Transfer in kind between accounts at Fidelity?

[PointBreeze]

I'd like to transfer DP's RMDs in kind from her Fidelity IRA to her Fidelity brokerage account, but it appears to me that the only way to do this is to call up Fidelity and ask them to do it for us.


Has anyone managed to do this online?

 

[Winemaker]

Yes, it took me a minute to figure out but yes, you can. Under customer service tab, go to retirement section, then to transfer money. the account inventory will show up, I did it this week.

 

[PointBreeze]

Yes, it took me a minute to figure out but yes, you can. Under customer service tab, go to retirement section, then to transfer money. the account inventory will show up, I did it this week.

Thank you, I will try it this week!

 

[jollystomper]

An issue I ran into that might be a factor. I had a very old tIRA account, opened in the late 1990s. I could not do any transfers from it to my other accounts without calling. This account was (according to the phone reps) in some type of "old" format that did not permit online transfers - likely due to some software technology issue. I had to open a new IRA account and then call and have them transfer my holdings from the old IRA account into it. Once that was done I was able to perform online transfers.

 

[PointBreeze]

Thanks, JollyStomper, my tIRA at Fidelity is only a few years old - it is a rollover from my 403(b).

 

[PointBreeze]

Hi Winemaker, I went to Customer Service, then Retirement. There is a transfer link towards the top, but that just takes me to the regular transfer page, which only permits transfers from the Core position. If on the Retirement page I click on "retirement withdrawals" and then on the "Withdraw from your IRA" button, it once again goes to the regular transfer page.

Were you able to transfer from your IRA to a brokerage account in kind? By that I mean move x number of shares of stock or a fund from your IRA directly into your brokerage account without having to sell the stock or fund in your IRA first?

This is what I would like to do. We don't need to spend most of her RMD, so I would like to just keep it invested, albeit in a different account.

I know I could sell it in the IRA, transfer the cash, and then buy it in the Brokerage account, but was trying to avoid that.

 

[Done]

An in-kind IRA distribution has to done by phone or form per Fidelity's reply in a Reddit thread. For some reason, a Roth conversion can be done in-kind online (on a computer, not in the app).

 

[Winemaker]

Hi Winemaker, I went to Customer Service, then Retirement. There is a transfer link towards the top, but that just takes me to the regular transfer page, which only permits transfers from the Core position. If on the Retirement page I click on "retirement withdrawals" and then on the "Withdraw from your IRA" button, it once again goes to the regular transfer page.

Were you able to transfer from your IRA to a brokerage account in kind? By that I mean move x number of shares of stock or a fund from your IRA directly into your brokerage account without having to sell the stock or fund in your IRA first?

This is what I would like to do. We don't need to spend most of her RMD, so I would like to just keep it invested, albeit in a different account.

I know I could sell it in the IRA, transfer the cash, and then buy it in the Brokerage account, but was trying to avoid that.

When I click on "Withdraw from your IRA", it takes me to "Your guide to Required Minimum Distributions". and lists all my tIRAs, inherited IRAs, and Roth IRA accounts. While I am only making a RMD out of my Inherited tIRA at this point, I can transfer in kind. Last week I took a distribution from my tIRA, NOT required, but I was still able to transfer assets in kind to my brokerage account. My inherited IRA requires a RMD, and I was able to transfer in kind as well.

 

[CincyDave]

An in-kind IRA distribution has to done by phone or form per Fidelity's reply in a Reddit thread. For some reason, a Roth conversion can be done in-kind online (on a computer, not in the app).

This looks correct. I just did an in kind TIRA to Roth, but when I started a TIRA to brokerage transaction, it didn't look like it could be done. Not sure why this would be.

 

[CincyDave]

When I click on "Withdraw from your IRA", it takes me to "Your guide to Required Minimum Distributions". and lists all my tIRAs, inherited IRAs, and Roth IRA accounts. While I am only making a RMD out of my Inherited tIRA at this point, I can transfer in kind. Last week I took a distribution from my tIRA, NOT required, but I was still able to transfer assets in kind to my brokerage account. My inherited IRA requires a RMD, and I was able to transfer in kind as well.

When I do what you describe, I can only transfer what I have in cash. I get the following message. Maybe there are different rules for different account types?

If you'd like to transfer more money than your current cash available, you may be able to sell investments to free up the additional cash. We can help you do that in the next few steps.

 

[agh1]

Isn't this because you need to purchase the asset in the brokerage account to establish the cost basis on the date of the transfer for future tax purposes? This is not needed when transferring from tIRA to Roth or from one tIRA account to another.

 

[PointBreeze]

Isn't this because you need to purchase the asset in the brokerage account to establish the cost basis on the date of the transfer for future tax purposes? This is not needed when transferring from tIRA to Roth or from one tIRA account to another.

I’m thinking you might just be correct, agh1. That makes a lot of sense.

So, sell the investment in the tIRA and then buy it again immediately in the brokerage. Will there be any trouble with wash sale rules? Or do I need to wait 31 days to re-purchase?

 

[audreyh1]

Isn't this because you need to purchase the asset in the brokerage account to establish the cost basis on the date of the transfer for future tax purposes? This is not needed when transferring from tIRA to Roth or from one tIRA account to another.

No, not at all. When they transfer in kind from a tax deferred account to a taxable one, they set the basis on the day transferred using normal IRS rules. Or if it’s a mutual fund it would simply be the closing value of the fund that day.

It sounds to me like they simply don’t have the mechanisms in place at the moment to do every case online.

 

[audreyh1]

I’m thinking you might just be correct, agh1. That makes a lot of sense.

So, sell the investment in the tIRA and then buy it again immediately in the brokerage. Will there be any trouble with wash sale rules? Or do I need to wait 31 days to re-purchase?

Just call in, you don’t need to do the extra work. Transfer in kind.

And for future reference, wash sale rules only apply when you book a taxable loss which you can only do in taxable accounts. This doesn’t happen taking a distribution from a tax-deferred account.

If you had sold some of the same fund at a loss in your taxable accounts, and then bought the same within 31 days in any account, then you violate the wash sale rule. So that’s the case to look out for.

 

[PointBreeze]

No, not at all. When they transfer in kind from a tax deferred account to a taxable one, they set the basis on the day transferred using normal IRS rules. Or if it’s a mutual fund it would simply be the closing value of the fund that day.

It sounds to me like they simply don’t have the mechanisms in place at the moment to do every case online.

You’ve been very helpful, Audreyh1 - thank you!

 

[Winemaker]

When I do what you describe, I can only transfer what I have in cash. I get the following message. Maybe there are different rules for different account types?

If you'd like to transfer more money than your current cash available, you may be able to sell investments to free up the additional cash. We can help you do that in the next few steps.

When the window comes up for me, it lists all the assets, cash and securities. I click on each one and gives me box for the number of shares. After the transfer, it then gives me the basis one or two days later, using the day of transfer price.

 

[CincyDave]

When the window comes up for me, it lists all the assets, cash and securities. I click on each one and gives me box for the number of shares. After the transfer, it then gives me the basis one or two days later, using the day of transfer price.

Wow, that's weird. That's how mine worked on the TIRA to Roth transfer, but not on the TIRA to brokerage account transfer.

 

[PointBreeze]

Wow, that's weird. That's how mine worked on the TIRA to Roth transfer, but not on the TIRA to brokerage account transfer.

Ditto.