Account Close Out Authorization
To close your Fidelity Roth IRA, complete the "Authorization to Close Account" form, which is available for downloading on Fidelity's website. Indicate whether you want money withheld for taxes. You can choose to receive a check or have the funds in your Roth account sent via electronic fund transfer to another account. There's a $15 fee for an electronic funds transfer. Mail the authorization to the address on the form. Fidelity may also charge a $50 account close out fee.
Qualified versus Taxable Distributions
Unless you deposit the funds into another Roth IRA within 60 days of taking them out of the Fidelity account, it is considered a distribution by the Internal Revenue Service. If the distribution is qualified, the money is tax-free. Distributions are qualified when a Roth is at least 5 calendar years old and you meet one of the following conditions: you are 59 1/2 years old, you are permanently disabled, you have inherited the Roth IRA or you use the money (up to $10,000), for a first home. If the distribution isn't qualified, investment earnings are taxable. You may also have to pay a 10 percent early distribution penalty.