Moving your investments can feel like a big undertaking, but with a clear plan, it can be a surprisingly smooth process. Whether you're consolidating accounts, seeking different investment options, or simply prefer Charles Schwab's platform, transferring your money from Fidelity to Charles Schwab is a common and manageable task.
Ready to take control of your financial future and make this move? Let's dive in!
A Comprehensive Guide to Moving Money from Fidelity to Charles Schwab
This guide will walk you through the entire process, from preparation to confirmation, ensuring you understand each step involved in transferring your assets.
Step 1: Prepare Your Accounts for Transfer – The Crucial First Move
Before initiating any transfer, a little preparation goes a long way in preventing delays and headaches. This is where you set yourself up for a smooth transition.
Sub-heading: Understand What You're Transferring
- Whole Account vs. Partial Transfer: Do you want to move everything from Fidelity to Schwab, or just specific investments or cash?
- Full Account Transfer: This is often the simplest, as it moves all eligible assets.
- Partial Account Transfer: You'll need to specify exactly which securities or how much cash you want to move. Be aware that fractional shares generally do not transfer via the Automated Customer Account Transfer Service (ACATS) system and will be liquidated to cash.
- Account Types: Ensure the account types match at both institutions. For example, a Roth IRA at Fidelity should transfer to a Roth IRA at Charles Schwab. If you're transferring a 401(k), it will likely involve a direct rollover to a Charles Schwab IRA.
- Verify Your Holdings: Take a snapshot of your current Fidelity holdings. This includes account numbers, current balances, and specific investment details (e.g., stock symbols, number of shares, mutual fund names). A recent statement from Fidelity will be invaluable here.
Sub-heading: Ensure Your Information Matches
This is critically important! Any discrepancies in your name, address, or Social Security Number between your Fidelity and Charles Schwab accounts can cause significant delays. Double-check:
- Full Legal Name: Must be identical on both accounts.
- Address: Ensure your mailing and physical addresses are the same.
- Social Security Number/Tax ID: Verify it's accurate on both sides.
If there are discrepancies, contact Fidelity and/or Charles Schwab to update your information before initiating the transfer.
Sub-heading: Address Any Pending Activity
- No Pending Trades: Ensure there are no outstanding buy or sell orders in your Fidelity account.
- No Pending Deposits/Withdrawals: All funds should be settled.
- No Active Debits/Credits: This includes things like recurring investments or bill payments tied to your Fidelity account.
Step 2: Open Your Charles Schwab Account – Your New Financial Home
If you don't already have one, your next step is to open the corresponding account at Charles Schwab.
Sub-heading: Online Account Opening is Quick
Charles Schwab offers a straightforward online account opening process, which typically takes about 10-15 minutes. You'll need to provide:
- Personal information (name, address, date of birth, Social Security Number).
- Employment information.
- Financial information (income, net worth).
- Details about the account you wish to open (e.g., Individual Brokerage, Roth IRA, Traditional IRA).
Sub-heading: Link External Accounts (Optional, but Recommended for Future Transfers)
While not strictly required for an ACATS transfer, it's a good idea to link your bank account to your new Charles Schwab account. This will make it easier to transfer cash in and out of Schwab in the future via electronic funds transfer (EFT).
Step 3: Initiate the Transfer from Charles Schwab – Let Schwab Do the Heavy Lifting
This is the most critical step. You initiate the transfer from the receiving institution (Charles Schwab), not the sending institution (Fidelity). Schwab will then communicate with Fidelity to facilitate the transfer.
Sub-heading: Access the Account Transfer Tool
Log in to your Charles Schwab account online. Look for a section related to "Transfers" or "Move Money." Schwab typically has an online account transfer tool designed for this purpose.
Sub-heading: Provide Fidelity Account Details
You'll be prompted to enter information about your Fidelity account, including:
- Name of the firm: Fidelity
- Fidelity account number(s): Be precise with these numbers.
- Account type: Specify if it's a brokerage account, Roth IRA, Traditional IRA, etc.
- Full or Partial Transfer: Select your preference. If partial, you'll list the specific assets or cash amount.
Sub-heading: Authorize the Transfer
You will need to authorize the transfer electronically or by signing a form. This gives Schwab permission to request your assets from Fidelity. You may be asked to upload a copy of your most recent Fidelity statement (dated within 90 days) to help verify your account.
Step 4: Monitor and Track Your Transfer – Patience is Key
Once you've initiated the transfer, it's a waiting game, but you can track its progress.
Sub-heading: Understanding the ACATS Process
Most transfers between brokerages like Fidelity and Charles Schwab utilize the Automated Customer Account Transfer Service (ACATS). This is an electronic system designed for efficient and secure transfers of securities.
Sub-heading: Typical Transfer Timeline
- Generally, ACATS transfers take 3-7 business days. However, this can vary based on several factors:
- Complexity of assets: Some complex or less liquid assets may take longer.
- Pending activity: If you missed a step in preparation, it could delay the transfer.
- Accuracy of information: Mismatched details are the biggest cause of delays.
