How to Withdraw Money From Your Fidelity Account

The three ways to move money out of Fidelity

You can withdraw money from Fidelity through a bank transfer to your linked account, a check mailed to your address, or a wire transfer for larger amounts. Bank transfer is the fastest and most common method — money typically arrives within one to three business days. The process differs slightly depending on whether you're withdrawing from a brokerage account, an IRA, or a workplace retirement plan, and some account types have restrictions on when you can withdraw without penalties.

Before you start, know that Fidelity does not charge a fee to withdraw your own money. However, if you're withdrawing from a retirement account before age 59½, you may owe income tax and a 10 percent early withdrawal penalty unless an exception applies. Non-retirement accounts have no age restrictions.

Key Takeaways

• Bank transfer is the fastest withdrawal method and usually takes one to three business days with no fee from Fidelity.
• You must link a bank account to Fidelity before you can transfer money out; this takes one to two business days to verify.
• Withdrawals from IRAs and 401(k)s before age 59½ typically trigger a 10 percent penalty plus income tax, with limited exceptions.
• Fidelity processes withdrawal requests on business days only; requests made on weekends or holidays are processed the next business day.

Setting up a linked bank account for transfers

To withdraw money via bank transfer, you need a bank account linked to your Fidelity account. Log into your Fidelity account online or through the mobile app, go to the "Accounts" or "Account Settings" section, and select "Add Bank Account" or "Link External Account." Enter your bank's routing number, your account number, and the account type (checking or savings).

Fidelity will send two small deposits (usually under $1) to your bank account within one to two business days. You then return to Fidelity and confirm the exact amounts of those deposits to verify you own the account. Once verified, you can transfer money out immediately. This verification step protects your account from unauthorized transfers to unknown banks.

If you already have a bank account linked from a previous deposit into Fidelity, you can use that same account to withdraw. You do not need to link it again.

Withdrawing through a bank transfer

Once your bank account is linked and verified, go to the "Accounts" tab in Fidelity and select the account you want to withdraw from. Click "Transfer Money" or "Withdraw," then choose "Transfer to External Account." Select the linked bank account, enter the amount you want to withdraw, and confirm the transaction.

The money leaves your Fidelity account immediately, but it takes one to three business days to appear in your bank account. The exact timing depends on your bank and whether you submit the request on a business day. Requests submitted on Friday evening may not process until Monday, and requests submitted on a holiday are processed the next business day.

You can withdraw any amount up to your total account balance. Fidelity does not limit the number of transfers you can make per month from a brokerage account, though some retirement accounts have restrictions (see the section on retirement accounts below).

Requesting a check or wire transfer

If you do not have a linked bank account or prefer not to use one, you can request a check mailed to your address on file. In the Fidelity app or website, select "Withdraw" and choose "Check." Enter the amount and confirm. Fidelity mails the check within two to three business days, and delivery takes an additional five to seven business days depending on your location.

A wire transfer is faster but less common for small withdrawals. Wire transfers typically arrive the same business day or the next business day, but Fidelity charges a wire fee (usually $15 to $25 depending on whether the wire is domestic or international). To request a wire, call Fidelity at 1-800-343-3548 and speak with a representative, as the website does not offer wire transfers for all account types.

Withdrawing from an IRA or Roth IRA

Withdrawals from a traditional IRA or Roth IRA follow the same process as a brokerage account — bank transfer, check, or wire — but the tax consequences differ. With a traditional IRA, you owe income tax on the full amount you withdraw. With a Roth IRA, you can withdraw the money you contributed (your "basis") tax-free at any time, but withdrawals of earnings are taxed and penalized if you are under 59½ and have not held the account for at least five years.

If you withdraw from either type of IRA before age 59½, you owe a 10 percent early withdrawal penalty on the taxable portion unless an exception applies. Common exceptions include withdrawals for a first home purchase (up to $10,000 lifetime), medical expenses exceeding 7.5 percent of your income, disability, or substantially equal periodic payments. Fidelity does not withhold the penalty automatically; you pay it when you file your tax return.

Fidelity will send you a Form 1099-R after the calendar year ends, showing the amount you withdrew and how much is taxable. Keep this form for your tax records.

Withdrawing from a 401(k) or workplace plan

Withdrawals from a 401(k) or other workplace retirement plan are more restricted than IRA withdrawals. Most plans do not allow you to withdraw money while you are still employed, even if you are over 59½. Once you leave your job, you can roll the money into an IRA (which gives you more withdrawal options) or leave it in the plan and withdraw from it.

If you withdraw directly from a 401(k) before age 59½, you owe income tax plus a 10 percent penalty on the full amount, with limited exceptions. Some plans allow "hardship withdrawals" for immediate financial need (medical bills, preventing foreclosure, or funeral expenses), but these still trigger the penalty unless you meet a specific exception. Contact your plan administrator or Fidelity's retirement plan team to learn whether your plan allows hardship withdrawals and what documentation you need.

If you are age 55 or older and have left your job, you may be able to withdraw from your 401(k) without the 10 percent penalty (though you still owe income tax). This exception, called the "Rule of 55," applies only to the plan from the employer you just left, not to IRAs or plans from previous employers.

What happens to your investments when you withdraw

When you request a withdrawal, Fidelity sells enough of your investments to cover the amount you are withdrawing. If you hold individual stocks, mutual funds, or exchange-traded funds (ETFs), Fidelity will liquidate them in the order you specify or in a default order if you do not specify. This means you may realize a capital gain or loss, which affects your taxes.

If you have a loss on an investment, selling it can offset gains elsewhere in your portfolio, which may lower your tax bill. If you have a gain, you owe capital gains tax on the profit. Long-term gains (on investments held over one year) are taxed at a lower rate than short-term gains. Fidelity sends you a Form 1099-B after the year ends, showing all sales and their gains or losses.

To avoid selling investments at a loss or triggering unwanted capital gains, review your holdings before you withdraw and consider which positions to liquidate.

Frequently Asked Questions

How long does it take to withdraw money from Fidelity?

Bank transfers take one to three business days after you submit the request. Checks take two to three business days to mail plus five to seven days for delivery. Wire transfers take the same business day or the next business day but cost $15 to $25. Requests submitted on weekends or holidays are processed the next business day.

Can I withdraw money from my Fidelity account without a linked bank account?

Yes. You can request a check mailed to your address, or you can call Fidelity to arrange a wire transfer. Both methods take longer than a bank transfer and a wire transfer costs a fee, but neither requires a linked account.

Do I have to pay taxes when I withdraw from a brokerage account?

You do not owe income tax on the withdrawal itself, but you may owe capital gains tax if you sell investments at a profit. Fidelity sends you a Form 1099-B showing all sales and gains or losses. You report these on your tax return.

What is the penalty for withdrawing from an IRA early?

You owe a 10 percent penalty on the taxable portion of the withdrawal if you are under 59½, plus income tax. Some exceptions exist, such as first-time home purchases (up to $10,000), medical expenses, or disability. You pay the penalty when you file your tax return; Fidelity does not withhold it automatically.

Can I withdraw from my 401(k) while I still work?

Most 401(k) plans do not allow withdrawals while you are employed. Once you leave your job, you can withdraw or roll the money into an IRA. Some plans allow "hardship withdrawals" for immediate financial need, but these still trigger the 10 percent penalty unless you meet a specific exception.