Closing a Fidelity account requires you to move or liquidate your holdings, then submit a closure request through your account settings or by phone

Fidelity does not charge a fee to close an account. The process itself takes a few minutes, but what takes time is moving your money out first. If you have stocks, bonds, mutual funds, or cash sitting in the account, you need to decide what to do with each position before Fidelity will close it. You can sell holdings, transfer them to another brokerage, or leave cash in place while the account winds down. The closure request itself happens online or by calling Fidelity's customer service line.

The steps differ slightly depending on whether you have a taxable brokerage account, an IRA, a 401(k), or an employer-sponsored plan. Each type has different rules about what you can do with the money inside, and some require paperwork beyond what you submit to Fidelity itself.

Key Takeaways

  • You must liquidate or transfer all holdings out of your account before Fidelity will close it; the company will not close an account with money or securities still inside.
  • Taxable brokerage accounts can be closed when ready after you move the funds, but IRAs and 401(k)s have withdrawal rules that may trigger taxes or penalties if you are under 59½.
  • You can transfer securities to another brokerage using an ACAT (Automated Customer Account Transfer) form, which usually takes three to five business days.
  • Closing the account online through your Fidelity dashboard is faster than calling, but phone support can walk you through the process if you have questions about your specific holdings.

Liquidating or moving your holdings

Before you submit a closure request, every dollar and every share in your account must go somewhere else. If you have a brokerage account with individual stocks or mutual funds, you can sell them directly through Fidelity's trading platform. Log into your account, find each position, and click "Sell." The cash from the sale lands in your Fidelity cash management account within one to three business days, depending on the security type.

If you want to keep your investments and move them to another brokerage instead, use an ACAT transfer (Automated Customer Account Transfer Service). Contact the brokerage you are moving to and ask them to initiate the transfer. They will request your Fidelity account details and the specific holdings you want moved. Fidelity processes ACAT requests within three to five business days. You do not need to contact Fidelity directly for this; the receiving brokerage handles the request on your behalf.

For cash sitting in your account, you can transfer it to your linked bank account through Fidelity's transfer feature. Go to "Accounts & Trade" in your dashboard, select "Transfer Funds," and choose your bank account. Electronic transfers typically take one to three business days. Once all holdings and cash are gone, your account is ready to close.

Closing a taxable brokerage account

A standard brokerage account (not a retirement account) has no withdrawal restrictions. Once you have moved all your money and securities out, you can close it when ready. Log into your Fidelity account and go to "Account Settings." Look for "Close Account" or "Account Closure." Fidelity will ask you to confirm that the account is empty and may ask why you are closing it, but this is optional information.

You can also call Fidelity's customer service at 1-800-343-3548 to close the account by phone. Have your account number ready. The representative will confirm that your account has a zero balance and process the closure. The account will be marked as closed within one business day, though you may see it in your account list for a few weeks before it disappears entirely.

Closing an IRA or Roth IRA

Closing an IRA is more complicated because withdrawals are taxable and may carry penalties. If you are under 59½ and withdraw the money, you will owe income tax on the full amount plus a 10 percent early withdrawal penalty (with some exceptions, such as first-time home purchase or disability). If you are 59½ or older, you owe income tax but no penalty.

Your best option is usually to transfer the IRA to another brokerage rather than close it and withdraw the funds. Use an ACAT transfer, which moves the account as-is without triggering taxes or penalties. The receiving brokerage will set up a new IRA in your name with the same money and investments intact. Once the transfer is complete, you can ask Fidelity to close the old IRA account.

If you do want to withdraw the money and close the account, Fidelity will send you a 1099-R form at tax time showing the withdrawal amount. You will report this on your tax return and pay tax on it. Contact Fidelity to discuss your specific situation before withdrawing, because some circumstances (such as substantially equal periodic payments or Roth conversion rules) may affect how much you owe.

Closing a 401(k) or employer-sponsored plan

If your 401(k) is held at Fidelity because your employer uses Fidelity as the plan administrator, you cannot close the account yourself while you are still employed. You can only withdraw money under your plan's rules — typically when you leave the job, reach 59½, face a hardship, or meet other conditions your employer has set. Contact your company's benefits department or HR to learn what options are available to you.

If you have left your job and your old 401(k) is now sitting at Fidelity, you have four choices: leave it there, roll it into your new employer's plan, roll it into a traditional IRA, or withdraw it and pay taxes and penalties. A rollover to an IRA is the most common path because it avoids when ready taxes and gives you more investment choices. To do this, contact Fidelity and ask for a direct rollover form. Fidelity will send the money directly to your IRA provider, which avoids the 60-day important date and withholding taxes that explore to indirect rollovers.

What happens after you request closure

Once Fidelity processes your closure request, the account is closed and you can no longer trade or deposit money into it. You will no longer receive statements or see the account in your dashboard. If you have pending transactions (such as a transfer that has not yet cleared), Fidelity may delay the closure until those transactions settle.

If you closed the account but forgot to move some money out, contact Fidelity when ready. The company may be able to reopen the account or process a final withdrawal. The sooner you call, the easier this is to fix. Fidelity's customer service number is 1-800-343-3548.

Transferring to another brokerage during closure

If you are closing your Fidelity account because you want to move to a different brokerage, an ACAT transfer is usually faster and simpler than selling everything and moving the cash. The receiving brokerage handles most of the work, and your investments stay invested the whole time instead of sitting in cash while you wait for the transfer to clear.

Some brokerages offer cash bonuses or fee reimbursement if you transfer a large account to them. Check whether your new brokerage has any offers before you start the transfer. If they do, ask them how much you need to transfer to may have access to and whether there are any holding periods. Then initiate the ACAT from their side, and they will pull your account information from Fidelity automatically.

Frequently Asked Questions

Does Fidelity charge a fee to close my account?

No. Fidelity does not charge a closure fee. You may owe taxes or penalties if you withdraw money from a retirement account early, but that is a tax consequence, not a Fidelity fee. Some brokerages charge outbound transfer fees, but Fidelity does not.

Can I close my account if I still have money in it?

No. Fidelity requires you to move all cash and securities out before closing. You can sell your holdings, transfer them to another brokerage, or move cash to your bank account. Once the account balance is zero, you can submit a closure request.

How long does it take to close a Fidelity account?

The closure request itself takes one business day to process. However, moving your money out first takes longer — selling stocks takes one to three days to settle, and bank transfers take one to three days. Plan for one to two weeks total if you are liquidating everything.

What if I want to reopen my account after closing it?

You can open a new Fidelity account at any time. If you closed the account less than a year ago, Fidelity may be able to restore some of your account history, but this is not may provide. It is usually simpler to just open a fresh account.

Do I need to do anything special to close a joint account?

Both account owners must consent to the closure. If you are the only one who wants to close the account, you may need to remove the other owner first or contact Fidelity to discuss your options. Call 1-800-343-3548 to speak with someone about your specific situation.