- Cash transfers (ACH/EFT) generally take 1-3 business days. Wire transfers are typically faster, often same-day, but may incur fees.
Sub-heading: Check Your Transfer Status
Both Fidelity and Charles Schwab typically offer online tools to track the status of your transfer. You may also receive email notifications. Keep an eye on both accounts during this period. Your assets will likely be unavailable for trading at Fidelity once the transfer process begins, and they won't appear in your Schwab account until the transfer is complete.
Step 5: Confirm Your Assets at Charles Schwab – The Final Verification
Once the transfer is complete, it's crucial to verify everything has arrived as expected.
Sub-heading: Verify Holdings and Balances
- Match Original Holdings: Compare the assets and cash transferred to your Charles Schwab account against your initial record of Fidelity holdings.
- Cost Basis: Ensure your cost basis information for transferred securities has been accurately moved over. This is important for tax purposes. If it's missing, you may need to provide it to Schwab.
- Fractional Shares: Remember that any fractional shares from Fidelity were likely sold for cash. Confirm that the cash equivalent has arrived.
Sub-heading: Address Any Discrepancies
If you notice any issues or missing assets, contact Charles Schwab's customer service immediately. They can investigate and rectify any problems.
Important Considerations & Tips
- Fees:
- Fidelity: Fidelity may charge an account closeout fee (around $50) if you transfer your entire account and close it. For partial transfers, this fee usually doesn't apply.
- Charles Schwab: Charles Schwab typically does not charge fees for receiving incoming account transfers.
- Transfer Bonuses: Sometimes, Charles Schwab offers incentives or transfer bonuses for new accounts or large transfers. It's always worth asking if any are available. They may even offer to cover Fidelity's closeout fee in certain circumstances.
- Tax Implications: For most direct transfers (especially ACATS), there are generally no immediate tax consequences, as you are simply moving assets from one custodian to another. However, if you sell assets as part of a partial transfer, or if you take a direct distribution (rather than a direct rollover) from a retirement account, tax implications will arise. Always consult with a tax professional for personalized advice.
- Do Not Close Your Fidelity Account Prematurely: Do NOT close your Fidelity account until you have fully confirmed that all your desired assets have successfully transferred to Charles Schwab. If you close it too soon, it can complicate the transfer process significantly.
- Communication is Key: Don't hesitate to reach out to either Fidelity or Charles Schwab's customer service teams if you have questions or encounter any issues.
- Fidelity Customer Service: 1-800-343-3548 (General Investments) or check their website for specific department numbers.
- Charles Schwab Customer Service: 1-800-435-4000 or use their online chat/branch locator.
10 Related FAQ Questions
How to transfer a Roth IRA from Fidelity to Charles Schwab?
You initiate a direct trustee-to-trustee transfer through Charles Schwab by opening a Roth IRA there and then instructing Schwab to pull the assets from your Fidelity Roth IRA.
How to transfer only cash from Fidelity to Charles Schwab?
You can initiate an Electronic Funds Transfer (EFT) from your Charles Schwab account, linking it to your Fidelity account's cash management features (often tied to a bank account number), or you can request a wire transfer.
How to transfer specific stocks from Fidelity to Charles Schwab?
When initiating a partial ACATS transfer from Charles Schwab, you'll be prompted to list the specific stock symbols and number of shares you wish to transfer from your Fidelity account.
How to check the status of my transfer from Fidelity to Charles Schwab?
Both Fidelity and Charles Schwab typically provide online transfer trackers or status updates through your account portal. You may also receive email notifications as the transfer progresses.
How to avoid fees when transferring from Fidelity to Charles Schwab?
While Charles Schwab generally doesn't charge for incoming transfers, Fidelity might have an account closeout fee if you move your entire account. Ask Charles Schwab if they offer to reimburse this fee, especially for larger transfers.
How to transfer a 401(k) from Fidelity to Charles Schwab?
This typically involves a direct rollover. You would open an IRA (Traditional or Roth, depending on your 401(k) type) at Charles Schwab, then instruct Schwab to facilitate a direct rollover from your Fidelity 401(k).
How to handle fractional shares during a transfer?
Fractional shares generally do not transfer via ACATS. Fidelity will usually liquidate them to cash, and that cash will then be transferred to your Charles Schwab account.
How to ensure my cost basis transfers correctly?
In an ACATS transfer, cost basis information should transfer automatically. After the transfer, check your Charles Schwab account to confirm its accuracy. If it's missing or incorrect, you may need to provide the cost basis details to Schwab, usually by sending them your Fidelity statements.
How to transfer a joint account from Fidelity to Charles Schwab?
The names on the joint account at Fidelity must exactly match the names on the joint account you open at Charles Schwab for a smooth ACATS transfer.
How to get help if my transfer from Fidelity to Charles Schwab is delayed?
First, check the online transfer status trackers at both Fidelity and Charles Schwab. If the delay persists or you have specific questions, contact Charles Schwab's customer service or their dedicated transfer specialists, as they are initiating the pull.
