If you want to withdraw your money from Fidelity and then close your account, you need to complete a few steps first. Fidelity generally requires the account to have no remaining cash, investments, or pending activity before you can close it.
Here is how to withdraw your money and close your Fidelity account step by step.
How to Withdraw Money From Fidelity
Start by opening the Fidelity app and tapping Transact at the bottom of the screen. Then select Transfer.
You will be taken to the transfer screen. Fidelity may display a notice explaining that transfers from a bank can be held for two to seven business days. Money moving into or out of Fidelity may take time to fully settle.
Under the From field, select the Fidelity account you want to withdraw money from.
You will see two numbers associated with the account:
- Total account value
- Cash available to withdraw
These amounts are not necessarily the same.
How to Check Your Cash Available to Withdraw
Your total account value includes everything in the account, including investments and cash. Your cash available to withdraw represents money that is currently available to take out of the account.
For example, imagine you have $10,000 invested in stocks or ETFs and another $200 in your core position. Your total account value would be around $10,200, but you may only have $200 available to withdraw.
This is an important distinction to understand before you try to close your Fidelity account.
How to Withdraw Money That Is Invested
You cannot normally withdraw money that is currently invested in stocks, ETFs, or mutual funds without selling those investments first.
For example, if you have $10,000 invested and only $200 in available cash, you cannot simply withdraw the entire $10,200. You would need to sell investments if you want to turn the invested portion into cash.
Selling investments can have tax consequences, particularly if you have made a profit. Consider the potential tax impact before selling securities simply to empty the account.
Once you have available cash, select your linked bank account under the To field.
For a one-time withdrawal, set the frequency to Once. Enter the amount you want to withdraw, review the transaction, and submit it.
How Long Fidelity Withdrawals Take
After submitting the withdrawal, the money will need time to reach your bank account. The exact timing can depend on the bank and the type of transfer.
Before you attempt to close your Fidelity account, wait until the withdrawal has completed and there is no remaining balance or pending activity.
How to Close Your Fidelity Account
Once your account is empty, you can start the closure process.
Open the Fidelity app and tap the Search icon in the upper-right corner. Type close account into the search bar.
Look for the option that asks How do I close an account? Selecting it will open Fidelity’s virtual assistant, which guides you through the account closure process.
Before continuing, carefully review the information Fidelity provides about what happens after the account is closed.
What Happens When You Close Your Fidelity Account?
Closing an account can affect services and transactions connected to it.
For example, direct deposits or automatic debits connected to the account can fail after closure. Debit cards associated with the account are also cancelled, while beneficiaries and bill-pay recipients are removed.
Other features connected to the account, such as margin options and certain trading features, are also removed.
Before you close your Fidelity account, make sure you have moved any paycheck direct deposits, automatic bill payments, recurring transfers, or other transactions to another account.
How to Choose the Fidelity Account You Want to Close
The virtual assistant will ask you to choose the account you want to close.
If you have multiple Fidelity accounts, such as a Roth IRA and an individual brokerage account, they will appear as separate options.
Select the specific account you want to close.
If you do not see the account you want to close, Fidelity may require you to contact them directly. Certain account types, including some managed accounts, 401(k) accounts, or trust accounts, may require a different closure process.
How to Clear Your Fidelity Balance
If your Fidelity account still contains cash or investments, you will not be able to close it yet.
Fidelity may show you the remaining securities and provide several options, such as:
- Sell securities
- Transfer or withdraw
- Contact Fidelity
You need to deal with any remaining investments and cash before you can close your Fidelity account.
What to Do With Investments Before Closing
If you still own stocks, ETFs, or mutual funds, you have a few choices.
You can sell the investments and withdraw the resulting cash. However, selling investments for a profit can create a taxable event.
If you are closing the account because you are moving to another brokerage, another possibility is an ACATS transfer. ACATS stands for Automated Customer Account Transfer Service and allows eligible investments to be transferred from one brokerage to another.
An ACATS transfer is generally initiated through the new brokerage. Instead of selling your investments, the securities can be transferred to the new account, which can help avoid selling them simply because you are changing brokerages.
If you are closing the account because you no longer want to invest and need the money as cash, selling your investments may be necessary. Keep potential tax consequences in mind when doing so.
How to Withdraw Your Remaining Cash
After your investments have been handled, you should be left with cash that can be transferred to your linked bank account.
Select Transfer or withdraw and follow the instructions to move the remaining money.
If your bank account is not already linked, you may need to add it first. Having a linked bank account can make the process easier than waiting for a paper check.
When to Contact Fidelity
The Contact Us option can be useful if something is preventing you from closing the account.
For example, you may need assistance if:
- Your account is locked
- You have a managed portfolio
- A transfer is still pending
- Your account has an unusual restriction
- You cannot resolve the remaining balance yourself
A Fidelity representative can help determine what needs to happen before the account can be closed.
How to Finish Closing Your Fidelity Account
Once the account has no cash, investments, or pending activity, return to the virtual assistant and search for close account again.
Select the account you want to close and follow the remaining instructions. With the balance cleared, you should be able to proceed with the final authorization.
Review the final information and confirm that you want to close the account.
Once everything has been cleared, the actual closure process can be relatively quick.
What to Do After You Close Your Fidelity Account
After you close your Fidelity account, keep an eye on your email and account records.
Save your final account statement and any tax documents Fidelity sends you. You may need these documents later when preparing your taxes or reviewing your financial records.
If you had taxable investment activity during the year, make sure you keep the relevant tax forms and transaction information.
Final Thoughts
The key to successfully closing your Fidelity account is making sure everything is cleared before starting the final closure process.
First, withdraw your available cash. If you still have investments, decide whether to sell them or transfer them to another brokerage. Then make sure there are no pending transactions or recurring payments connected to the account.
Once the balance is completely cleared, you can use Fidelity’s account-closure process to finish closing your Fidelity account.
