M1 Finance to Fidelity Roth IRA Transfer: Process, Fees, and User Insights (2025)

Reddit Factors

User Experiences: A Reddit user reported completing an ACAT transfer via Fidelity’s app; Fidelity covered M1’s transfer fees, and fractional shares were liquidated (cash transferred a week later) [0].
Advice: Users recommend calling Fidelity to inquire about fee waivers and avoiding tax withholding if receiving a check [0].
Clarification: One user noted Fidelity can’t waive M1’s fee directly but may reimburse it (OP cited customer value as a potential reason) [0].

Research Findings

Process: Initiate via Fidelity’s online platform (ACAT transfer) [2]; requires matching account types (Roth IRA → Roth IRA) [1]. Takes 3-5 business days for electronic transfers [4].
Fees: Fidelity charges $0 for incoming ACAT transfers (2025 policy, applies to all account types including Roth IRA [6]; no closing fees [6]). May reimburse transfer fees for eligible accounts [1], but no special policy for M1 users with existing assets [6].
Fractional Shares: Likely liquidated during transfer (cash transferred separately) [3].

Synthesis

Alignment: Reddit experiences confirm research on ACAT process, fractional share liquidation, and Fidelity’s fee reimbursement [0, 4].
Key Takeaway: Fidelity’s 2025 policy supports cost-effective transfers from M1 Finance (no incoming ACAT fees, potential reimbursement of M1’s fees) [6,1].

Risks & Opportunities

Risks: Fractional share liquidation may result in small cash balances [3]; ensure account type matching to avoid delays/tax issues [2].
Opportunities: Fidelity’s fee-friendly transfer policy makes switching from M1 Finance low-cost for Roth IRA holders [6,1]

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