account you're transferring is incredibly important, as the receiving account at Fidelity must be the same type. For example, a Vanguard Traditional IRA must be transferred into a Fidelity Traditional IRA.
Gather your most recent Vanguard account statement. This is your treasure map. You'll need the following information from it:
Your Vanguard account number.
The exact account registration (e.g., your name, joint ownership, trust name).
A list of all the holdings (stocks, bonds, mutual funds, ETFs) in the account.
Log in to your Fidelity account or open a new one. If you don't have a Fidelity account yet, you'll need to open one that matches the type of account you're transferring from Vanguard. For instance, if you're transferring a Vanguard Roth IRA, you'll need to open a Fidelity Roth IRA. You can do this right on the Fidelity website.
Pro Tip: If you hold Vanguard mutual funds, consider converting them to their ETF equivalents before you transfer. While you can hold Vanguard mutual funds at Fidelity, you'll likely incur a transaction fee to buy more shares. Converting to the ETF version is typically a non-taxable event and allows for commission-free trading at Fidelity. A quick call to Vanguard can get this done for you.
Step 2: Initiate the Transfer from the Fidelity Side
This is a critical point: you initiate the transfer from the receiving firm (Fidelity), not the sending firm (Vanguard). Fidelity will do all the heavy lifting and communicate with Vanguard on your behalf. This process is known as an "ACATS" (Automated Customer Account Transfer Service) transfer and is the most common and efficient way to move your assets.
Log in to your Fidelity account.
Navigate to the "Accounts & Trade" tab and select "Transfers" or a similar option for "Move an account to Fidelity."
Choose the option for "Transfer an account from another firm."
You will be prompted to select the firm you are transferring from. Select "Vanguard."
Enter your Vanguard account number and specify whether you want to transfer all or a portion of your assets.
You'll then be asked to upload your recent Vanguard statement. This is where that document you gathered in Step 1 comes in handy! Uploading it helps ensure a smooth and accurate transfer.
Confirm the receiving Fidelity account. Make sure it's the correct account type and has the matching registration.
Review all the details carefully. Double-check the account numbers, names, and the assets you are transferring. An error here could cause significant delays.
Digitally sign the transfer form and submit your request.
Step 3: Sit Back and Track Your Transfer
Once you've submitted the request, the gears start turning. Fidelity will now contact Vanguard to request the assets.
You'll receive a confirmation from Fidelity that your request has been submitted.
Most transfers take 3-5 business days to complete, but can sometimes take longer, especially if there are any discrepancies in the information or if paperwork is required.
You can track the progress of your transfer on the Fidelity website. Look for a "Status Tracker" or "Transfer Tracker" in your account dashboard.
During this time, your assets at Vanguard will be in a frozen state. You won't be able to buy, sell, or trade them until the transfer is complete. This is normal and is done to ensure the accurate transfer of shares and cost basis information.
Important Note: An in-kind transfer, which is what happens with most stocks and ETFs, means your investments are moved over as-is without being sold. This is crucial for taxable brokerage accounts, as it avoids creating a taxable event. Fractional shares, however, may be liquidated at Vanguard and transferred as cash.
Step 4: Confirm and Reinvest at Fidelity
Once the transfer is complete, you will receive a notification from Fidelity.
Log in to your Fidelity account and review your holdings.
Verify that all your assets have been transferred correctly. Check the number of shares and the cost basis for each security. The cost basis is important for tax purposes, so make sure it's accurate. If you notice any issues, contact Fidelity's customer service immediately.
Review your cash holdings. Any cash from liquidated fractional shares will be in your core position at Fidelity, usually a money market fund. You can now choose to invest this cash.
Re-establish dividend reinvestment settings. When you transfer assets, dividend and capital gains distribution elections may not carry over. Log in to your Fidelity account and update your preferences for each holding to ensure that dividends are reinvested or paid out as you prefer.
Consider your investment strategy at Fidelity. Now that your assets are in your new account, you have access to Fidelity's entire suite of investment products. You can continue to hold your Vanguard ETFs or explore Fidelity's own low-cost index funds and other offerings.
Congratulations! You have successfully linked and transferred your Vanguard account to Fidelity.
10 Related FAQs: Quick Answers to Common Questions
How to transfer a Vanguard IRA to Fidelity?
You can transfer a Vanguard IRA (Traditional, Roth, or SEP) to a Fidelity IRA by initiating a "Transfer of Assets" (TOA) request from the Fidelity website. Ensure the account types match and have your recent Vanguard statement ready.
How to move a Vanguard taxable brokerage account to Fidelity?
Move a taxable brokerage account by initiating a full or partial "in-kind" transfer of assets from the Fidelity website. This avoids selling your holdings and creating a taxable event. Fractional shares will be sold and transferred as cash.
How to transfer Vanguard mutual funds to Fidelity?
You can transfer Vanguard mutual funds to Fidelity. However, to avoid transaction fees for future purchases at Fidelity, it is highly recommended to call Vanguard and convert your mutual funds to their ETF equivalents before initiating the transfer.
How long does it take to link Vanguard to Fidelity?
An electronic ACATS transfer typically takes 3-5 business days to complete. Transfers requiring physical paperwork or with discrepancies can take longer.
How to track my Vanguard to Fidelity transfer?
After initiating the transfer on the Fidelity website, you can track its progress using Fidelity's online "Status Tracker," which is usually found in your account's dashboard or under the "Transfers" section.
How to transfer a Vanguard 401(k) to a Fidelity IRA?
This is called a "rollover." You would initiate the rollover process from Fidelity's website. They will guide you through the steps of contacting Vanguard to roll over your 401(k) assets into a new or existing Fidelity Rollover IRA.
How to transfer my cost basis from Vanguard to Fidelity?
The cost basis information for your transferred assets is included in the ACATS transfer. Fidelity will receive this information directly from Vanguard. It's a good practice to verify the cost basis for all your holdings after the transfer is complete.
How to handle fractional shares during the transfer?
Fractional shares cannot be transferred "in-kind" through the ACATS system. Vanguard will automatically sell any fractional shares and transfer the proceeds as cash to your Fidelity account.
How to transfer a Transfer on Death (TOD) account?
You can transfer an account with a Transfer on Death (TOD) registration by initiating a TOA. The new Fidelity account must also have a TOD registration with the same beneficiaries. You may need to update the beneficiary information on the Fidelity account after the transfer.
How to transfer from Vanguard to Fidelity without paying fees?
Fidelity does not charge a fee for a Transfer of Assets (TOA). However, Vanguard may charge an account closing or transfer fee. If your account value is over a certain amount (often $25,000 or more), Fidelity may reimburse you for this fee. You can submit a reimbursement request on the Fidelity website after the transfer is complete.