So, you're looking to get money out of your Fidelity investments? Excellent choice! Whether you're planning a big purchase, covering an unexpected expense, or finally enjoying the fruits of your long-term investing, knowing how to access your funds efficiently is crucial. This guide will walk you through the various methods, important considerations, and common questions, so you can navigate the process with confidence.
Let's dive in!
Getting Your Money: A Step-by-Step Fidelity Withdrawal Guide
The process of withdrawing money from Fidelity can vary slightly depending on the type of account you have (brokerage, IRA, 401(k), etc.) and how you want to receive the funds. However, the core steps remain similar.
Step 1: Identify Your Account and What You Want to Withdraw
Before you click a single button, let's get organized. What kind of Fidelity account holds the money you want to withdraw?
Fidelity Brokerage Account: This is generally the most straightforward. Money in a standard brokerage account is typically accessible with fewer restrictions, though capital gains taxes might apply if you're selling appreciated assets.
Fidelity Cash Management Account: If you have one of these, it's essentially like a checking account, and accessing funds is very similar to a traditional bank withdrawal.
Fidelity IRA (Traditional, Roth, SEP, SIMPLE): These accounts have specific IRS rules regarding withdrawals, especially before age 59½. Penalties and taxes can apply to early withdrawals of earnings.
Fidelity 401(k) or Other Employer-Sponsored Retirement Plan: These are often the most restrictive. Withdrawals typically require you to meet specific conditions (e.g., termination of employment, hardship, age 59½) to avoid penalties. Your specific plan rules will govern.
Fidelity 529 College Savings Plan: Funds from these accounts are generally for qualified education expenses. Non-qualified withdrawals can be subject to taxes and penalties.
Fidelity HSA (Health Savings Account): These are designed for qualified medical expenses. Non-qualified withdrawals may be taxed and penalized.
Once you've identified the account type, think about what you want to withdraw:
Cash Balance: If you have a cash balance in your account (money that isn't currently invested), this is the easiest to withdraw.
Invested Funds (Stocks, Mutual Funds, ETFs, etc.): If your money is invested, you'll generally need to sell those investments first to convert them to cash before you can withdraw. This process typically settles within 1-2 business days for most securities, making the cash available for withdrawal.
Step 2: Log In to Your Fidelity Account Online
This is your starting point for most withdrawal methods.
Go to Fidelity.com in your web browser.
Locate the "Log In" button, usually in the top right corner.
Enter your User ID and Password.
You may encounter a two-factor authentication step for added security. Have your phone or chosen authentication method ready.
Step 3: Navigate to the "Transfer" or "Move Money" Section
Once logged in, look for a menu option related to "Transfers," "Move Money," or "Accounts & Trade" (and then "Transfers"). The exact wording might vary slightly, but it's usually prominent.
On the Account Summary page, look for an option like "Manage Investments" and then "Move or withdraw cash" under the "Cash" heading. This is a common path for many Fidelity users.
Step 4: Choose Your Withdrawal Method
Fidelity offers several ways to get your money, each with its own timing and convenience. Select the method that best suits your needs.
Sub-heading: Electronic Funds Transfer (EFT) to Your Bank Account (Most Common)
This is by far the most popular and convenient way to transfer money from Fidelity to your external bank account.
Select "Withdraw Cash" or "Transfer to Bank": Within the "Move Money" section, you'll typically see an option to transfer funds to a linked bank account.
Choose the "From" Account: Select the Fidelity account from which you want to withdraw money. Make sure the cash balance is sufficient, or that you've already sold investments to create a cash balance.
Choose the "To" Account:
Existing Linked Bank Account: If you've previously linked a bank account to Fidelity, it will appear as an option. This is generally the fastest EFT method once established.
Add a New Bank Account: If your bank account isn't linked, you'll need to add it. This usually involves providing your bank's routing number and your account number. Fidelity will then need to verify this new account, which might take a few business days. They often do this by sending small "test" deposits that you'll need to confirm.
Enter the Amount: Type in the amount you wish to withdraw.
Review and Confirm: Double-check all the details – the Fidelity account, the recipient bank account, and the amount.
Submit Your Request: Click "Confirm" or "Submit."
Processing Time: EFTs typically take 1-3 business days to arrive in your bank account. If you initiate the transfer before 4 PM ET on a business day, it often processes the same day. Transfers initiated after 4 PM ET or on weekends/holidays will process the next business day.
