50.00 Fee from Fidelity for transfer

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
cricket49
Posts: 222
Joined: Sun Apr 05, 2015 4:14 pm

50.00 Fee from Fidelity for transfer

Post by cricket49 » Wed Apr 08, 2015 7:36 am

I transferred a ROTH IRA from Fidelity to Vanguard last night and this morning I noticed
a 50.00 fee from Fidelity. ACH is the standard way to transfer from financial institutions
today and they don't cost that much.

I still have quite a bit of money in Fidelity and have done business with them for over
20 years. I was surprised to be charged this much money. Is it worth a phone call
to Fidelity to get it reduced or waived or is this normal?

If I had moved this money to my local bank I am sure they would not have charged me.

Is this their way of getting you back if you move your money to another financial
institution?
Expect the best. Prepare for the worst.

beardsworth
Posts: 2135
Joined: Fri Jun 15, 2007 4:02 pm

Re: 50.00 Fee from Fidelity for transfer

Post by beardsworth » Wed Apr 08, 2015 7:44 am

Yes, of course, ask this question of Fidelity and update with their own explanation for the fee and their willingness (or not) to reduce or rescind it.

User avatar
BL
Posts: 9267
Joined: Sun Mar 01, 2009 2:28 pm

Re: 50.00 Fee from Fidelity for transfer

Post by BL » Wed Apr 08, 2015 7:46 am

I have heard of others charging 75 or 95.

Topic Author
cricket49
Posts: 222
Joined: Sun Apr 05, 2015 4:14 pm

Re: 50.00 Fee from Fidelity for transfer

Post by cricket49 » Wed Apr 08, 2015 7:47 am

I was wondering if this was a normal process when you
move money from one financial institution to another.

If this is normal, going forward, I am going to be hit with many fees and might want
to change my transfer strategy.

I will update after the Fidelity call.
Expect the best. Prepare for the worst.

pkcrafter
Posts: 13796
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: 50.00 Fee from Fidelity for transfer

Post by pkcrafter » Wed Apr 08, 2015 7:54 am

Yes, it's normal, and 50 bucks is cheap compared to places like Edward Jones. But still it's annoying that you have to pay to get your own money back. If you are a regular customer of Fidelity, you might be able to talk them into dropping the fee.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

retiredjg
Posts: 39361
Joined: Thu Jan 10, 2008 12:56 pm

Re: 50.00 Fee from Fidelity for transfer

Post by retiredjg » Wed Apr 08, 2015 7:56 am

It is normal when you close an account. Or perhaps "certain" accounts is more accurate - not sure I've heard of a charge on a taxable account. I don't know if all companies charge them, but probably most do. $50 is low. Some charge $100.

jwelton2
Posts: 10
Joined: Fri Mar 20, 2015 12:01 pm

Re: 50.00 Fee from Fidelity for transfer

Post by jwelton2 » Wed Apr 08, 2015 8:10 am

I just got hit with a $135 transfer fee from Edward Jones to move an inherited IRA to Fidelity - ouch.

Topic Author
cricket49
Posts: 222
Joined: Sun Apr 05, 2015 4:14 pm

Re: 50.00 Fee from Fidelity for transfer

Post by cricket49 » Wed Apr 08, 2015 9:13 am

Just spoke to a rep at Fidelity and he said it was an automatic because I close the ROTH account.
He said because I was a premium customer they would go back and credit the 50.00. He was very
nice and apologetic.

So if I had moved a large portion of the money and left a balance there would be no automatic
charge. Then I could transfer the small balance to one of my other accounts with Fidelity.
Expect the best. Prepare for the worst.

User avatar
Ketawa
Posts: 2223
Joined: Mon Aug 22, 2011 1:11 am
Location: DC

Re: 50.00 Fee from Fidelity for transfer

Post by Ketawa » Wed Apr 08, 2015 9:30 am

How would you transfer a small remaining balance to another Fidelity account? Do you have another Roth IRA at Fidelity? Otherwise, the money is stuck in the Roth IRA until you take a distribution.

