Help me transfer Vanguard to Fidelity

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Topic Author
passive101
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Help me transfer Vanguard to Fidelity

Post by passive101 »

In Vanguard I have a traditional IRA from the company match that is pretax. I also have a Roth IRA which is a combination of my Roth 401k rollovers and my own personal contributions. I want to move to Fidelity because Vanguard keeps increasing fees on people and my HSA is already at Fidelity.

My options to move accounts over with Fidelity are Traditional IRA or Rollover IRA. The Roth IRA is the only Roth so I'm sure that is for my Roth IRA that has both my contributions and my old 401ks. I'm not sure what the difference is between a Traditional IRA and a Rollover IRA. Could a Rollover IRA also be a Roth?
jebmke
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Re: Help me transfer Vanguard to Fidelity

Post by jebmke »

I think you can do all this(at least start) online at Fidelity. If their instructions aren’t clear you can probably go to a nearby office and have them complete all the paperwork.

What fees are you being charged?
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Topic Author
passive101
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Re: Help me transfer Vanguard to Fidelity

Post by passive101 »

jebmke wrote: Tue May 14, 2024 3:30 pm I think you can do all this(at least start) online at Fidelity. If their instructions aren’t clear you can probably go to a nearby office and have them complete all the paperwork.

What fees are you being charged?
I don't think I'm part of the group being charged any fees yet. The only one I know that starts is Vanguard will start charging $100 to transfer from Vanguard per account starting next month I think it is.
GaryA505
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Re: Help me transfer Vanguard to Fidelity

Post by GaryA505 »

passive101 wrote: Tue May 14, 2024 3:20 pm In Vanguard I have a traditional IRA from the company match that is pretax. I also have a Roth IRA which is a combination of my Roth 401k rollovers and my own personal contributions. I want to move to Fidelity because Vanguard keeps increasing fees on people and my HSA is already at Fidelity.

My options to move accounts over with Fidelity are Traditional IRA or Rollover IRA. The Roth IRA is the only Roth so I'm sure that is for my Roth IRA that has both my contributions and my old 401ks. I'm not sure what the difference is between a Traditional IRA and a Rollover IRA. Could a Rollover IRA also be a Roth?
A Rollover IRA would not be a Roth IRA. Oddly enough, to the IRS, a "Rollover IRA" is not just something you "rolled over". A Rollover IRA is really just a special case of a traditional IRA, where the only assets in the account were from workplace plans.

I had the same question a while back. Apparently there is really no longer much difference between a Traditional IRA and a Rollover IRA, unless you've commingled workplace assets with your own annual contributions. I don't think this matters for a Roth since there's no income taxes on a Roth. My Fidelity IRA (that I "rolled over" from a Fidelity SEP IRA) is called a "Rollover IRA" in my accounts.

Apparently, in the past, some 401K plans would only accept Rollover IRA assets, and not Traditional IRA which could contain comingled assets. Apparently this is no longer true, but I'm not sure on that.

Not confused yet? You should be.

From a Fidelity rep on Reddit (bold added by me):

"Essentially, Traditional and Rollover IRAs are both treated as Traditional IRAs for tax purposes. The main difference between the two is that a Rollover IRA is typically used to keep assets contributed to an employer-sponsored retirement plan like a 401(k) separate from personal contributions to an IRA. You were on the right track when you asked whether this was to remember what's been rolled over and what's been contributed because if you plan to roll an account back into an employer-sponsored retirement plan, the new plan may not accept a rollover of commingled assets.

Now, let's go back for a second to ensure we understand commingling assets. Commingling refers to combining different types of retirement plan assets into one account, such as rolling over workplace plan assets and making annual contributions into that same IRA. So, while you can continue to make contributions into a Rollover IRA, as I mentioned above, doing so may prevent you from rolling the account back into a future employer-sponsored plan.
"
Last edited by GaryA505 on Tue May 14, 2024 3:59 pm, edited 1 time in total.
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Watty
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Re: Help me transfer Vanguard to Fidelity

Post by Watty »

Be sure to ask Fidelity for a transfer bonus. They will apparently give you one if you ask but I forgot to ask when I transferred from Vanguard to Fidelity almost two years ago. :oops:

As I recalled I just called Fidelity and they walked me through the transfer process so it was real easy to do.
Topic Author
passive101
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Re: Help me transfer Vanguard to Fidelity

Post by passive101 »

Watty wrote: Tue May 14, 2024 3:59 pm Be sure to ask Fidelity for a transfer bonus. They will apparently give you one if you ask but I forgot to ask when I transferred from Vanguard to Fidelity almost two years ago. :oops:

As I recalled I just called Fidelity and they walked me through the transfer process so it was real easy to do.
What is a transfer bonus that they offer?
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Cocoa Beach Bum
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Re: Help me transfer Vanguard to Fidelity

Post by Cocoa Beach Bum »

Maybe this page can help with your transfer to Fidelity:
https://www.fidelity.com/customer-servi ... fer-assets
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rkhusky
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Re: Help me transfer Vanguard to Fidelity

Post by rkhusky »

If you transfer enough to qualify for a bonus, you would easily qualify for an account closure fee reimbursement too.
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passive101
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Re: Help me transfer Vanguard to Fidelity

Post by passive101 »

All of my IRAs are stock index ETFs. Will I have to reinvest it when the money arrives at Fidelity?
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Cocoa Beach Bum
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Re: Help me transfer Vanguard to Fidelity

Post by Cocoa Beach Bum »

passive101 wrote: Tue May 14, 2024 7:31 pm All of my IRAs are stock index ETFs. Will I have to reinvest it when the money arrives at Fidelity?
If done correctly, your IRA ETF holdings will transfer intact to Fidelity.
https://www.fidelity.com/customer-servi ... fer-assets
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sycamore
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Re: Help me transfer Vanguard to Fidelity

Post by sycamore »

Cocoa Beach Bum wrote: Tue May 14, 2024 7:39 pm
passive101 wrote: Tue May 14, 2024 7:31 pm All of my IRAs are stock index ETFs. Will I have to reinvest it when the money arrives at Fidelity?
If done correctly, your IRA ETF holdings will transfer intact to Fidelity.
https://www.fidelity.com/customer-servi ... fer-assets
Good answer. passive101 please read that for your own good.

