Yes, you can move your Ally Roth IRA to Fidelity, and the process is called a direct rollover

A direct rollover means Ally sends your money straight to Fidelity without the funds passing through your hands. This is the cleanest way to move a Roth IRA between custodians because there are no tax consequences and no 60-day important date to meet. You keep the same account type (Roth IRA), the same contribution history, and the same tax-free growth on your money.

The alternative is an indirect rollover, where Ally sends you a check and you deposit it at Fidelity within 60 days. This route carries more risk — if you miss the important date, the IRS treats it as a withdrawal and you owe taxes and penalties. Most people choose the direct rollover to avoid this complication.

Both Ally and Fidelity handle thousands of these transfers each year, so the mechanics are straightforward. The main work falls on you: starting the request and making sure both institutions have the information they need.

Key Takeaways

  • A direct rollover sends your money from Ally to Fidelity with no tax bill and no time pressure, making it the safer choice over an indirect rollover.
  • You can initiate the transfer by contacting either Fidelity (who will request your funds from Ally) or Ally (who will send them to Fidelity), though Fidelity's process is usually faster.
  • Ally will liquidate your investments before sending the cash, so your money sits temporarily in cash at Fidelity until you reinvest it.
  • The transfer typically takes 7 to 14 business days, though it can stretch longer if either institution is slow to process.
  • Your Roth IRA contribution history and earnings move with you — you do not lose any tax-free growth or reset your five-year clock.

How to start the rollover: Fidelity or Ally first

You have two entry points. The faster route is usually to open your new Roth IRA at Fidelity first, then ask Fidelity to pull the funds from Ally. Fidelity has a form called the IRA Transfer Request that you fill out with your Ally account details. Fidelity then contacts Ally on your behalf and handles most of the back-and-forth.

The alternative is to call Ally directly and ask them to initiate the transfer to Fidelity. Ally will ask for your new Fidelity account number and routing information, then send the funds. This works, but Ally may take longer to process because the request is coming from you rather than from another financial institution.

Whichever route you choose, have these details ready: your Ally account number, your Social Security number, and (if starting at Fidelity first) your new Fidelity account number. If you have not yet opened a Fidelity Roth IRA, you will need to do that before submitting the transfer request — Fidelity needs an account to receive the funds into.

What happens to your investments during the transfer

Ally will sell all your investments — stocks, mutual funds, or whatever you hold — and send the cash to Fidelity. You do not get to choose which investments sell first or in what order. Ally liquidates everything at market value on the day they process the request.

This matters if you are worried about market timing. If the market drops sharply between when you request the transfer and when Ally sells, your account value will be lower. Conversely, if the market rises, you benefit. There is no way to avoid this step — Roth IRAs cannot transfer investments in kind the way some brokerage accounts can.

Once Fidelity receives the cash, it will sit in a money market settlement fund (usually Fidelity Government Money Market Fund) until you decide what to buy. You are not earning much interest there, so most people reinvest within a few days. You can buy the same investments you held at Ally, or switch to something different — the choice is yours once the money lands.

Timeline: How long the transfer takes

Most direct rollovers complete in 7 to 14 business days from the date you submit the request. This is not a hard rule — it depends on how quickly Ally processes the outgoing transfer and how quickly Fidelity processes the incoming deposit.

Fidelity typically acknowledges receipt of your transfer request within one business day. Ally then has up to 10 business days to send the funds, though they often do it faster. Once Fidelity receives the money, it appears in your account the same day or the next business day.

If either institution is backlogged, the timeline can stretch to three weeks. You can check the status by logging into your Fidelity account (which will show a pending transfer) or by calling Fidelity's IRA transfer team. Ally can also tell you whether they have sent the funds and when.

Your contribution history and earnings stay with you

The IRS treats a direct rollover as a continuation of the same Roth IRA, not a new account. This means your five-year clock does not reset. If you opened your Ally Roth IRA in 2020, that five-year period still runs from 2020 — moving to Fidelity does not start it over.