Sub-heading: Bank Wire Transfer (Fastest for Large Sums)
Wire transfers are the quickest way to move money, often arriving on the same day if initiated early enough. They are ideal for large sums.
Select "Send a Wire Out of Fidelity": Look for this option within the "Move Money" or "Transfers" section.
Provide Recipient Information:
For wires to your own account, you'll need your bank's routing number and your account number.
For wires to someone else or a business, you'll need their full name, address, contact information, and their bank's routing and account numbers.
Enter the Amount: Be aware that wire transfers often have a minimum amount ($100 at Fidelity) and daily limits (up to $1 million per day per client at Fidelity, though you can call customer service for larger amounts).
Review and Confirm: Carefully verify all details, as wire transfers are difficult to reverse.
Submit Your Request: You may need to go through an additional security step.
Processing Time: Wires initiated before 4 PM ET on a business day are typically received the same day. Those initiated after this time will generally be processed on the next business day.
Fees: Fidelity does not charge fees for outgoing wire transfers, but your receiving bank might.
Sub-heading: Request a Paper Check
While slower, receiving a paper check is still an option for those who prefer it or don't have a linked bank account.
Select "Request a Check": This option is usually found under "Checks and Stock Certificates" within the "Transfers" section.
Choose Account and Amount: Specify the Fidelity account and the amount.
Provide Mailing Address: You can have the check sent to your record address or to your bank account for deposit.
Review and Confirm: Verify all the information.
Processing Time: Paper checks typically arrive within 5-7 business days via US Mail after your request is received.
Fees: There are generally no fees from Fidelity for requesting a check.
Sub-heading: ATM/Debit Card (for Cash Management Accounts)
If you have a Fidelity Cash Management Account, you'll receive a debit card that allows you to withdraw cash at ATMs worldwide.
Locate an ATM: Find any ATM that accepts Visa, Plus, or Star networks.
Insert Your Debit Card: Follow the on-screen prompts.
Enter Your PIN:
Select "Withdrawal":
Enter Amount: Be mindful of daily ATM withdrawal limits set by Fidelity and the ATM operator.
Receive Cash:
Processing Time: Instant cash withdrawal.
Fees: Fidelity Cash Management Accounts offer reimbursement for all ATM fees charged by other banks. For other Fidelity brokerage accounts, ATM fee reimbursement may vary.
Important Note: This option is primarily for funds held in a Fidelity Cash Management Account. While you can link a debit card to a brokerage account, be aware of available cash and potential settlement times if you just sold investments.
Step 5: Consider Tax Implications (Crucial!)
This is perhaps the most important consideration when withdrawing money from investments. The tax implications vary significantly based on your account type and how long you've held the investments. Always consult with a qualified tax advisor before making significant withdrawals, especially from retirement accounts.
Sub-heading: Taxable Brokerage Accounts
Capital Gains Tax: If you sell investments in a taxable brokerage account for a profit, you'll owe capital gains tax.
Short-term capital gains (investments held for one year or less) are taxed at your ordinary income tax rate, which can be as high as 37%.
Long-term capital gains (investments held for more than one year) are generally taxed at more favorable rates (0%, 15%, or 20% for most taxpayers, depending on your income).
Tax-Loss Harvesting: Consider if you have any losses in other investments that you can sell to offset your gains, potentially reducing your tax burden.
Sub-heading: Retirement Accounts (IRAs, 401(k)s, etc.)
Withdrawals from retirement accounts are subject to specific IRS rules.
Traditional IRA/401(k):
Before Age 59½: Generally, withdrawals are subject to your ordinary income tax rate plus a 10% early withdrawal penalty, unless an IRS exception applies (e.g., first-time home purchase, qualified education expenses, disability, birth/adoption expenses).
After Age 59½: Withdrawals are taxed as ordinary income, but the 10% early withdrawal penalty is waived.
Required Minimum Distributions (RMDs): At age 73 (or 75 for those turning 64 after 2029), you must start taking RMDs from traditional IRAs and 401(k)s. Fidelity will calculate this for you and make it easy to withdraw.
Roth IRA:
Contributions: You can withdraw your Roth IRA contributions at any time, for any reason, tax-free and penalty-free.
Earnings: To withdraw earnings tax-free and penalty-free, your Roth IRA must have been open for at least 5 years (the "5-year aging rule") AND you must meet one of the following conditions:
Age 59½ or older
Qualified first-time home purchase (up to $10,000 lifetime limit)
Death or disability
If you don't meet these criteria, earnings withdrawals may be subject to taxes and a 10% penalty.
