Fidelity charges to close accounts!

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TwstdSista
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Re: Fidelity charges to close accounts!

Post by TwstdSista » Sat Dec 09, 2017 8:20 am

Hmm. I'm planning to open a solo 401k next month and roll my SEP into my Rollover IRA -- good to know that this fee *might* exist (given varying thoughts in this thread). I'll report back.

Church Lady
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Re: Fidelity charges to close accounts!

Post by Church Lady » Sat Dec 09, 2017 8:52 am

The fee is disclosed at the time you open your account. When I opened mine decades ago, some guy (or lady) wearing a green eye shade in a back room had to do the work of closing the account, so maybe $50 was reasonable then. When I opened the account, a lot of places had the closing fee. Many charts were available comparing fees across different brokers. At that time at least, it wasn't a secret you'd pay a closing fee.

Nowadays I imagine the closing is untouched by human hands, so $50 relative to today's actual cost to do so is probably a bit much. Nonetheless, the monetary benefit I received from the Fidelity account dwarfs the $50, so I'm not bothered by it.

If they raised the fee, I'd be livid :mad:
He that loveth silver shall not be satisfied with silver; nor he that loveth abundance with increase: this is also vanity. Ecclesiastes 1:8

MrJones
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Re: Fidelity charges to close accounts!

Post by MrJones » Mon Dec 11, 2017 4:05 am

goingup wrote:
Fri Dec 08, 2017 9:15 am
MrJones wrote:
Fri Dec 08, 2017 3:24 am
J295 wrote:
Wed Dec 06, 2017 4:54 pm
IMO, those who leave a dollar or similar to “show them” are spiteful and childish. Moreover it has no material impact.
Huh? Why is it not savvy rather than spiteful?

The material impact is objectively $50.
I'm not the poster who said that, but I don't find it savvy to keep a $1 in an account to outflank a closing fee. It's messy. The material impact of $50 is essentially immaterial compared the "burden" of dragging around another custodian's passwords, policies, marketing solicitations. If you place a premium on simplicity, $50 is worth it.
Burden and simplicity are fair points, agreed. In retrospect, the Op's characterization of it as spite or childishness is what made no sense to me. There are good reasons to leave it open that don't involve either.

donfairplay
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Re: Fidelity charges to close accounts!

Post by donfairplay » Mon Dec 11, 2017 4:24 am

As previously mentioned, Fidelity's IRA closing fee isn't that bad.

Discount brokers: Etrade, Scottrade, TD Ameritrade are all $75
Merrill Lynch is $75
US Bank charges $40 annually just to have an IRA.
Morgan Stanley charges $40 annually (with less than $25,000 assets) and as a bonus has an IRA closing fee of $95.

I could continue, but comparatively speaking, it ain't so bad.

bene1
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Re: Fidelity charges to close accounts!

Post by bene1 » Mon Dec 11, 2017 10:15 am

What happens if there's a zero balance at the time of closing?

Wife and I were making some updates to accounts this year and liquidated her HSA at HSA Bank. Later, when we went to close it, I noticed there was a $25 account closing fee on their fee schedule. Account had $0.00 in it and when we called to close the account, they said no charge.

Would other custodians send you a bill for the fee?

sfighter
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Re: Fidelity charges to close accounts!

Post by sfighter » Mon Jan 08, 2018 3:03 pm

My mom has a Rollover IRA + checking account at Fidelity

Was looking into closing her IRA and withdrawing the remaining $2800 for 2018 tax year

Looks like $50 account closing fee applies if I select an external account for transfer, but waived if I select Fidelity checking account instead

Close IRA & transfer funds to external Ally account:
From Account ROLLOVER IRA
Action Withdraw full amount and close account
Date 01/08/2018
Estimated Withdrawal Amount $2,801.12
Federal Tax Withholding 0.00%
Estimated State Tax Withholding 0.00%
Account Closing Fee $50.00
Estimated Net Amount $2,751.12
Withdrawal Type Normal
To Account ALLY BANK


Close IRA & transfer funds to Fidelity checking account:
From Account ROLLOVER IRA
Action Withdraw full amount and close account
Date 01/08/2018
Estimated Withdrawal Amount $2,801.12
Federal Tax Withholding 0.00%
Estimated State Tax Withholding 0.00%
Account Closing Fee $0.00
Estimated Net Amount $2,801.12
Withdrawal Type Normal
To Account MyCash


Went ahead and submitted the request to Fidelity checking account and pending transfer activity shows full amount so the fee is being waived

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BrandonBogle
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Re: Fidelity charges to close accounts!