Vanguard is the only fund company I know of that does not charge an account closure fee. However, I recently transferred an entire IRA out of TD Ameritrade and they didn't charge me a fee, which is contrary to their stated fees.

https://www.fidelity.com/why-fidelity/pricing-fees

$50 is the standard fee for closing an IRA at Fidelity. However, it's sneakily hidden under a "Show More".
Last edited by Ketawa on Wed Apr 08, 2015 9:39 am, edited 1 time in total.

User avatar
Sbashore
Posts: 950
Joined: Wed Feb 20, 2008 10:38 pm
Location: Goodyear, AZ

Re: 50.00 Fee from Fidelity for transfer

Post by Sbashore » Wed Apr 08, 2015 9:36 am

pkcrafter wrote:Yes, it's normal, and 50 bucks is cheap compared to places like Edward Jones. But still it's annoying that you have to pay to get your own money back. If you are a regular customer of Fidelity, you might be able to talk them into dropping the fee.

Paul
Yes quite normal. I paid $95 per account (3 accounts) to move from WellsTrade to Vanguard a little over a year ago.
Steve | Semper Fi

Topic Author
cricket49
Posts: 222
Joined: Sun Apr 05, 2015 4:14 pm

Re: 50.00 Fee from Fidelity for transfer

Post by cricket49 » Wed Apr 08, 2015 9:43 am

Ketawa wrote:How would you transfer a small remaining balance to another Fidelity account? Do you have another Roth IRA at Fidelity? Otherwise, the money is stuck in the Roth IRA until you take a distribution.

https://www.fidelity.com/why-fidelity/pricing-fees

$50 is the standard fee for closing an IRA at Fidelity. However, it's sneakily hidden under a "Show More".
I would leave about 100.00 then transfer it to a taxable account and then claim it as income. I have a small bank account with Fidelity to use with my
brokerage account.
Last edited by cricket49 on Wed Apr 08, 2015 11:32 am, edited 1 time in total.
Expect the best. Prepare for the worst.

snowman
Posts: 1015
Joined: Thu Jan 31, 2013 12:59 pm

Re: 50.00 Fee from Fidelity for transfer

Post by snowman » Wed Apr 08, 2015 9:50 am

Ketawa wrote:However, I recently transferred an entire IRA out of TD Ameritrade and they didn't charge me a fee, which is contrary to their stated fees.
TDA does not charge closing account fees for APEX customers. Assuming you were APEX customer, they just followed their rules by not charging you any fees.

User avatar
jhfenton
Posts: 4510
Joined: Sat Feb 07, 2015 11:17 am
Location: Ohio

Re: 50.00 Fee from Fidelity for transfer

Post by jhfenton » Wed Apr 08, 2015 9:53 am

Ketawa wrote: Vanguard is the only fund company I know of that does not charge an account closure fee. However, I recently transferred an entire IRA out of TD Ameritrade and they didn't charge me a fee, which is contrary to their stated fees.
TD Ameritrade shows a full-account outbound transfer fee of $75 for normal accounts, but "FREE" for Apex accounts (over $100K). Almost everything is free for Apex customers. I will eventually take advantage of that "free-dom" to move our 5 accounts over to Vanguard, but not for a while.

User avatar
Ketawa
Posts: 2223
Joined: Mon Aug 22, 2011 1:11 am
Location: DC

Re: 50.00 Fee from Fidelity for transfer

Post by Ketawa » Wed Apr 08, 2015 12:47 pm

It's possible that it was because I was Apex. I think I attained Apex status when I first rolled over to TDA since I had a bunch of free trades and rebalanced frequently. I was under $100k. If you don't lose Apex status, maybe I still had it, even though I typically only had two trades per month for two years from rebalancing.

retiredjg
Posts: 39361
Joined: Thu Jan 10, 2008 12:56 pm

Re: 50.00 Fee from Fidelity for transfer

Post by retiredjg » Wed Apr 08, 2015 1:05 pm

Ketawa wrote:$50 is the standard fee for closing an IRA at Fidelity. However, it's sneakily hidden under a "Show More".
And even then it is not very noticeable. I looked at that page 3 times before finding it. And the search box was no help either.

