Your Ultimate Guide: How to Get All Your Money Out of E*TRADE
So, you've decided to move on from E*TRADE? Whether you're consolidating your finances, switching brokers, or simply need access to your funds, getting all your money out requires a systematic approach. It's not just about hitting a "withdraw all" button; it involves understanding different asset types, transfer methods, potential fees, and even tax implications. But don't worry, we're here to guide you every step of the way!
Let's Get Started: A Crucial First Step!
Before we dive into the nitty-gritty, let's establish one thing: do you need all your money out because you're closing your E*TRADE account entirely, or simply want to transfer funds out while keeping the account open? This distinction is critical, as the process for a full account closure is more involved than a simple withdrawal. Throughout this guide, we'll cover both scenarios, ensuring you have all the information you need.
Ready to begin? Let's get your money moving!
Step 1: Assess Your E*TRADE Account Holdings
Before initiating any transfers, you need a clear picture of what you actually hold in your E*TRADE account. This isn't just about the cash balance; it includes any investments you might have.
Sub-heading: Understanding Your Asset Types
Cash: This is the easiest to withdraw. It's the uninvested money sitting in your brokerage or bank account within E*TRADE.
Stocks, ETFs, Mutual Funds: These are investment securities. You have two main options:
Sell them: Convert them to cash within your E*TRADE account. This is usually the quicker way to get liquid funds.
Transfer them "in-kind": Move the actual securities to another brokerage account without selling them. This avoids potential capital gains taxes at the time of transfer, but your new broker must be able to hold those specific securities.
Options and Futures: These are complex derivatives. If you hold these, you'll generally need to close out your positions (sell or exercise them) before withdrawing the resulting cash. E*TRADE does not typically permit physical delivery of commodities or digital assets for futures.
Retirement Accounts (IRAs, 401(k) rollovers): Withdrawing from these accounts can have significant tax implications and penalties if done incorrectly. Often, a direct rollover to another qualified retirement account is the most tax-efficient method.
Bank Accounts (E*TRADE Premium Savings, Max-Rate Checking, Checking, CDs): These function similarly to regular bank accounts, allowing for easier cash withdrawals via ACH or wire.
Sub-heading: Checking Your Balance and Pending Activity
Log in to your E*TRADE account: Go to etrade.com and enter your credentials.
Navigate to "Accounts" or "Complete View": This section will give you an overview of all your accounts and their balances.
Check for pending transactions: Ensure there are no outstanding orders (buy/sell), un-cleared deposits, or any other pending activities that might delay your withdrawal. Any pending activity must settle before funds can be fully withdrawn.
Step 2: Choose Your Withdrawal Method(s)
E*TRADE offers several ways to get your money out, each with its own processing time, limits, and potential fees.
Sub-heading: Electronic Funds Transfer (ACH)
This is the most common and often the most convenient method for withdrawing cash to a linked external bank account.
How it works: Money is electronically transferred directly from your E*TRADE account to your designated bank account.
Linking an external bank account: If you haven't already, you'll need to link your external bank account to your E*TRADE account. This typically involves:
Navigating to "Transfer Money" or "Transfer & Pay."
Selecting "Add a Bank Account."
Entering your bank's routing number and your account number.
E*TRADE sending two small test deposits (micro-deposits) to your bank account within 2-3 business days.
You then verify these amounts back on the E*TRADE platform to confirm the link.
Processing Time: ACH transfers generally take 1-4 business days to complete.
Limits: There are aggregate transfer limits, often around $100,000.00 per account for both deposits and withdrawals. This limit includes all ACH transactions.
Fees: Typically, ACH transfers initiated from E*TRADE are free.
Sub-heading: Wire Transfer
For larger sums or faster access to funds, a wire transfer is an option, though it usually comes with a fee.
How it works: A direct bank-to-bank transfer, offering near-immediate availability of funds once processed.
Initiating a wire transfer:
Log in to your E*TRADE account.
Go to "Transfer Money" or "Transfer & Pay."
Select the "Wire Transfer" option.
You'll need the receiving bank's name, address, routing number (ABA), and your account number and name at that bank.
For international wires, you'll also need the SWIFT/BIC code.
Processing Time: Wire transfers typically complete within 1 business day for domestic transfers. International wires may take longer.
Limits: Wire transfers generally have higher limits than ACH, but check with E*TRADE for specifics.
Fees: E*TRADE generally charges a fee for outgoing wire transfers. Check their fee schedule for the current amount (e.g., $25 for domestic wires).
Sub-heading: Requesting a Check
If you prefer a physical check, E*TRADE can mail one to your address of record.
