Brokerage Account Transfer (ACATS)

[Tranquility Base]

This is for anyone who has some recent experience with a brokerage account transfer.


I received an email from Schwab stating that my first account transfer request has been successfully completed. It was initiated on Monday and I was originally told that it would be completed seven days later. So that part is good. When I logged into my Schwab account, however, the cost basis information wasn't posted yet. It isn't just blank; there is some kind of warning/notification icon posted instead. Also, when I logged into my account at the prior brokerage firm, the assets still appear in my account as if nothing had been done at all.


I am guessing/assuming that Schwab's computers have some remaining things to be done before the transfer is actually completed and that the computers, at both ends of the transfer, still need some time to digest and then burp. Is that correct?

 

[OldShooter]

Why don't you ask Schwab?

 

[jollystomper]

For what it is worth, I just completed a brokerage transfer from TD Ameritrade to Fidelity. I submitted the request on 3/2 and it was completed on 3/8. In the notice they sent confirming the request was complete, they said cost basis information might take as much as 15 more days to show up in the new account. On 3/15 it arrived.

In addition, I had some dividends paid between 3/9 and 3/15. They did not show up in the new account on the expected days. I contacted Fidelity on 3/13. Their response:

As part of a full account transfer request, any eligible residual assets, such as your dividends, will automatically be swept from your account for six months following the original transfer request. The timing of the delivery of residual assets depends on the sending firm. Most firms will sweep accounts on a weekly basis.

If you see assets in the old account that do not appear to be moving over in one to two weeks, please contact us so we can submit a refreshed transfer request for eligible assets.

In sum, information and funds might still be directed to the old account for several months, but will eventually be swept to the new account. As it happens the dividend money was delivered to the new account today.

So things may still take a bit after the transfer, but it will work out. At least you can still access your old account - TD Ameritrade locked me out of mine, at least online access (I can call to get information, but that has not cased any issues for me so far).

 

[PaunchyPirate]

Starting at the end of January, I transferred all my accounts from Vanguard to Schwab. Each account came across in one week or less. I received email notifications for each completion at that point.

However, the accounts were not FULLY pulled across and set up at that time. Due to timing, there were some dividend payments that came to the old broker still. Those then pulled over a few days after they were paid. Any partial shares of ETFs needed to be sold at the old brokerage since they didn't transfer via ACATS. So the money from those partial shares came over a few days later too. My account transfers each took at least 2 different transactions over a period of a couple days. One of them took 3 transaction if I recall.

And the cost basis data did not come over until several days later.

So, bottom line, even after Schwab notifies you that transfer is complete, it may be several days to a week or so before it is truly complete. This did not bother me since I had done transfers before and experienced similar. Also, my contact at Schwab was very good at explaining these things would happen also.

My money generally disappeared from Vanguard the day after it showed up at Schwab. Vanguard then closed the accounts about 1 week after all dividends were paid and account balances were zero and notified me via US mail.

 

[Tranquility Base]

I did call Schwab this morning, per OldShooter's suggestion. But the number I had to call was not "open" at the time I posted.



I was told much the same as the other posters have mentioned. Basically the assets have been transferred to Schwab but the transferor, Vanguard in this case, has not sent the cost basis information yet. I was told that the transferor has 15 days to send the cost basis information and I was given another phone number to call if the cost basis information still has not been posted in 15 days. They didn't mention the bit about dividends and such received at the transferring account. But someone at another prior brokerage did mention to me that dividends and such received at a prior brokerage for a period of time after the transfer would be automatically transferred over to Schwab. So all seems to be good so far but I will continue to keep my fingers crossed for an uneventful transfer. It's just that the transfer of assets seems to be separate from the transfer of cost basis information. Thanks for the great information!

 

[PaunchyPirate]

I did call Schwab this morning, per OldShooter's suggestion. But the number I had to call was not "open" at the time I posted.



