Ever stared at your ETRADE portfolio, a little overwhelmed by the sheer number of accounts you've accumulated over the years? Perhaps you have an old brokerage account, a recent IRA rollover, and maybe even a joint account – all under the ETRADE umbrella. If you've found yourself wishing for a more streamlined financial overview, you're not alone! Combining your E*TRADE accounts can simplify your financial life, making it easier to track your investments, manage your cash, and generally feel more in control.
So, are you ready to simplify your financial landscape and bring all your E*TRADE holdings under one unified view? Let's dive in!
Navigating the Path to a Consolidated E*TRADE Portfolio
While "combining" two accounts might sound like a single, straightforward action, it often involves a process of transferring assets from one account into another existing account. E*TRADE, now part of Morgan Stanley, offers various ways to move funds and assets, but the exact steps and feasibility depend heavily on the type of accounts you're looking to consolidate.
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| How To Combine Two Etrade Accounts |
Understanding the "Why" Before the "How"
Before we jump into the steps, consider why you want to combine your accounts. Is it for:
Simpler tracking and reporting?
Easier asset allocation management?
Potentially lower fees (though E*TRADE generally has low fees for online trades)?
Consolidating tax documents?
Understanding your motivation will help you determine the best approach.
Step 1: Assess Your E*TRADE Accounts – What Are You Working With?
The first and most crucial step is to understand the specific types of E*TRADE accounts you currently hold. This is because not all account types can be directly "combined" into one another. For example, you cannot merge a Roth IRA into a Traditional IRA without specific rollover rules applying, nor can you combine a personal brokerage account with a business account.
Here's what you need to identify for each account you wish to combine:
Account Type: Is it a:
Individual Brokerage Account?
Joint Brokerage Account?
Traditional IRA?
Roth IRA?
Rollover IRA?
SEP IRA or SIMPLE IRA?
Custodial Account (e.g., UGMA/UTMA)?
Bank Account (checking/savings) with Morgan Stanley Private Bank (formerly ETRADE Bank)?*
Account Ownership: Is the ownership identical for both accounts? For example, two individual accounts under the same Social Security Number are much easier to consolidate than an individual account and a joint account with a different co-owner.
Assets Held: What kind of investments are in each account (stocks, ETFs, mutual funds, bonds, cash)?
Pro Tip: Log in to your E*TRADE account and go to your "Complete View" page or account statements. This will clearly list all your accounts and their types.
Step 2: Determine Your "Destination" Account
QuickTip: Don’t ignore the small print.
Once you know what you have, decide which account will be your primary or "destination" account – the one into which you want to transfer assets from your other E*TRADE account(s).
Considerations for your destination account:
Account Type Compatibility: The destination account must be of a compatible type. For instance, if you're consolidating multiple IRAs, you'll likely want to choose one IRA to transfer the others into (e.g., rolling a Traditional IRA into another Traditional IRA).
Long-Term Goals: Which account type best aligns with your long-term investment strategy and tax planning?
Existing Features: Does the destination account already have features you value, such as margin capabilities (if applicable and desired)?
Step 3: Initiating the Transfer Process within E*TRADE
This is where the actual "combining" starts. For moving assets between existing ETRADE accounts* under the same ownership, the process is usually initiated through an "internal transfer."
Sub-heading: Option A: Electronic Internal Transfers (Primarily for Cash & Securities of the Same Account Type)
For simple transfers of cash or securities between ETRADE accounts with identical ownership and compatible types (e.g., individual brokerage to individual brokerage, or IRA to IRA of the same type), you can often do this online.
Log In to Your E*TRADE Account: Access etrade.com with your User ID and password.
Navigate to "Transfers" or "Move Money": Look for a section often labeled "Transfer" or "Move Money" within your account dashboard.
Select "Internal Transfer" or "Transfer Between My E*TRADE Accounts": This option is specifically for moving assets within E*TRADE.
Choose "From" and "To" Accounts: Select the account you wish to transfer assets from and the designated destination account.
Specify Assets to Transfer:
Cash: Enter the amount of cash you want to move.
Securities: You'll typically have the option to transfer all securities or select specific holdings. Be precise here!
Review and Confirm: Carefully review all the details of your transfer request. Ensure the correct accounts are selected and the assets/amounts are accurate.