How it works: E*TRADE will issue a physical check drawn on your account and mail it to you.
Initiating a check request:
Log in to your E*TRADE account.
Navigate to "Transfer Money" and look for an option like "Request a Check" or "Withdraw Funds by Check."
Enter the amount you wish to withdraw and confirm your mailing address.
Processing Time: This method is the slowest, as it involves mail delivery. Expect it to take several business days to a week or more to receive the check.
Limits: There may be limits on the amount that can be requested via check.
Fees: Check requests might incur a small fee, or be free, depending on E*TRADE's current policy.
Sub-heading: Full Account Transfer (ACATS)
If you're moving your entire investment portfolio to another brokerage, an ACATS (Automated Customer Account Transfer Service) transfer is often the most efficient way to do it.
How it works: This allows you to transfer your entire account, including both cash and securities (stocks, ETFs, mutual funds, etc.), from E*TRADE to another brokerage firm. The receiving firm initiates the transfer.
Initiating an ACATS transfer:
Open an account with your new brokerage firm. Make sure the account registration (e.g., individual, joint, IRA) matches exactly between E*TRADE and the new firm.
Initiate the transfer at the new brokerage firm. They will have a form for "Transfer an Account" or "ACATS Transfer."
You will need your ETRADE account number and a recent statement from ETRADE.
Processing Time: ACATS transfers typically take 7-10 business days once initiated by the receiving firm. Paper/mail requests can take 3-6 weeks.
Limits: This is designed for full account transfers.
Fees: ETRADE may charge an outgoing account transfer fee for full ACATS transfers. This fee varies and should be confirmed on ETRADE's fee schedule. Your new brokerage may sometimes reimburse this fee.
Step 3: Important Considerations Before Withdrawing All Funds
Don't rush the process! Several factors can impact your withdrawal and even have financial consequences.
Sub-heading: Selling Investments and Tax Implications
Capital Gains/Losses: If you sell investments in a taxable brokerage account, you will realize capital gains or losses. This can impact your tax liability for the current year. Consult a tax advisor before selling a large portion of your portfolio.
Settlement Period: After selling securities, the funds are not immediately available for withdrawal. There's a settlement period (typically T+2 business days for stocks and ETFs, meaning two business days after the trade date) before the cash is considered "settled" and available for transfer.
Sub-heading: Account Type Specifics
Retirement Accounts (IRAs, 401(k)s):
Direct Rollover: The safest and most tax-efficient way to move retirement funds is a direct rollover from your E*TRADE IRA to another IRA or qualified plan (like a new employer's 401(k)). The funds go directly from custodian to custodian, avoiding taxes and penalties.
Indirect Rollover (60-day rollover): You receive the funds personally, and then have 60 days to deposit them into another qualified retirement account. If you miss the deadline, the entire amount becomes taxable income and may be subject to a 10% early withdrawal penalty if you're under 59½. E*TRADE is also required to withhold 20% for federal taxes in an indirect rollover from a qualified plan, which you'd have to make up when depositing the full amount into the new account to avoid tax liability.
Early Withdrawal Penalties: If you simply withdraw funds from a retirement account before age 59½ and don't roll them over, you'll likely face income tax plus a 10% early withdrawal penalty, with some exceptions.
Joint Accounts: Ensure all account holders are aware and agree to the withdrawal, as signatures or consent from all parties may be required.
Sub-heading: Fees and Minimums
Outgoing Transfer Fees: As mentioned, E*TRADE may charge fees for wire transfers and full ACATS transfers. Factor these into your decision.
Minimum Balance Requirements: If you're only withdrawing a portion of your funds, be aware of any minimum balance requirements to keep your E*TRADE account open. If your balance falls below this, the account might be subject to closure or maintenance fees.
Sub-heading: Account Closure Checklist (If Applicable)
If your goal is to get all your money out to close the account:
Empty the account: Ensure all investments are sold and converted to cash, and all cash is withdrawn. Your balance must be zero.
Settle all pending transactions: No open orders or pending transfers.
Download statements and tax documents: Before closing, download all historical statements, trade confirmations, and tax documents (1099s, etc.). Once the account is closed, accessing these might be difficult or impossible.
Update direct deposits/withdrawals: If you have any recurring direct deposits or withdrawals linked to your E*TRADE account, update them with your new bank account information before closing.
Step 4: Execute Your Withdrawals
Now that you've planned everything, it's time to put it into action.
Sub-heading: Step-by-Step for Cash Withdrawals (ACH/Wire/Check)
Log in to E*TRADE.