I was told much the same as the other posters have mentioned. Basically the assets have been transferred to Schwab but the transferor, Vanguard in this case, has not sent the cost basis information yet. I was told that the transferor has 15 days to send the cost basis information and I was given another phone number to call if the cost basis information still has not been posted in 15 days. They didn't mention the bit about dividends and such received at the transferring account. But someone at another prior brokerage did mention to me that dividends and such received at a prior brokerage for a period of time after the transfer would be automatically transferred over to Schwab. So all seems to be good so far but I will continue to keep my fingers crossed for an uneventful transfer. It's just that the transfer of assets seems to be separate from the transfer of cost basis information. Thanks for the great information!

It sounds like things are proceeding normally for you. As for the dividends, because March is a quarterly dividend payment month for many mutual funds, you may (or may not) find some of them go to Vanguard first and then have to be pulled over via ACATS. It will likely depend on your holdings. I believe the way it works is that the brokerage that holds the dividends at the time of the "Date of Record" for that dividend will receive them. If that's your old broker, they will have to send them to your new broker after getting them. If the investment is moved over to the new broker by "Date of Record" then the dividend will be directed to the new broker. I'm confident you will get them either way, but it can't hurt to stay on top of them. Mine transferred over quickly (within a few days), but I believe it can sometimes take longer. Mine were just for a couple bond funds that paid out at the end of January. Any individual stocks you may hold that have dividends in this timeframe are also subject to the same situation.

I found it interesting that on the Schwab Account Transfer website page, I could follow the Status of the entire set of transactions related to the transfer. And it automatically generated followup transfers a couple times for dates in the future. Basically, it looked they would do an ACATS sweep every 3 days or so until somehow they knew they were all done.

 

[Tranquility Base]

Things are proceeding normally so far; that's good and I am grateful for that. I am just chomping at the bit, however, to get started on cleaning up some things, getting better organized, etc. In the meantime, to make good use of the waiting time (the largest number of transfers were just initiated 2 days ago), I am trying to spend time every day just snooping around on Schwab's website to learn how it is organized and get a feel for all the whistles and bells. It's like having a new car, whether it is literally brand new or just new to you, there are lots of features and it takes awhile to learn them. Some of them are harder to learn until you actually have your accounts transferred over.

 

[pb4uski]

This is for anyone who has some recent experience with a brokerage account transfer.


I received an email from Schwab stating that my first account transfer request has been successfully completed. It was initiated on Monday and I was originally told that it would be completed seven days later. So that part is good. When I logged into my Schwab account, however, the cost basis information wasn't posted yet. It isn't just blank; there is some kind of warning/notification icon posted instead. Also, when I logged into my account at the prior brokerage firm, the assets still appear in my account as if nothing had been done at all.


I am guessing/assuming that Schwab's computers have some remaining things to be done before the transfer is actually completed and that the computers, at both ends of the transfer, still need some time to digest and then burp. Is that correct?

Yes, in my experience it takes a little while for the cost basis information to be updated.

 

[Texas Proud]

Glad to read this as I am starting the process of moving some accounts from Vanguard to Schwab...


But, I did move my 401(k) to Schwab and it took awhile as I was doing NUA on my company shares.. that was a month ago... still have no info on cost basis..

 

[Tranquility Base]

Glad to read this as I am starting the process of moving some accounts from Vanguard to Schwab...


But, I did move my 401(k) to Schwab and it took awhile as I was doing NUA on my company shares.. that was a month ago... still have no info on cost basis..

The person I spoke to at Schwab today told me that the transfer of cost basis information could take up to 15 days. I'm not sure if the 15 days is measured from the initiation of the transfer or the completion of the transfer of the assets (not including the cost basis information). He told me if after 15 days the cost basis information wasn't transferred, to call Schwab at this number: Cost Basis/Corp Reorg/Proxy/Tax Reporting: 800-323-4332. Schwab will then ask the transferring brokerage again to send the cost basis information to Schwab. I am nowhere near the 15 days yet so I haven't called anyone other than this person today at the asset transfer number. But I have my fingers and toes crossed.