Transfer Money/Shares - Frequently Asked Questions

Q: I've never moved money online with Fidelity before. Where do I begin?

A: Consider taking a tour to learn more about the various ways to move money.

Q: When do I use "Transfer Assets From Another Financial Institution"?

A: Use this option when you are consolidating assets to Fidelity, for example, when you want to transfer your Company XYZ IRA assets to your Fidelity IRA.

Q: Why are some of my accounts not listed or enabled for online money movement?

Only accounts eligible for on-line transactions are listed. Restrictions on moving money to or from an account may apply.

Q: How do I add a new bank to take advantage of electronic funds transfer (EFT) or wire transfers?

A: Go to the Bank Information page and select Add a New Bank for each of the accounts you want to set up EFT or wire transfer capability. All you need to set up an EFT is your bank account number and bank routing number located at the bottom of one of your checks. You will need to check with your bank for wire transfer instruction details.

Q: How do I update my bank information for EFT or wire transfers?

A: You can make changes to your bank information from the Bank Information page. For wire transfers, you can update your bank account number and recipient information; for EFTs, you will need to delete the current bank information and re-add the bank with the new information. As always, you can add an entirely new bank by selecting the Add a New Bank link.

Q: When will my transfer be processed?

A: EFT deposits are generally processed within 4 business days after you submit the request. EFT transfers to your bank are delivered within 1 to 2 business days, if received by 4 p.m. ET and are subject to the receiving bank's policies regarding fees and availability.

Wire transfers are delivered on the same business day, if received by 4 p.m. ET, and are subject to the receiving bank's policies regarding fees and availability.

EFT and wire transfers from mutual fund accounts require an additional 1 to 2 business days.

If you choose to receive a check rather than use an electronic or wire transfer method, you'll need to allow an additional 7-10 business days for delivery.

Q: Are there any fees for transfers?

A: Fidelity will not charge you a fee for EFT or check requests; however, wire transfers may incur a Fidelity fee and a fee from the receiving bank.

Q: Are there minimum or maximum deposit or contribution amounts?

A: Investment minimums and contribution limits vary by account type. IRA contribution limits and HSA contribution limits vary. It is your responsibility to ensure that you are not exceeding the contribution limits.

Q: Is there a limit on the amount I can withdraw?

Generally you can withdraw up to the cash you have available in your account. Cash available to withdraw is the amount of money in your core or cash position. If you want to withdraw more than the cash you have available, you will need to place a trade to sell out of investment positions into cash. Note that if you are taking a retirement or HSA withdrawal, you should consider any applicable tax implications and penalties.

If you are taking a withdrawal from your HSA to pay for a qualified medical expense for you, your spouse or your dependents, your withdrawal (and any earnings) will be free from federal income taxes. If used for non-qualified medical expenses, the amount is included in gross income and may be subject to a tax penalty. You must maintain the records needed to substantiate such transactions for tax purposes.

Q: Is there a limit on the amount I can transfer electronically?

A: Wire transfers have a daily transfer limit of $100,000. Electronic funds transfers have a limit of $100,000 per transfer, and a $250,000 per day. If you need to transfer larger amounts, please contact a Fidelity representative at 800-343-3548 for assistance.

Q: Can I send an international wire transfer?

A: Use the Bank Wire Form to send an international wire transfer. If you have questions about this form or process, please contact a representative at 800-343-3548.

Q:How can I check the status of my transfer?

A: You can view your transfer status on the Pending Transfers page. You may also sign-up to receive status-update alerts via text messaging or email.

Q: Can I cancel an EFT or Wire Transfer?

A: You may attempt to cancel a transfer if the transfer status is pending. You may view your transfer status on the Pending Transfers page.

Q: What is a qualified medical expense?

A: Qualified medical expenses as defined by the Internal Revenue Code generally cover most medical care and services, dental and vision care, prescription drugs, and insulin that are not covered by insurance or otherwise. Beginning in 2011, over-the-counter drugs are no longer considered a qualified medical expense. Medical insurance premiums are generally not considered qualified medical expenses; however premiums paid for COBRA continuation coverage, qualified long-term care insurance (subject to certain limitations), and Medicare premiums are considered qualified medical expenses.