You can't say the info is not available, but it sure is not easily stumbled upon.

User avatar
Makaveli
Posts: 555
Joined: Mon May 19, 2014 11:18 pm

Re: 50.00 Fee from Fidelity for transfer

Post by Makaveli » Wed Apr 08, 2015 7:17 pm

cricket49 wrote:Just spoke to a rep at Fidelity and he said it was an automatic because I close the ROTH account.
He said because I was a premium customer they would go back and credit the 50.00. He was very
nice and apologetic.

So if I had moved a large portion of the money and left a balance there would be no automatic
charge. Then I could transfer the small balance to one of my other accounts with Fidelity.
I must not be a premium customer. I'm currently in the process of transferring my Fido Roth to Vanguard and couldn't talk my way out of the $50 fee.

User avatar
Leif
Posts: 2762
Joined: Wed Sep 19, 2007 4:15 pm

Re: 50.00 Fee from Fidelity for transfer

Post by Leif » Wed Apr 08, 2015 7:23 pm

I've read other posts about Fidelity's $50 parting shot. I've never heard if you can transfer/withdraw down to $1 to avoid the fee. They would probably hit you with a low balance fee in that case :oops: , but if that is the last account then how do they collect? :mrgreen:

User avatar
BolderBoy
Posts: 4645
Joined: Wed Apr 07, 2010 12:16 pm
Location: Colorado

Re: 50.00 Fee from Fidelity for transfer

Post by BolderBoy » Wed Apr 08, 2015 10:46 pm

cricket49 wrote:I transferred a ROTH IRA from Fidelity to Vanguard last night and this morning I noticed
a 50.00 fee from Fidelity. ACH is the standard way to transfer from financial institutions
today and they don't cost that much.
This is little more than punishment and shows what a financial institution truly thinks of you. The more they charge, the less you interest them. Consider it the final fleecing (unless you get it reversed.)

User avatar
MossySF
Posts: 2361
Joined: Thu Apr 19, 2007 9:51 pm
Contact:

Re: 50.00 Fee from Fidelity for transfer

Post by MossySF » Wed Apr 08, 2015 10:59 pm

Possible way to avoid account closing fees ... withdraw the money and do an indirect rollover?

dbltrbl
Posts: 900
Joined: Thu Mar 01, 2007 11:52 am

Re: 50.00 Fee from Fidelity for transfer

Post by dbltrbl » Thu Apr 09, 2015 4:38 am

Anotther way to avoid fees is to leave $ 1.00 in an account. No fees will be charged and two years later FIDO will close the account send you a check for a :oops: buck. Win win. Our son's account, had $0.03 so no charges were levied and later fidelity send a check for it closing the account. Oh, the wonders of automation. :sharebeer

rehr22
Posts: 28
Joined: Wed Mar 11, 2015 12:34 pm

Re: 50.00 Fee from Fidelity for transfer

Post by rehr22 » Thu Apr 09, 2015 5:33 am

dbltrbl wrote:Anotther way to avoid fees is to leave $ 1.00 in an account. No fees will be charged and two years later FIDO will close the account send you a check for a :oops: buck. Win win. Our son's account, had $0.03 so no charges were levied and later fidelity send a check for it closing the account. Oh, the wonders of automation. :sharebeer
Damn it, why didn't I think of this! So simple, too ;)

dolphinsaremammals
Posts: 2094
Joined: Tue Jul 22, 2014 4:18 pm

Re: 50.00 Fee from Fidelity for transfer

Post by dolphinsaremammals » Thu Apr 09, 2015 6:05 am

dbltrbl wrote:Anotther way to avoid fees is to leave $ 1.00 in an account. No fees will be charged and two years later FIDO will close the account send you a check for a :oops: buck. Win win. Our son's account, had $0.03 so no charges were levied and later fidelity send a check for it closing the account. Oh, the wonders of automation. :sharebeer
Just what they deserve.

