IRA Fund Transfers and Investment Options
Here’s a summary of the main problem and the solutions discussed in the conversation:
- Main Problem: The user, Viviani, is confused about the process and implications of transferring funds from an IRA to a personal account and whether they can invest in stocks with those funds.
- Solution: Fidelity representatives clarified that moving cash from an IRA to a personal account would be a taxable event, but buying or selling within an IRA typically has no tax implications.
- Additional Information: For international trading, Viviani needs to enable this feature on their non-retirement brokerage account, and it is not available for IRAs.
- Trading and Currency Conversion: Once funds are transferred, they will typically be available for trading the next business day, and currency conversions will integrate with existing positions.
- Authorization Process: To authorize another individual on their account, Viviani can use the “Account Features” tab and will not need mobile phone verification, but must complete the entire authorization form.
These steps provide clarity on Viviani’s concerns about fund transfers, trading eligibility, and account authorization.
Here’s the full thread
I use Fidelity Securities but I recently transferred some IRA funds to Fidelity and I need to sell them and they will be in my Fidelity IRA in cash, can I buy any stocks with that money? or any market? Because I invest in US and HK market
I just noticed that if I’m going to transfer money from an IRA to a personal account then I need to do some taxes, so does this work?
Hi @Viviani, thanks for reaching out. If you currently reside in the US, you should be able to easily invest your IRA funds online. When you buy or sell within an IRA, there typically aren’t tax implications. However, moving any cash from your IRA to a non-retirement account will be taxed as income, and if you’re under the age of 59 and a half, a 10% penalty could be tacked on top of that. Check out this FAQ for more IRA rules: https://www.fidelity.com/retirement-ira/ira-rules-faq 🟢
One other thing, while we do offer international trading on our platforms, not all investments may be available. A good place to start is by clicking the “News & Research” tab and selecting the security type you’re interested in. Again, if you have any other questions, we’re here to help! 🟢
Thank you! where can i convert to hong kong dollars？
thanks for the follow-up, @Viviani. I can definitely assist with information on trading currency.
Clients can buy and sell investments in 25 countries and 16 currencies, with the flexibility to settle their investments in either U.S. dollars or the local currency. In order to do so, you must have International Trading enabled on your account. International Trading can only be enabled on nonretirement brokerage accounts that are registered in the United States. Keep in mind that there can be risks involved when trading internationally. To enable International Trading, please click the link below:
International Trading: https://www.fidelity.com/customer-service/how-to-enable-international-trading
Once you have enabled this feature, it’s very easy to place a trade on Fidelity.com. You can place a Foreign currency trade by following these steps (Login required):
1. Hover on the Accounts & Trade tab and select Trade.
2. Choose the account for the order.
3. Under Trade, select Currency.
4. Enter the details of the order and click Preview Exchange.
5. Click Place Exchange.
There are fees and commissions associate with trading Internationally to be mindful of. You can view them here: https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/Brokerage_Commissions_Fee_Schedule.pdf
Let me know if there’s anything else I can help you with!
Thank you for your detailed help! i found it
New question, can all my retirement accounts only buy US stocks?
Or can I contact my broker who can place some foreign stock trades for my IRA?
I have HKD and SPAXX two positions in my personal cash account. If I convert the usd in SPAXX to hkd, will it be integrated with the hkd of the HKD position, and will they be available at the same time when I trade? ?
Sorry, I didn’t find a solution to this problem in the link
Happy to hop in here!
While Fidelity does allow the trading of international securities and foreign currencies in non-retirement brokerage accounts, this feature is not currently available for IRAs.
this one？
Sorry about that, kitty!
Regarding foreign currency, if you convert more USD to HKD, it will be integrated into your current HKD position.
At the time of a trade for an international stock, you can choose to settle the trade in U.S. dollars or in the local currency. If you settle in U.S. dollars, a “linked” foreign currency exchange order will automatically be executed when your stock trade order fills entirely, or at the end of the trading session if your order fills partially. If your stock trade does not fill at all or if you choose to settle in the local currency, no currency exchange will take place.
In addition to the standard market volatility that every security—whether domestic or foreign—is exposed to, your potential return can be affected by fluctuations in the foreign currency against the U.S. dollar. For example, you might have a 10% gain in the value of a Japanese stock that you settled in yen, but at any given time, the Japanese yen might have depreciated in value against the U.S. dollar, thus offsetting your gain.
Also note that interest is not paid on foreign currency positions.
Let us know if you have any additional questions.
🤝
Thank you, I solved this problem, but now I have a new problem. haha, forgive me for being a newbie.
How long does it take to transfer money from my Rollover IRA to Individual?
and Can I trade stocks immediately after the money arrives at Individual? HK and US markets
Thanks for reaching out to us. No worries at all – we are here for your questions!
While you can transfer money from your IRA to an Individual account, this may be a taxable event. You can view more about this by clicking on the link FidelityEmilio sent you earlier in this thread.
Money transferred between Fidelity accounts are settled and should be available immediately for trading on the US and HK markets.
yeah, IC, I know some taxes need to be deducted, but I want to know if I do it, how long does it take for it to reach my Individual from the IRA account
Also you mean, I can trade immediately after the funds arrive at Individual, right?
Hey again! I can chime in here. Funds will typically be available the following business day for this type of transactions. Once the funds are available in the receiving account, they can be traded immediately as normal. With that said, you may be able to place a trade the same day by contacting us by phone.
aha, IC, which means that the transfer of funds usually arrives at the Individual after the next day or one business day
But once it arrives I can start trading right away, but in my Individual I can do it all by myself, right?
thank you honey
Yes, the funds will typically arrive the next business day if transferred from another account. So if the funds are moved on a Friday, they’d be available Monday. You can start trading right away once the funds arrive.
ok thank you very much for your detailed answer
You’re very welcome!
btw.. if I transfer it, will I need a security code or something? Or is there any kind of notification?
Happy to jump in here. You will not need a security code to transfer funds between your Fidelity account. That being said, we would notify you of the transfer. If you need to check or edit your alerts you can do so by following the steps below:
1. Select “News & Research” and then “Alerts”
2. Choose the applicable action at the top of this page
ahh, IC, there will be a text message notification to my phone, I made a money transfer right?
It can send a notification to your phone as long as it is set up that way on the “Alerts” page.
Within your “Alerts” page, select the “Cash Management” category. From there, scroll down until you view “Online Transfer between Fidelity Accounts Initiated”. You can change the way you receive an alert by clicking “Update”. 🟢
Thanks again
hi marian
Here comes a new question, I would like to ask about agent authorization, how to authorize my friend’s account and my account?
Hi there, @Viviani. I’m happy to hop in here to answer this. If you’d like to add an authorized individual to one of your accounts, you can do so using the “Account Features” tab on our website. You’ll find this tab on your portfolio page, or by clicking “Accounts & Trade” then selecting “Account Features” from the dropdown.
From here, you’ll simply click “Authorized users” from the “Manage Account” section and follow the prompts. 🟢
I see, besides the ID number, is there anything else I need to do? Such as mobile phone verification?
I’m not sure I’m following what you mean by ID numbers. Do you mind clarifying?
sry Social Security Number
After filling in the name and Social Security Number, do I still need a phone number, verification code and the like?
Great seeing you on the Discord, @Viviani!
While you will not need mobile phone verification, you will need to fill out the entire form to add an authorized individual. If everything is in good order after filling out the form, both the owner of the account and the individual you would like to authorize will be notified. The individual you would like to authorize would need to sign the Account Authority form from their email.