Can you transfer funds from one company Roth to another company Roth without penalty?

[Guest smrk89]

I have a load Roth with Fidelity and want to open a no-load Roth with Vanguard. Can I transfer the funds from the Fidelity Roth to the Vanguard Roth without penalty (early withdrawal or others)? Is yes, how is this done and how is it recorded to the IRS, if necessary?

[Appleby]

The change of custodian can be done as a distribution and rollover or as a trustee-to-trustee transfer. The preferred method is a trustee-to-trustee transfer.

For a distribution and rollover, the assets are made payable to you and you are responsible for delivering the assets to your new IRA custodian for deposit to your IRA within 60-days after receiving assets…This option is not available for some mutual funds as they may not be available in certificate from---which means you may have to liquidate the funds into cash. A Rollover is reported to the IRS as a distribution (Form 1099-R) and a rollover contribution ( Form 5498). The transaction is non-taxable.

In a trustee-to-trustee transfer, the assets are delivered directly between the two custodians... to effect the transfer, you would establish your new Roth IRA with your new custodian and complete an account transfer request form (Automated Customer Account Transfer (ACAT) form). Your new custodian will submit a request to your old custodian for the assets. The transfer will not be reported to the IRS.

Check with your current custodian regarding any termination/redemption fees