Post by BrandonBogle » Mon Jan 08, 2018 4:28 pm

So today I helped my mother "close out" her IRA at Fidelity now that her last bond matured. When on the transfer screen to go from the IRA to her Fidelity Brokerage account, it explicitly said that closing the account would be subject to a closure fee (but didn't list the amount). We instead left $0.01 in the IRA. At some point, we'll call or message Fidelity to see if they want to no-fee close it out, or we'll just "abandon" the $0.01.

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FIREchief
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Re: Fidelity charges to close accounts!

Post by FIREchief » Mon Jan 08, 2018 5:24 pm

In hopes of adding some clarity and reducing some noise. Fidelity does not charge a fee when you close an IRA account by Roth converting, close a Roth by recharacterizing, close either by merging, etc. I was told that the fee applies only if a person totally leaves Fidelity (i.e. closes their last account). I'll never do that so I'll never pay the fee. 8-)
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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munemaker
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Re: Fidelity charges to close accounts!

Post by munemaker » Mon Jan 08, 2018 5:29 pm

gaiusgracchus wrote:
Wed Apr 17, 2013 6:46 pm
We are learning that Fidelity has account closing fees of $50.00. So we leave our money in their accounts (earning nothing) and they charge $50.00 for the privilege.

Vanguard does not charge for closing retirement accounts, thankfully.
A little confused here. If you leave money in the accounts so they are not closed, why are they charging you $50.00 closing fee? Wouldn't the $50 closing fee apply if you withdrew your money and closed the account? Sorry, not getting this.

Also, I know from past experience that E*Trade charges a $50 account closing fee, at least they did when I closed my accounts years ago.

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Earl Lemongrab
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Re: Fidelity charges to close accounts!

Post by Earl Lemongrab » Mon Jan 08, 2018 7:50 pm

With Etrade at least, they won't charge you if the final transfer is to a linked account. For an IRA you could do a 60-day rollover (remember you get but one per IRA type).
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

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LiveSimple
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Re: Fidelity charges to close accounts!

Post by LiveSimple » Tue Jan 09, 2018 6:21 am

Folks, really does $50 matters, when you transfer your assets worth more.
Call it a “doing business” fees and move on.

Did we not order or buy something from a store worth $50, and not use it ?

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BrandonBogle
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Re: Fidelity charges to close accounts!

Post by BrandonBogle » Tue Jan 09, 2018 10:25 am

BrandonBogle wrote:
Mon Jan 08, 2018 4:28 pm
So today I helped my mother "close out" her IRA at Fidelity now that her last bond matured. When on the transfer screen to go from the IRA to her Fidelity Brokerage account, it explicitly said that closing the account would be subject to a closure fee (but didn't list the amount). We instead left $0.01 in the IRA. At some point, we'll call or message Fidelity to see if they want to no-fee close it out, or we'll just "abandon" the $0.01.
Just an update that we looked today and choosing to "close account and transfer all funds" still said an account closure fee would be assessed. However, when going through the screens before hitting submit, the final review page listed the closure fee as $0.00. I printed that out as a PDF and we submitting the closure for the last penny.

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Leif
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Re: Fidelity charges to close accounts!

Post by Leif » Tue Jan 09, 2018 11:53 am

LiveSimple wrote:
Tue Jan 09, 2018 6:21 am
Folks, really does $50 matters, when you transfer your assets worth more.
We are Bogleheads!

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saltycaper
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Re: Fidelity charges to close accounts!