Also, you used the term "money" in contrast to "securities" or "holdings." This makes me think you don't understand in-kind transfers because with those kinds of transfers your shares transfer, not any money per se, and as such there's no need to reinvest.

The exception to that general rule involves money market funds, settlement fund cash, dividend distributions, and cash proceeds from liquidation of any fractional share amounts. Like if you have 999.55 shares of VTI, 999 shares will be transferred, 0.55 shares will be liquidated by the outgoing brokerage, and the cash proceeds transferred over later to the incoming brokerage.
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mhc
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Re: Help me transfer Vanguard to Fidelity

Post by mhc »

passive101 wrote: Tue May 14, 2024 4:06 pm
Watty wrote: Tue May 14, 2024 3:59 pm Be sure to ask Fidelity for a transfer bonus. They will apparently give you one if you ask but I forgot to ask when I transferred from Vanguard to Fidelity almost two years ago. :oops:

As I recalled I just called Fidelity and they walked me through the transfer process so it was real easy to do.
What is a transfer bonus that they offer?
$1k bonus per million transferred per SSN. No pro rata. You have to hit the next million to get the next $1k.

I met with a local Fidelity rep yesterday. They had been calling me, so I went into their office. It was worth the hour. We had a nice conversation. The rep showed me how to transfer accounts. He said I had to put in a transfer request for each account. There was no selling of their products. He just told me different things that might be useful.

The bonus is $1000 per million. I got the rep to round up our assets to the next million to get an extra $1k. $1k for an hour visit is a pretty good ROI. My understanding is that a rep has to put the bonus amount into the system before the xfer to get the bonus.

If you have a local office, it may be worth it to schedule an appointment.
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placeholder
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Re: Help me transfer Vanguard to Fidelity

Post by placeholder »

mhc wrote: Wed May 15, 2024 9:30 am
passive101 wrote: Tue May 14, 2024 4:06 pm What is a transfer bonus that they offer?
$1k bonus per million transferred per SSN. No pro rata. You have to hit the next million to get the next $1k.
That's not very good and they offered me 1500 and I'd at least try to get them to match this etrade one for 2500:

https://us.etrade.com/what-we-offer/how-it-works/promo
MadHungarian
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Re: Help me transfer Vanguard to Fidelity

Post by MadHungarian »

I just now got done (mostly) transferring a smallish Roth IRA from Vanguard to Fidelity. Seems to have gone okay, and was pretty easy. Both my funds (Treasury MM and Balanced Index) seem to have come over okay.
There's still a partial month of MM interest remaining at Vanguard, which i'm assuming will transfer over soon too.
MadHungarian
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Re: Help me transfer Vanguard to Fidelity

Post by MadHungarian »

It looks like the remaining 'partial month of MM interest' left in my Vanguard Roth account automatically transferred over to Fidelity today, after the expected 2-3 day delay. And also after a 2-3 day delay, i can now set the dividend-reinvestment preference for the transferred Vanguard funds. So everything looks in order so far.
My only complaint is that Vanguard never notified me that someone was transferring money out of my account! Normally they're pretty good at notifying me of events. Oh well.
Radio_Wave
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Re: Help me transfer Vanguard to Fidelity

Post by Radio_Wave »

sycamore wrote: Tue May 14, 2024 8:35 pm
Cocoa Beach Bum wrote: Tue May 14, 2024 7:39 pm
passive101 wrote: Tue May 14, 2024 7:31 pm All of my IRAs are stock index ETFs. Will I have to reinvest it when the money arrives at Fidelity?
If done correctly, your IRA ETF holdings will transfer intact to Fidelity.
https://www.fidelity.com/customer-servi ... fer-assets
Good answer. passive101 please read that for your own good.

Also, you used the term "money" in contrast to "securities" or "holdings." This makes me think you don't understand in-kind transfers because with those kinds of transfers your shares transfer, not any money per se, and as such there's no need to reinvest.

The exception to that general rule involves money market funds, settlement fund cash, dividend distributions, and cash proceeds from liquidation of any fractional share amounts. Like if you have 999.55 shares of VTI, 999 shares will be transferred, 0.55 shares will be liquidated by the outgoing brokerage, and the cash proceeds transferred over later to the incoming brokerage.
Correct. There's no need to liquidate your holdings. Instead, what you'll be doing is analogous to transferring personal property from one storage unit to another.

I'll add that if you give Fidelity a full accounting of what stocks, mutual funds and ETFs you want transferred -- equity names or tickers, number of shares, account numbers, etc. -- they'll set up appropriate accounts and do the transfers for you. This might take about 5 business days to complete (happened in my case). As sycamore said, transferring cash from money market accounts and various sale proceeds might need some additional effort on your part and may add time to the whole process. In any case, this should all go painlessly.
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