Schwab whacked me with $50 per account when I transferred some to Vanguard a few years ago, so I left Schwab completely, never to return.

Topic Author
cricket49
Posts: 222
Joined: Sun Apr 05, 2015 4:14 pm

Re: 50.00 Fee from Fidelity for transfer

Post by cricket49 » Thu Apr 09, 2015 7:37 am

dbltrbl wrote:Anotther way to avoid fees is to leave $ 1.00 in an account. No fees will be charged and two years later FIDO will close the account send you a check for a :oops: buck. Win win. Our son's account, had $0.03 so no charges were levied and later fidelity send a check for it closing the account. Oh, the wonders of automation. :sharebeer
Who knew they would charge all these unnecessary fees when you leave or close the account. Currently I have 6 accounts with Fidelity - 4 retirement, 1 checking account and a brokerage account with 2 stocks in it. I was going to move and close the brokerage but the 2 stocks are doing so well I decided to leave them. My checking account has .07 in it. One of the retirement accounts has 2500.00 in it from a old SEP plan. So that will be the first one we dissolve and I will get them to remove the fee again. The other retirement accounts have a lot of money in them so I will leave them open and draw down until another account gets low.

Yes, eventually they will all have a few cents left in them. It is outrageous they can charge you 50 per account to close them out. That would be 400 for all my accounts.

This is a learning experience so I will be careful in the future about setting up accounts with financial institutions.

Now I have to deal with moving my money from Scottrade to Vanguard. If necessary, I will leave a small balance to avoid a fee since I am moving all
my money to Vanguard.
Expect the best. Prepare for the worst.

Topic Author
cricket49
Posts: 222
Joined: Sun Apr 05, 2015 4:14 pm

Re: 50.00 Fee from Fidelity for transfer

Post by cricket49 » Thu Apr 09, 2015 8:42 am

Well I found this article worth reading.

http://www.brokerage-review.com/findbro ... -fees.aspx

It looks like none of the financial institutions charge a fee to close a brokerage account.
Expect the best. Prepare for the worst.

User avatar
goingup
Posts: 3753
Joined: Tue Jan 26, 2010 1:02 pm

Re: 50.00 Fee from Fidelity for transfer

Post by goingup » Thu Apr 09, 2015 11:15 am

Account closure fees are something I haven't had in a long time. In the last 10 years I've consolidated accounts from Janus, TRowe, TIAA Cref and paid nothing. These weren't brokerage accounts though. If they had charged a closure fee I would have paid it. I wouldn't keep an account open just to avoid a fee. Too much energy involved in keeping up with that. Consolidation and simplification mean a lot to me.

User avatar
Makaveli
Posts: 555
Joined: Mon May 19, 2014 11:18 pm

Re: 50.00 Fee from Fidelity for transfer

Post by Makaveli » Fri Apr 10, 2015 6:46 am

rehr22 wrote:
dbltrbl wrote:Anotther way to avoid fees is to leave $ 1.00 in an account. No fees will be charged and two years later FIDO will close the account send you a check for a :oops: buck. Win win. Our son's account, had $0.03 so no charges were levied and later fidelity send a check for it closing the account. Oh, the wonders of automation. :sharebeer
Damn it, why didn't I think of this! So simple, too ;)
When I recently called they told me that it'd take a $50 balance in account to remain open. So it'd be a wash either way - $50 left behind or $50 fee for "maintenance aka 2 years of record keeping" ...of my 2 trades.

User avatar
SpringMan
Posts: 5414
Joined: Wed Mar 21, 2007 11:32 am
Location: Michigan

Re: 50.00 Fee from Fidelity for transfer

Post by SpringMan » Fri Apr 10, 2015 6:55 am

I was hit with the 50 dollar closing fee per account when I transferred Roths to Vanguard from Fidelity. It was money well spent IMO. Years ago Fidelity reimbursed my account closing fee at E*Trade when I moved it to Fidelity, $60 at the time. In the big scheme of things the closing fee is meaningless.
Best Wishes, SpringMan

Post Reply