Update....
I called Fidelity and had no luck with this switching IRA over.
That's because you have investments at your current advisor that Fidelity can't support, probably they are proprietary to your advisor.
I just want to move this IRA away from the advisor and park it in a CD or annuity.
How can I do this without withdrawal penalties and without the advisor involved anymore
Need a 3 yr+ plan.
Any help is appreciated.
You have two choices when moving an IRA between sponsors - 1) Direct transfer, or 2) Liquidation and setting up a new account with a new sponsor (this is a manual version of what happens in a direct transfer). Just be clear about your goals.
You cannot avoid paying fees, and you may have to pay withdrawal penalties and/or an account termination fee.
#1 You can still do this but any fund that Fidelity can't support your advisor needs to be told to sell it. You may pay a commission for the sale, and/or there may be an early withdrawal penalty on something you own in the account. Once you have sold any funds that Fidelity can't accept,
do not put the money into a CD or an annuity - leave it liquid in your IRA, and contact Fidelity to start a direct transfer. Your arrangement with your current advisor may include a termination fee, check the paperwork you signed when you signed up for the account.
It can take some time to do this, meanwhile you will still be paying the advisor's fees.
#2 Is the same as what you would do in #1, except you need to terminate the account, and they need to sell everything you have in the account (including commissions and/or early withdrawal penalties) and issue you a check. Then you take the check to Fidelity and set up a new IRA. You have 60 days to do this once you have the check.
Fidelity can help you with a 3+year plan, but not until the account is set up and the money is available to invest in.