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How To Close Fidelity Account (2023)
How to close a Fidelity account online, on mobile app, or on the phone. Fee to delete a Fidelity brokerage or IRA account.
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How to Close an Account at Fidelity
Do you have a securities account with Fidelity Investments? If you do but don’t use it anymore, it is advisable to close the account due to the prevalence of cybercrime nowadays. Here’s how to do just that:
Get Rid of the Securities First
The first task is to eliminate securities from the account. This can be done in one of two ways. Either you can sell the assets (or buy to cover short positions) or you can transfer them out. The former method most likely will entail tax consequences in a taxable account, so you’ll definitely want to talk with a tax pro before going down this road.
As for transfers, it’s possible at Fidelity to send securities through the DTC or ACAT network. Because Fidelity offers both fractional-share trading and dividend reinvesting, it’s very likely that you have some fractional shares on stock and ETF positions. These can never be transferred, so they will be converted into cash at the time of a transfer.
Get Rid of the Cash Next
Once the securities are gone, the account’s cash balance is next. This will need to be moved out in one of several ways. Both the website and mobile app have ACH transfer tools. On the app, the transfer form can be found by tapping on the Transact icon that appears in the bottom menu (select Transfer on the following page).
On the website, the ACH transfer tool can be located by clicking on the Transfer link that appears in the top-left corner of the site. If you need to link an external bank account, you can do so by finding the link to add an account underneath the From field.
Once you have both accounts ready to go, set the date of the withdrawal (it could be in the future), the frequency (presumably, this will be just once here), and the amount.
Besides ACH, there are other methods to move a cash balance out of a Fidelity account. These include wire, paper check, and bill pay. Withdrawal by ACH is the simplest.
Closing a Fidelity IRA Account
Fidelity offers several retirement accounts and other tax-deferred accounts. In these cases, withdrawing cash (or moving securities in the case of a rollover) could have tax implications. Be sure to consult with a licensed tax pro before making any transfers or withdrawals from a tax-advantaged account.
Closing the Fidelity Account
Once everything has been removed from the account and it has a $0.00 balance, it’s time to close it. This can be done using one of several methods.
First is the robo chat service on Fidelity’s website and mobile app. Believe it or not, the Artificial Intelligence can close an account all by itself. Just type in (or use the microphone to speak) a request to close the account. The robo system will ask you to verify the specific account in case you have more than one. It will then close it.
The automated chat system can be found on the mobile app by tapping on the dialogue cloud icon at the top of the app. On the website, there is a link at the top of the site.
A second option on the website is the internal messaging widget. To locate it, go to the customer service hub on the site (the link is at the top of the site), then click on Contact Us. Scroll down to find the link to send a secure message.
Another option is to call a human representative over the phone. This method is a little less efficient as there may be a wait time. Although branch locations may have wait times, too, these certainly can process a request to close an account.
Alternatives to Fidelity
Closing the Fidelity Managed Accounts
In a robo or other advisory account, Fidelity will have to liquidate all holdings. This will take time (probably a few days), which will delay the ability to move cash out of it.
Closing a Fidelity Account by Transfer
Instead of going through the steps outlined above, it’s easier and simpler to transfer an account into another one. This process automatically closes the outgoing account. To opt for this method, you obviously need a second account first. It can be either a Fidelity account or another brokerage firm that participates in the ACAT transfer service. In either case, the two account types need to match exactly.
To perform an internal transfer from one Fidelity account to another, go back to the transfer tool we used earlier. This time, instead of moving cash to a linked bank account, you’ll transfer everything to the second Fidelity account, which will automatically appear in the list of available accounts. This should automatically close the first Fidelity account. If you have any trouble, you can always use the robo chat system to close the account.
To close the Fidelity account using a full outgoing ACAT transfer, you’ll need to request the transfer from within the receiving brokerage account at the second firm. A partial ACAT transfer won’t close the Fidelity account, so be sure to select a full transfer.
Both self-directed and robo accounts can be transferred out of Fidelity. Learn more in
How to transfer a Fidelity account.
Broker Promotions
If you are transferring your Fidelity investment account to another firm, make sure to check whether that company offers promotions for opening a new account.
Here is the list of current incentives - Broker Promotions »
Closing a Fidelity Account for a Deceased Client
Closing an account for an account holder who has passed away is a little more involved. To start the process, fill out Fidelity’s online form for a deceased customer and attach a death certificate if available. The account will be restricted, and more time and work will be necessary to eventually get it closed.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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