Post by saltycaper » Tue Jan 09, 2018 1:36 pm

Now that others have mentioned it, I too recall closing a taxable Fidelity brokerage account and not being assessed any fee. I did have other Fidelity accounts that I kept open.
Quod vitae sectabor iter?

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Ged
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Re: Fidelity charges to close accounts!

Post by Ged » Tue Jan 09, 2018 1:39 pm

The Wizard wrote:
Wed Dec 06, 2017 5:45 pm
This is a four year old thread.
Some details may have changed...
I recently closed out one of my wife's IRAs at Fidelity by withdrawal and transfer to a joint Fidelity Cash Management account. No charge. YMMV. We both still have other Fidelity accounts.

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Earl Lemongrab
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Re: Fidelity charges to close accounts!

Post by Earl Lemongrab » Tue Jan 09, 2018 2:26 pm

saltycaper wrote:
Tue Jan 09, 2018 1:36 pm
Now that others have mentioned it, I too recall closing a taxable Fidelity brokerage account and not being assessed any fee. I did have other Fidelity accounts that I kept open.
As I understand it, the only thing they charge for is closing an IRA. That's better than many, as they don't have any fees for partial or total asset transfers.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

iamright
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Re: Fidelity charges to close accounts!

Post by iamright » Sun Mar 11, 2018 1:09 am

If you have asubstantial IRA and a taxable account, tell your saleman or office manager that you will leave the taxable account with Fidelity if they waive the fee when you move the IRA. (This may actually be the policy - it was at eTrade, no fee if $50K remained. Then if you really want to move the taxable account you transferf a little bit at a time. When you have all cash in the account yiu just write a check leaving $1.28. I did this when I left eTrade and kept getting monthly statements with the $1.28 balance for 10 years. Etrade has no inactivity fee!!!

Bottom line is that the brokerages have flexibility in getting you to transfer into their firm so it makes sense that they have the same flexibility in trying to slow a plan to move assets out of the firm.

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CokeSlurpee711
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Re: Fidelity charges to close accounts!

Post by CokeSlurpee711 » Wed Jul 11, 2018 10:11 am

Moved all but $0.01 of a small IRA out of Fidelity. Sticking it to the man!

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Index Fan
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Re: Fidelity charges to close accounts!

Post by Index Fan » Wed Jul 11, 2018 10:13 am

Companies that charge me $ when I stop doing business with them are companies I'd be suspicious of.
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WhiteMaxima
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Re: Fidelity charges to close accounts!

Post by WhiteMaxima » Wed Jul 11, 2018 10:38 am

You can just leave $0.01 there and avoid the closing fees.

Bendee
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Re: Fidelity charges to close accounts!

Post by Bendee » Sun Aug 05, 2018 7:17 am

I just got hit with a $50 fee for rolling a Fidelity 401k ($70k or so in there) into a new Fidelity rollover IRA (done online). No mention of it while setting the IRA up, which is annoying. I have a feeling that a quick call will get it resolved, but any other advice on how to do it the quickest?

Grt2bOutdoors
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Re: Fidelity charges to close accounts!

Post by Grt2bOutdoors » Sun Aug 05, 2018 7:25 am

Bendee wrote:
Sun Aug 05, 2018 7:17 am
I just got hit with a $50 fee for rolling a Fidelity 401k ($70k or so in there) into a new Fidelity rollover IRA (done online). No mention of it while setting the IRA up, which is annoying. I have a feeling that a quick call will get it resolved, but any other advice on how to do it the quickest?
Maybe they didn’t get the notice-no fees! At least I think that is what they are advertising.
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MikeG62
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Re: Fidelity charges to close accounts!

Post by MikeG62 » Sun Aug 05, 2018 7:34 am

Bendee wrote:
Sun Aug 05, 2018 7:17 am
I just got hit with a $50 fee for rolling a Fidelity 401k ($70k or so in there) into a new Fidelity rollover IRA (done online). No mention of it while setting the IRA up, which is annoying. I have a feeling that a quick call will get it resolved, but any other advice on how to do it the quickest?
A few months ago I rolled over a sizable 401K (at Fidelity) into a Fidelity Rollover IRA. Not only did they not charge me a fee, but I got them to offer me a $2,500 bonus to keep the funds at Fidelity (once I told them I was considering other brokers at which to open the Rollover IRA - based upon bonuses being offered by those brokers for the transferred funds).