Submit Request: Once confirmed, submit your transfer request. You should receive a confirmation message and potentially an email.
Timeframe: Electronic internal transfers, especially for cash, are often processed quickly, sometimes even instantly or within a few business days for securities.
Sub-heading: Option B: Full Account Transfers (ACATs) – If You're Moving an Entire E*TRADE Account into Another
While ETRADE's internal transfer system handles many scenarios, if you intend to close one ETRADE account by moving all its contents into another existing E*TRADE account (and the account types are compatible), this might also be handled internally. However, if there are complexities (e.g., specific types of restricted securities, or if the process isn't readily available online), it might effectively become an "ACAT-like" internal process or require direct assistance.
Important Note: While "ACAT" (Automated Customer Account Transfer Service) typically refers to transfers between different financial institutions, E*TRADE's internal systems handle similar full account transfers within their own ecosystem. The general principles apply: the receiving account initiates the pull.
Contact E*TRADE Customer Service: For a full account transfer or complex scenarios, it's highly recommended to contact E*TRADE's customer service directly. They can guide you through the specific forms and procedures required.
Phone: 800-387-2331 (General Customer Service)
Chat: Available on their website.
Request an Account Transfer Form (if necessary): For certain transfers, especially those involving IRAs or other retirement accounts, you might need to complete a specific internal transfer or rollover form.
Provide Necessary Information: You'll need the account numbers for both the "from" and "to" accounts, along with details about the assets to be transferred.
Sign and Submit: Follow the instructions for signing and submitting the form (often electronically or via secure upload).
Monitor the Transfer: E*TRADE will process the request. You can typically monitor the status of your transfer online.
Timeframe: Full account transfers can take longer, potentially 10 business days or more, as internal processing and asset reconciliation occur.
Tip: Compare what you read here with other sources.
Sub-heading: Option C: Rollovers for Retirement Accounts
If you're combining retirement accounts (e.g., a 401(k) from a previous employer into an ETRADE IRA, or one ETRADE IRA into another ETRADE IRA), the term is "rollover."
Open the Target IRA (if not already existing): If you're rolling funds into a new IRA at E*TRADE, you'll need to open that first.
Initiate the Rollover Request: This is often done from the receiving IRA account.
Direct Rollover (from external 401k/IRA): You instruct your old plan administrator to send funds directly to your E*TRADE IRA.
Indirect Rollover (from external 401k/IRA): You receive a check from your old plan, and you have 60 days to deposit it into your E*TRADE IRA. (Be careful with this option due to tax implications if not done correctly!)
Internal IRA-to-IRA Transfer: If moving between two E*TRADE IRAs, this is usually an internal transfer as described in Option A or B, but labeled as a "rollover" on the backend for tax purposes.
Complete Necessary Forms: E*TRADE will provide the appropriate rollover forms. Be very careful to select the correct type of rollover (e.g., Traditional to Traditional, Roth to Roth, or Traditional to Roth conversion if that's your goal).
Tax Considerations: Always consult with a tax advisor before initiating any retirement account rollovers, especially if you're considering a Roth conversion, as there can be significant tax implications.
Timeframe: Rollovers can vary widely, from a few business days for internal transfers to several weeks for rollovers from external institutions.
Step 4: Confirming the Consolidation
Once the transfer process is complete, it's essential to verify everything has gone as planned.
Check Your Destination Account: Log in to your E*TRADE account and navigate to your chosen destination account. Confirm that all the expected cash and securities have arrived.
Verify Account Balances: Ensure the balances reflect the combined assets accurately.
Review Transaction History: Check the transaction history for both the source and destination accounts to see the completed transfer.
Confirm Account Closure (if applicable): If you intended to close the source account, ensure its status reflects "closed" or that it no longer appears active.
Download Statements: For your records, consider downloading statements from both accounts before and after the transfer.
Step 5: Update Beneficiaries and Account Features
After combining accounts, it's a good practice to review and update important details:
Beneficiaries: Ensure the beneficiary designations on your consolidated account are up-to-date and reflect your current wishes. This is especially critical for IRAs and other retirement accounts.
Account Features: If the combined account now holds a wider range of assets or you have different goals, you might want to review and adjust account features like:
Dividend Reinvestment Program (DRIP)
Cash sweep options
Trading permissions (e.g., options, futures if applicable)
Tax Implications: While consolidating accounts within the same ownership type generally doesn't trigger immediate tax events (e.g., moving shares from one individual brokerage to another), always be aware of potential tax implications for retirement account rollovers or conversions.