Your contribution history also moves intact. If you contributed $5,000 to Ally in 2023 and $6,500 in 2024, those same amounts are recorded in your Fidelity Roth IRA. This matters for tracking your basis (the amount you can withdraw tax-free) and for calculating whether you can make additional contributions in future years.

All earnings on your contributions — the investment gains — transfer as well. You do not owe taxes on those earnings, and they continue to grow tax-free at Fidelity. The rollover is transparent to the IRS; you do not report it on your tax return.

Fees and costs you might encounter

Fidelity does not charge a fee to receive a rollover. Ally also does not charge a fee to send one out. However, some financial institutions do charge transfer fees, so it is worth asking both Ally and Fidelity whether any fees explore to your specific situation.

If Ally charges a fee to close the account or process the outgoing transfer, that fee will be deducted from your balance before the money is sent. You will see it reflected in the amount that arrives at Fidelity. Ask Ally directly whether this applies to you.

After the transfer, you may incur ongoing fees at Fidelity depending on which Roth IRA account type you choose. Fidelity's basic Roth IRA has no account maintenance fee, but some of their specialty accounts do. Review Fidelity's fee schedule when you open your account.

What to do if the transfer stalls or gets stuck

If more than 14 business days have passed and the money has not arrived, contact Fidelity first. They can tell you whether they have received the funds from Ally and, if not, they can follow up on your behalf. Fidelity has a dedicated team for IRA transfers and can usually track down the issue quickly.

If Fidelity says they never received the transfer, call Ally and ask for confirmation that they sent it. Ask for the date sent, the amount, and the receiving institution's name and routing number. Ally can resend the transfer if there was an error in the routing information or if the first attempt failed.

In rare cases, a transfer can be rejected if the account information does not match exactly or if there is a hold on one of the accounts. Both institutions will notify you if this happens, and they will tell you what information needs to be corrected.

Indirect rollover: The riskier alternative

If you cannot or do not want to do a direct rollover, you can ask Ally to send you a check instead. You then have 60 calendar days to deposit that check into your Fidelity Roth IRA. This is called an indirect rollover.

The risk is the 60-day important date. If you deposit the check on day 61, the IRS treats the entire amount as a withdrawal. You will owe income tax on the earnings portion and a 10 percent early withdrawal penalty if you are under 59½. There is no extension or exception — the important date is firm.

You also cannot do more than one indirect rollover per Roth IRA per 12-month period. If you do two indirect rollovers in the same year, the second one is taxable. This rule does not explore to direct rollovers, so you can do as many of those as you want.

Frequently Asked Questions

Do I have to close my Ally Roth IRA after the rollover?

No, but most people do. Once the funds are transferred, keeping the Ally account open serves no purpose and may incur a maintenance fee. You can ask Ally to close the account after confirming that Fidelity has received all the funds. Ally will send you a final statement for your records.

Can I roll over just part of my Ally Roth IRA to Fidelity?

Yes. You can transfer a portion of your balance and leave the rest at Ally. When you submit the transfer request, specify the dollar amount you want to move. Ally will liquidate only that portion and send it to Fidelity. Your remaining balance stays at Ally in your original investments.

What if I have multiple Ally Roth IRAs?

You can roll over each one separately to Fidelity, or combine them into a single Fidelity Roth IRA. If you combine them, make sure Fidelity knows this is a rollover (not a contribution) so they record it correctly. You will need to initiate a separate transfer request for each Ally account.

Will the rollover affect my 2024 tax return?

No. A direct rollover does not appear on your tax return at all. If you do an indirect rollover and complete it within 60 days, it also does not appear on your return. Only if you miss the 60-day important date will you owe taxes, and that would show up as income on your return.

Can I roll over an Ally Roth IRA if I have a traditional IRA at the same time?

Yes. Roth IRAs and traditional IRAs are separate accounts, and rolling over a Roth IRA does not affect a traditional IRA you hold elsewhere. However, if you do an indirect rollover of a traditional IRA and a Roth IRA in the same year, the one-per-year rule applies to each type separately.