TD Ameritrade withdrawal / transfer to a Schwab account
Susan McClay on
Ira, thank you for confirming my thoughts.
Correct re charitable contributions. The TDA transfer form (which is the same for charitable transfers and others as someone said previously) lays out the two with different explanations. The reason for the transfer needs to be explained. My guess is if they saw an individual's name, the "charitableness" of the transfer would be questioned. I've had them question a foundation with the name of "[Church Name and Denomination] Foundation," which seemed pretty clear to me!
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of ira smilovitz via bivio.com Sent: Monday, February 8, 2021 3:58 PM To: club_cafe@bivio.com Subject: Re: [club_cafe] TD Ameritrade withdrawal / transfer to a Schwab account
Susan's explanation matches my experience with various types of transfers. The only exception appears to be transfers to charities - that is the only situation where I have never seen a problem transferring between brokers whether I was on the sending side or the receiving side.
My two cents' worth. I'm not associated with a brokerage firm, but I was curious several years ago after speaking with a TDAmeritrade representative when our club transferred stocks to a withdrawing member. I think I have this right.
"ACATS" stands for Automated Customer Account Transfer Service and is a system that facilitates the transfer of securities from one account to another at a different brokerage firm.
When securities are transferred from one brokerage firm to another, the account name and tax ID number on the transferring and receiving accounts must match. Thus, an investment club can transfer its account to another brokerage firm because that information will be the same on both accounts. But, it cannot transfer securities to a withdrawing member whose account is at a different brokerage firm because the identifying information on the two accounts will not match.
The identifying information need not match on the two accounts if the transfer is within the same brokerage firm--ACATS doesn't apply. That's why the process is that the investment club transfers securities from its account at Broker A to its withdrawing member's account at Broker A (different identifying information). The withdrawing member then transfers the securities from Broker A to Broker B (matching identifying information).
This is not a particular brokerage firm's rule but, rather, is a standardized rule to which all brokers adhere.
I do not know whether TDAmeritrade and Schwab are now considered a single broker or two.
That is the form they sent over to me. Joe mentioned it is straightforward. It seems to be. I had the account rep walk me through the different lines of the form but what you said Lisa matches what their rep told me.
I think I am set.
Thanks to all who have responded. Much appreciated.
I think you should ask for the form used to donate stock to a charity. There is no difference in the transfer process for TD Ameritrade if the brokerage firm the stock is being transferred to belongs to a charity or a person. I think the form is the same as well.
This is more for my understanding of things. I finally got through to TD Ameritrade Customer Support. He is telling me that the individual initiates the request. That seems risky in that they could choose different stocks than the one we identified to transfer. I see on TD Ameritrade where I can do an "internal transfer" inside TD Ameritrade.
It seems straightforward: select which stocks I want to transfer in the "internal transfer" section. Then transfer to a different account. Put the account number and person's name in the appropriate box. Send it off.
That is not what I am getting from the TD Ameritrade rep I am talking to now.
Prior to the announced merger between TD Ameritrade and Schwab, I processed two withdrawals with stock transfers at TD Ameritrade, one was timely and correct; the other was delayed because the withdrawing partner did not want to comply with the partnership agreement that she helped draft and had signed.
Our partnership agreement requires that withdrawing partners must open (or already have) a brokerage account with the same broker that the partnership uses. We will not transfer to another brokerage and will hold the stocks to be transferred until the account is opened and any dividends belong to the club until the transfer is complete.
Consider using the secure communication area of the TDAmeritrade account. Response time has been about 24 hours and it is a lot less frustrating. Additionally, you get a record of what you were told.
I am sitting on hold with TD Ameritrade (over a 90 minute wait currently). I tried the virtual assistant and the local branch but the former was not helpful and the latter was a big circus which got me back to the national 800 number.
So while I am waiting here are my questions. I will process a full withdrawal next week. We are going to transfer appreciated stocks (two) and the remainder I will send to her in the form of a check via certified mail. Withdrawing partners does NOT have a TD Ameritrade account but she has a Schwab account. Schwab has acquired TD Ameritrade.
Has anyone here done a stock transfer from TD Ameritrade to a Schwab account?
Were there any fees involved?
Should I ask withdrawing partner to open a TD Ameritrade account to facilitate?
Any questions I should ask when I finally get a live person?
Thanks
Kevin Gillogly Treasurer Montgomery County (MD) Model Investment Club
Cynthia Gerke on
We transferred multiple stocks including withdrawing
member's shares of APPL and TGT to another brokerage firm.
It required a downloaded TD form. Club chose stocks and
quantities. We then contacted members financial advisor for
her proper account name, number and his
ID number. I believe it required Club Notorized signature.
Met members advisor who submitted competed form to her
broker.
We gave a check for small amount still owed her.
The club members avoided substantial capital gains
and elderly member's family will get stepped up cost on her
estate
There was a Notory fee and believe TD fee of $50. I charged
member for fees
She had been active member since 1997