For more details on what constitutes a qualified medical expense, please refer to IRS Publication 969 and 502 at the IRS website, or consult a tax professional.

Q: What is the tax treatment of HSA contributions, withdrawals, and investment earnings?

  • Your employer may provide for employee contributions to be made on a pre-tax basis via payroll deduction to your HSA. After-tax contributions (e.g., those made by check or online money transfer) will be tax deductible (for federal income tax purposes), up to your maximum annual contribution amount.
  • Withdrawals from your HSA, including earnings, will be tax-free (for federal tax purposes) if used to pay for qualified medical expenses for yourself, your spouse and your dependents.
  • Withdrawals used to pay for expenses other than qualified medical expenses are considered taxable income and will be subject to an additional 20% penalty. The 20% penalty will not apply to withdrawals made if you become disabled, once you reach age 65, or after your death.
  • Contributions in excess of your maximum annual contribution limit will be included in your gross income. They will also be subject to an additional 6% excise tax if not withdrawn before the deadline (including any extensions) for filing your federal income tax return for the tax year in which they were made.

You are responsible for determining your maximum annual contribution amount and ensuring that your contributions do not exceed such amounts. In addition, you must comply with all IRS tax reporting requirements. Please consult with a tax professional to ensure that you manage and monitor your HSA account consistently with all requirements.

Q: How can I return money to my Fidelity HSA if I mistakenly take a distribution for an expense that I reasonably thought was a qualified medical expense?

A: To make a repayment to your Fidelity HSA, you must submit a completed "Fidelity HSA® Return of Mistaken Distribution" form to Fidelity in accordance with applicable instructions.

If you are eligible to return money to your HSA, it will not:

  • Be included in your income
  • Count towards your annual contribution limit
  • Be subject to the 20% penalty that is associated with withdrawals from an HSA that are not used for Qualified Medical Expenses
  • Be subject to the 6% excise tax on excess contributions.

If applicable, a corrected Form 1099-SA (reporting HSA distributions) will be mailed to you.
For more information please see IRS Notice 2004-50, Q&A 37 or consult with your tax advisor regarding your individual situation.

Q: How much can I contribute to my HSA?

A: Each year, the IRS establishes contribution limits for the upcoming year. This limit is for total contributions made to your account, including any made by employer or a third party. As long as you are covered by an HSA-eligible health plan on December 1 of any given year, you may contribute up to your maximum amount specified regardless of the month in which you established your HSA. If you’re age 55 or older, you can generally contribute up to an additional $1,000 in 2016 and 2017 as a catch-up contribution regardless of whether you have individual or family health care coverage.

Remember, all contributions made to your account are aggregated and cannot exceed your maximum contribution limit. If you are considering making an after-tax contribution, please consider that any contributions that would place you over your maximum annual contribution amount, including employer and/or payroll contributions may have tax consequences.

Q: Can I make HSA catch-up contributions?

A: If you are at least 55 years old, are not enrolled in Medicare and otherwise are an eligible individual, you may elect to make additional "catch-up" contributions to your HSA. The maximum catch-up contribution amount is $1,000 for 2016 and 2017.

If you turn age 55 at any time during a given tax year, you are eligible for the full catch-up contribution amount for that year (provided that you have been enrolled in an HSA-eligible health plan as of the first day of each month for the entire plan year and otherwise are an eligible individual, or you are enrolled in an HSA-eligible health plan after the beginning of the plan year, or you are an eligible individual as of December 1 and remain an eligible individual for the twelve (12) months following such month.

Otherwise such catch-up contributions must be pro-rated based on the number of months you are an eligible individual).

Q: How are excess HSA contributions treated?

Once you reach your maximum annual contribution amount, any excess contributions will be considered taxable income and subject to a 6% excise tax, unless the excess contributions (and any earnings on those contributions) are withdrawn by your federal tax filing deadline (including any extensions), for the applicable tax year. For more information, see IRS Publication 969 at the IRS website.