Important Considerations and Potential Hurdles:
Matching Registrations: The most common hurdle is non-matching account registrations. You generally cannot directly combine an individual account with a joint account, or an account held in a trust with an individual account, without potentially creating a new account or a complex re-registration process. In such cases, you might consider distributing assets from one account and then funding the other, which could have tax consequences.
Account Type Differences: As mentioned, mixing different types of retirement accounts or mixing retirement with non-retirement accounts is not straightforward and has specific IRS rules.
Assets Not Transferable: Occasionally, certain less common investments or products might not be easily transferable or may have specific transfer requirements.
Outstanding Orders or Loans: Ensure there are no outstanding orders (buy/sell) or margin loans in the account you wish to transfer from, as this can delay or complicate the process.
Fees: While E*TRADE generally doesn't charge for internal transfers, always double-check their current fee schedule or ask customer service to confirm.
Morgan Stanley Transition: ETRADE is now part of Morgan Stanley. While the ETRADE platform remains, the underlying clearing and custody services are provided by Morgan Stanley Smith Barney LLC. This transition has been largely seamless for users, but it's good to be aware of if you encounter any legacy terms or forms.
By following these steps and keeping the key considerations in mind, you can effectively combine your E*TRADE accounts, leading to a more organized and manageable financial life!
10 Related FAQ Questions
Here are 10 frequently asked questions about combining E*TRADE accounts, with quick answers:
Tip: Revisit this page tomorrow to reinforce memory.
How to: Determine if my E*TRADE accounts can be combined?
Quick Answer: Check if the account types are compatible (e.g., brokerage to brokerage, IRA to IRA of the same type) and if the ownership (registration) is identical for both accounts. Contact E*TRADE customer service if unsure.
How to: Transfer cash between my E*TRADE accounts?
Quick Answer: Log in to E*TRADE, go to "Move Money" or "Transfers," select "Internal Transfer," choose your "From" and "To" accounts, enter the cash amount, and confirm.
How to: Move securities from one E*TRADE brokerage account to another?
Quick Answer: Use the "Internal Transfer" option under "Move Money" or "Transfers" and select "Transfer Shares" or similar, then specify the securities you wish to move.
How to: Combine two E*TRADE IRA accounts?
Quick Answer: You can typically perform an internal IRA-to-IRA transfer by initiating a request online or by contacting E*TRADE customer service and completing the necessary rollover/transfer forms. Ensure the IRA types (Traditional, Roth) are compatible or understand the tax implications of a conversion.
How to: Combine a Traditional IRA and a Roth IRA at E*TRADE?
Quick Answer: This is a "Roth Conversion." You can transfer funds from a Traditional IRA to a Roth IRA, but the pre-tax portion of the Traditional IRA will be taxable income in the year of conversion. Consult a tax advisor.
QuickTip: Repetition reinforces learning.
How to: Handle different ownership types (e.g., individual and joint) when combining E*TRADE accounts?
Quick Answer: You generally cannot directly combine accounts with different ownership registrations. You might need to liquidate assets from one account, withdraw the funds, and then deposit them into the other, which could trigger capital gains/losses. Contact E*TRADE for specific guidance.
How to: Check the status of an E*TRADE account transfer?
Quick Answer: Log in to your E*TRADE account and look for a "Transfer Activity" or "Pending Transfers" section within the "Move Money" or "Accounts" tab.
How to: Close an E*TRADE account after transferring its assets?
Quick Answer: Once all assets are successfully transferred out, you can typically contact E*TRADE customer service by phone or secure message to formally request the closure of the empty account.
How to: Avoid tax implications when combining E*TRADE accounts?
Quick Answer: Transfers between identical account types with identical ownership (e.g., individual brokerage to individual brokerage) generally don't trigger taxes. However, any movement involving retirement accounts (especially conversions) can have tax consequences. Always consult a qualified tax advisor.
How to: Get direct assistance from E*TRADE for account consolidation?
Quick Answer: The best way to get personalized assistance is to call E*TRADE Customer Service at 800-387-2331 or utilize their online chat feature. They can guide you through complex scenarios and provide specific forms.
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