Something sounds very wrong to me. I’d call Fidelity and suspect they will quickly reverse the charge.
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Spirit Rider
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Re: Fidelity charges to close accounts!

Post by Spirit Rider » Sun Aug 05, 2018 7:42 am

Grt2bOutdoors wrote:
Sun Aug 05, 2018 7:25 am
Bendee wrote:
Sun Aug 05, 2018 7:17 am
I just got hit with a $50 fee for rolling a Fidelity 401k ($70k or so in there) into a new Fidelity rollover IRA (done online). No mention of it while setting the IRA up, which is annoying. I have a feeling that a quick call will get it resolved, but any other advice on how to do it the quickest?
Maybe they didn’t get the notice-no fees! At least I think that is what they are advertising.
I'm pretty sure would have been a plan fee, not a Fidelity fee on the IRA receiving side. I have rolled over several 401k plans over decades to Fidelity IRAs and have never been subjected to a "rollin" fee.

I keep repeating this, but nobody seems to get it. Even if Fidelity, Vanguard, etc... are the custodian and/or administrator of your 401k plan. Your employer controls the fund selection, expense ratios, employee administrative fees and the rest of fee schedule.

UpperNwGuy
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Re: Fidelity charges to close accounts!

Post by UpperNwGuy » Sun Aug 05, 2018 7:51 am

Spirit Rider wrote:
Sun Aug 05, 2018 7:42 am
Grt2bOutdoors wrote:
Sun Aug 05, 2018 7:25 am
Bendee wrote:
Sun Aug 05, 2018 7:17 am
I just got hit with a $50 fee for rolling a Fidelity 401k ($70k or so in there) into a new Fidelity rollover IRA (done online). No mention of it while setting the IRA up, which is annoying. I have a feeling that a quick call will get it resolved, but any other advice on how to do it the quickest?
Maybe they didn’t get the notice-no fees! At least I think that is what they are advertising.
I'm pretty sure would have been a plan fee, not a Fidelity fee on the IRA receiving side. I have rolled over several 401k plans over decades to Fidelity IRAs and have never been subjected to a "rollin" fee.

I keep repeating this, but nobody seems to get it. Even if Fidelity, Vanguard, etc... are the custodian and/or administrator of your 401k plan. Your employer controls the fund selection, expense ratios, employee administrative fees and the rest of fee schedule.
So instead of making a quick call to Fidelity, call your employer's plan administrator.

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cheese_breath
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Re: Fidelity charges to close accounts!

Post by cheese_breath » Sun Aug 05, 2018 9:14 am

I've avoided Fidelity ever since they screwed me over rolling my GM 401K into my TIAA IRA two decades ago. I have a loooong memory.
The surest way to know the future is when it becomes the past.

UpperNwGuy
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Re: Fidelity charges to close accounts!

Post by UpperNwGuy » Sun Aug 05, 2018 9:25 am

cheese_breath wrote:
Sun Aug 05, 2018 9:14 am
I've avoided Fidelity ever since they screwed me over rolling my GM 401K into my TIAA IRA two decades ago. I have a loooong memory.
How is this actionable? Are you recommending that the rest of us avoid Fidelity because you had a bad experience two decades ago?

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cheese_breath
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Re: Fidelity charges to close accounts!

Post by cheese_breath » Sun Aug 05, 2018 9:28 am

UpperNwGuy wrote:
Sun Aug 05, 2018 9:25 am
cheese_breath wrote:
Sun Aug 05, 2018 9:14 am
I've avoided Fidelity ever since they screwed me over rolling my GM 401K into my TIAA IRA two decades ago. I have a loooong memory.
How is this actionable? Are you recommending that the rest of us avoid Fidelity because you had a bad experience two decades ago?
Well, you just took the action of commenting on it.
The surest way to know the future is when it becomes the past.