Navigate to "Transfer & Pay" or "Transfer Money."
Select "Withdraw Money" or "Transfer Funds."
Choose the "From" account: This will be your E*TRADE brokerage or bank account.
Choose the "To" account/method:
For ACH: Select your previously linked external bank account. If not linked, link it first (see Step 2).
For Wire: Select "Wire Transfer" and enter the receiving bank details carefully. Double-check every digit!
For Check: Select "Request a Check" and confirm your mailing address.
Enter the withdrawal amount. Be precise.
Review all details thoroughly. This is crucial! An incorrect routing number or account number can lead to significant delays or misdirected funds.
Confirm and submit the request. You may need to enter a security code or use two-factor authentication.
Monitor the status: Keep an eye on your E*TRADE transaction history and your receiving bank account to confirm the funds arrive.
Sub-heading: Step-by-Step for Full Account Transfer (ACATS)
Ensure your new brokerage account is open and active.
Gather your E*TRADE account number and a recent statement.
Go to your new brokerage firm's website or contact their customer service.
Locate their "Transfer an Account" or "Account Transfer" section.
Fill out their ACATS transfer form. You will designate E*TRADE as the "delivering firm."
Submit the form to your new brokerage. They will initiate the process with E*TRADE.
Monitor the transfer status through your new brokerage's platform. You might also receive notifications from E*TRADE.
Step 5: Follow Up and Confirm
The final, but equally important, step is to ensure everything went as planned.
Sub-heading: Verify Fund Receipt
Check your receiving bank account: Confirm that the withdrawn funds have arrived and are available.
For ACATS transfers, check your new brokerage account: Ensure all your securities and cash have been successfully transferred and reconciled.
Sub-heading: Confirm Account Closure (If Applicable)
If you intended to close your ETRADE account, contact ETRADE customer service directly to confirm the account has been fully closed and there are no lingering balances or open issues.
They may require a written request for final closure, especially if it's a legacy account.
Conclusion: Patience and Precision are Key
Getting all your money out of ETRADE, especially if it involves investments or account closures, requires patience and meticulous attention to detail. By following these steps and understanding the various options and their implications, you can ensure a smooth and successful transfer of your funds. Remember, when in doubt, always contact ETRADE customer service for personalized assistance.
10 Related FAQ Questions
How to check my available balance on E*TRADE?
You can check your available balance by logging into your E*TRADE account and navigating to the "Accounts" or "Complete View" section, which provides an overview of all your account balances and holdings.
How to link an external bank account to E*TRADE?
To link an external bank account, log in to ETRADE, go to "Transfer Money" or "Transfer & Pay," select "Add a Bank Account," and follow the prompts to enter your bank's routing and account numbers. You'll then verify small test deposits sent by ETRADE to confirm the link.
How to initiate an ACH withdrawal from E*TRADE?
After linking your bank account, log in to ETRADE, go to "Transfer & Pay" > "Withdraw Money," select your ETRADE account as the source and your linked external bank account as the destination, enter the amount, and confirm the transaction.
How to request a wire transfer from E*TRADE?
Log in to E*TRADE, navigate to "Transfer Money" or "Transfer & Pay," choose "Wire Transfer," and provide the necessary details of the receiving bank (name, address, routing number, your account number, and name). Be aware of potential fees.
How to request a physical check from E*TRADE?
Log in to your E*TRADE account, go to "Transfer Money," and look for an option to "Request a Check." Enter the desired amount and confirm your mailing address for delivery.
How to transfer investments (stocks, ETFs) out of E*TRADE to another broker?
To transfer investments "in-kind," open an account at your new brokerage with the same registration, then initiate an ACATS transfer through the new brokerage firm using your E*TRADE account number and a recent statement.
How to roll over an E*TRADE IRA to another retirement account?
The best way is a direct rollover. Contact the administrator of your new retirement account (or new IRA custodian) and instruct them to initiate a direct rollover from your ETRADE IRA. The funds will go directly from ETRADE to the new account.
How to find my E*TRADE account number?
Your E*TRADE account number can typically be found on the "Complete View" page when you first log in, or on your account statements.
How to download my E*TRADE account statements for tax purposes?
You can usually access and download your statements and tax documents (like 1099s) from the "Documents" or "Statements" section within your E*TRADE online account. It's advisable to do this before closing your account.
How to fully close my E*TRADE account after withdrawing all funds?
Once you have successfully withdrawn all funds and cleared all positions, contact E*TRADE customer service directly to inform them of your intention to close the account. They may require a final written request.