SIMPLE IRA: Withdrawals from a SIMPLE IRA can be subject to a higher 25% penalty if taken within 2 years of your first contribution.
401(k) Hardship Withdrawals: While these allow you to avoid the 10% penalty for certain "immediate and heavy financial needs," the withdrawal is still subject to income tax.
Sub-heading: Other Tax-Advantaged Accounts (529, HSA)
529 College Savings Plans: Qualified withdrawals for educational expenses are tax-free. Non-qualified withdrawals of earnings are subject to income tax and a 10% penalty.
HSAs: Qualified withdrawals for medical expenses are tax-free. Non-qualified withdrawals are subject to income tax and a 20% penalty.
Step 6: Monitor Your Transfer
After initiating your withdrawal, you can usually track its status within the "Activity & Orders" or "History" section of your Fidelity account. You'll typically receive email confirmations when the transfer is initiated and completed.
Important Considerations Before Withdrawing
Settlement Period: Remember that when you sell investments, it takes 1-2 business days for the sale to settle and the cash to become available for withdrawal. Don't plan to withdraw immediately after selling if you need the funds urgently.
Withdrawal Limits: Fidelity, like other financial institutions, may have daily or transaction limits for certain withdrawal methods (e.g., ATM withdrawals, EFTs). Be aware of these limits, especially for large sums.
Account Minimums: Ensure your withdrawal doesn't drop your account balance below any required minimums for specific account types or services you utilize at Fidelity.
Impact on Financial Goals: Withdrawing money, especially from retirement or long-term investment accounts, can significantly impact your future financial goals. Always consider the long-term consequences.
Fraud Prevention: Fidelity employs robust security measures. Be prepared for potential security checks, especially for large or unusual withdrawal requests.
10 Related FAQ Questions
Here are some quick answers to common questions about withdrawing money from Fidelity:
How to check my available balance for withdrawal?
You can check your "Available to Withdraw" balance by logging into your Fidelity account and navigating to your Account Summary or Portfolio page. This balance reflects settled cash that is ready for withdrawal.
How to link a new bank account to Fidelity?
Log in to Fidelity.com, go to "Transfers" or "Move Money," and look for an option to "Link a Bank" or "Add a Bank Account." You'll need your bank's routing number and your account number. Fidelity will usually verify this by sending small test deposits.
How to expedite a Fidelity withdrawal?
The fastest way to get money out of Fidelity is via a bank wire transfer, which typically arrives the same business day if initiated before 4 PM ET. Electronic Funds Transfers (EFTs) are generally 1-3 business days.
How to avoid taxes on Fidelity withdrawals?
You cannot avoid taxes on withdrawals from taxable brokerage accounts if you're realizing capital gains. However, for Roth IRAs, qualified withdrawals (contributions and earnings after 5 years and age 59½, or other qualifying events) are tax-free. For HSAs and 529 plans, withdrawals used for qualified expenses are tax-free.
How to withdraw from a Fidelity 401(k)?
Withdrawing from a 401(k) typically requires specific events like termination of employment, reaching age 59½, or qualifying for a hardship withdrawal. You'll usually need to go through your plan administrator or the NetBenefits section of Fidelity.com. Early withdrawals generally incur a 10% penalty plus taxes, unless an exception applies.
How to take an RMD from my Fidelity IRA?
Fidelity calculates your Required Minimum Distribution (RMD) for your Fidelity IRAs annually. You can log in, navigate to your IRA account, and look for "RMD" options to easily take your distribution. You can also set up recurring RMDs.
How to track the status of my Fidelity withdrawal?
After initiating a withdrawal, you can track its status by logging into your Fidelity account and going to the "Activity & Orders" or "History" section.
How to get cash from Fidelity without a bank account?
You can request a paper check to be mailed to you. This is a slower method, taking 5-7 business days to arrive.
How to set up recurring withdrawals from Fidelity?
For some account types, particularly retirement accounts for RMDs or regular income, Fidelity allows you to set up automatic, recurring withdrawals to a linked bank account. Look for "Personal Withdrawal Service" or similar options within your account management.
How to contact Fidelity customer service for withdrawal help?
If you encounter any issues or have complex withdrawal needs, you can contact Fidelity customer service by phone at 1-800-343-3548 (for general inquiries) or specific numbers listed for different account types on their website. They also offer online chat and secure message options.