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Earl Lemongrab
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Re: Fidelity charges to close accounts!

Post by Earl Lemongrab » Sun Aug 05, 2018 10:23 am

Bendee wrote:
Sun Aug 05, 2018 7:17 am
I just got hit with a $50 fee for rolling a Fidelity 401k ($70k or so in there) into a new Fidelity rollover IRA (done online). No mention of it while setting the IRA up, which is annoying. I have a feeling that a quick call will get it resolved, but any other advice on how to do it the quickest?
I agree with the above. 401(k) fees are usually established by the plan. Fidelity just adminsters it.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

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Leif
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Re: Fidelity charges to close accounts!

Post by Leif » Sun Aug 05, 2018 1:05 pm

Bendee wrote:
Sun Aug 05, 2018 7:17 am
I just got hit with a $50 fee for rolling a Fidelity 401k ($70k or so in there) into a new Fidelity rollover IRA (done online). No mention of it while setting the IRA up, which is annoying. I have a feeling that a quick call will get it resolved, but any other advice on how to do it the quickest?
I would give them a call.

I recently rolled over a Fidelity Keogh (like a 401k) retirement account to my Fidelity IRA. Before doing so I called to verify there is no fee. They told me rolling over inside of Fidelity will not generate a fee. After doing that I checked. They did not charge me a fee.

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TimeRunner
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Re: Fidelity charges to close accounts!

Post by TimeRunner » Sun Aug 05, 2018 9:05 pm

cheese_breath wrote:
Sun Aug 05, 2018 9:28 am
UpperNwGuy wrote:
Sun Aug 05, 2018 9:25 am
cheese_breath wrote:
Sun Aug 05, 2018 9:14 am
I've avoided Fidelity ever since they screwed me over rolling my GM 401K into my TIAA IRA two decades ago. I have a loooong memory.
How is this actionable? Are you recommending that the rest of us avoid Fidelity because you had a bad experience two decades ago?
Well, you just took the action of commenting on it.
Right, but your problem twenty years ago was with (the old) GM as the Plan Administrator, per upthread, not Fidelity. Of course GM is no longer GM either. So it goes....
“Some depart to remain.”

WanderingInvestor
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Re: Fidelity charges to close accounts!

Post by WanderingInvestor » Sun Aug 05, 2018 9:35 pm

No, not any more they don't. As of August 1, 2018, Fidelity no longer has any closeout fee for any kind of IRA. Part of their big "Zero" initiative.

They never have, at least not in recent years, had a transfer-out fee for doing an in-kind ACATS out of security positions. But they did have a $50 IRA close fee, if your out-transfer was in fact for everything.

I kept an unused Fidelity IRA alive with only 1 penny in it for about 5 years from 2011-2016 to avoid the fee. Started using it again in 2016 through now.

If you have a Workplace Savings Account managed by Fidelity at their Netbenefits site, like a 401(k), 401(a), 403(b), or a 457 plan, there may well be some fees, but that's likely based on what your employer set up with Fidelity and the plan trustee board when they picked Fidelity to manage it. Those are not Fidelity Brokerage Services accounts ("Fidelity retail accounts"), even if they have the BrokerageLink feature. Similar if you have an outside RIA who uses Fidelity's Institutional Wealth Services platform for your account - fees are not set entirely by Fidelity.

But FBS ("retail") IRAs no longer have any account closing fees. Nor any cost on literally getting the funds out as cash either. ACH transfers already were free. Also no longer any domestic wire sending fees. It's not clear on foreign wires, because they only mention a fee still existing on foreign currency wires, but a lot of foreign wires are sent as USD, so I suspect that even if you're enjoying some "Escape to Sovereign International Haven Living Overseas" and close out your Fido IRA with a USD wire to "Republic of Beach Haven National Bank", it may be no charge to send. (Charge if Fido has to send as BeachHaven ShellPesos.)

So pretty much no fee to get your money and/or shares out of Fidelity Brokerage in any normal situation. Though with now-lowest index fund expense ratios (not just the two "Zero" funds), less reason than ever to leave it.

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