Can I move my Traditional IRA to another brokerage firm without any tax implications?

Investing
#1

I have a traditional IRA through Invesco which was rolled over many years ago and set up by a financial advisor acquaintance who is no longer there. Thanks to PFC course, I now know what to look for and it turns out I’ve been paying a $25 annual fee all these years and expense ratios between 1.2 and 1.53%!

Is it possible to easily move my Traditional IRA to a brokerage account like Fidelity or Vanguard? How do I know if there will be any fees or tax implications?

Pardon my ignorance, still new at this!

#2

Hi @jendesouza!

Thank you for the question! It is good that you took a closer look at the fees and are now taking action!

Yes, it is possible to transfer your IRA from one brokerage (Invesco) to another (Fidelity, Vanguard, etc). I’m not sure if there are any fees - it depends on if Invesco charges any form of a transfer fee. Hopefully there aren’t any, or they are very minimal. As far as taxes, if the transfer is done correctly, it will not be a taxable event. I would start with calling Invesco and asking them more information about a direct transfer (trustee to trustee transfer) to whichever brokerage you decide. And follow the steps that they tell you. If you have a traditional IRA now, you will want to make sure that you are transferring it to a traditional IRA and not a ROTH IRA or else that will be a taxable event.

I hope this helps. Let us know if there are any questions!

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