Your Guide to Seamlessly Closing Your Merrill Edge Account
Thinking about closing your Merrill Edge account? Whether you're consolidating your finances, moving to a new brokerage, or simply stepping away from investing for a while, the process can seem a bit daunting. But don't worry, we're here to guide you through it, step by step, to ensure a smooth and hassle-free experience.
So, are you ready to take control of your investment journey and make this transition as easy as possible? Let's dive in!
Step 1: Pre-Closure Preparations – Getting Your Ducks in a Row
Before you even think about hitting the "close account" button (which, spoiler alert, doesn't actually exist in a direct online form for Merrill Edge), there are some crucial preparations you need to make. This stage is vital for avoiding delays and unexpected issues.
Sub-heading 1.1: Zeroing Out Your Account Balance
The Golden Rule: Your Merrill Edge account must have a zero balance before it can be officially closed. This means no cash, no securities, and certainly no negative balances.
Selling Securities: If you hold stocks, ETFs, mutual funds, or other investments, you'll need to sell them to convert them into cash. Be mindful of potential capital gains or losses and their tax implications. Consider consulting a tax advisor if you have significant gains or losses.
Transferring Cash: Once your investments are liquidated, you'll need to transfer the resulting cash out of your Merrill Edge account. This can typically be done via:
Electronic Funds Transfer (EFT): Linking your Merrill Edge account to an external bank account for quick transfers. This can take a few business days.
Wire Transfer: A faster, but often fee-based, option for moving larger sums.
Check: You might be able to request a check for the remaining balance.
Addressing Negative Balances: If, for some reason, your account has a negative balance, you'll need to deposit funds to cover it before proceeding. Contact Merrill Edge customer service immediately if you find yourself in this situation.
Sub-heading 1.2: Stopping All Activity and Future Transactions
Cancel Recurring Payments: If you have any recurring investments, bill payments, or other automated transactions linked to your Merrill Edge account, cancel them immediately. Contact the respective businesses to set up alternative payment methods.
No New Transactions: Refrain from making any new trades or deposits once you've decided to close the account. Ensure all pending transactions have cleared before moving forward.
Direct Deposits: If your Merrill Edge account receives any direct deposits (e.g., from an employer), reroute them to another account. Merrill Edge will not accept direct deposits into a closed account.
Destroy Associated Items: Safely destroy any debit cards and uncashed checks linked to your Merrill Edge account to prevent unauthorized use.
Sub-heading 1.3: Downloading Important Documents
Statements and Tax Forms: Once your account is closed, you might lose easy access to your past statements and tax documents. Download and save all relevant statements, trade confirmations, and tax forms (like 1099s) for your records. This is crucial for tax season and general financial planning.
Step 2: Choosing Your Closure Method – How to Initiate the Request
Unlike some simple bank accounts, closing a Merrill Edge brokerage account often requires direct interaction. There are generally two primary ways to initiate the closure process:
Sub-heading 2.1: The Direct Approach – Calling Customer Service
The Most Common Method: For Merrill Edge accounts, calling their customer service is typically the most straightforward and recommended way to initiate the closure. This allows you to speak directly with a representative who can guide you through the specific requirements for your account type.
Merrill Edge Customer Service Number: You can reach Merrill Edge Self-Directed Investing at 1-877-653-4732 or their general contact number at 1-888-637-3343.
Be Prepared: When you call, have your account number readily available. They might also ask for personal identification details to verify your identity.
Discuss Options: The representative can confirm the exact steps needed, any outstanding issues, and the timeline for closure. They might also try to understand why you're closing your account and offer alternatives, but be firm in your decision if you're set on closing.
Sub-heading 2.2: The Alternative – In-Person Visit (if applicable)
Bank of America Financial Centers: Since Merrill Edge is part of Bank of America, you might be able to visit a Bank of America financial center to discuss your account closure. However, it's generally recommended to call Merrill Edge directly first, as not all Bank of America staff may be fully equipped to handle complex brokerage account closures. They can often direct you to the right channel if an in-person visit is suitable.
Step 3: Understanding Transfer Options (if applicable)
Often, closing a Merrill Edge account isn't just about ending one chapter, but starting another. If you're moving your investments to a new brokerage, a transfer might be a better option than outright closure and liquidation.
Sub-heading 3.1: Account Transfer (ACAT)
Transferring "In Kind": An Automated Customer Account Transfer (ACAT) allows you to transfer your securities as they are (in kind) from Merrill Edge to another brokerage firm. This can avoid the need to sell everything and then repurchase, potentially saving you from immediate tax consequences (though you'll still have your original cost basis) and market exposure during the transition.
Initiating the ACAT: The receiving brokerage firm typically initiates the ACAT. You'll need to open an account with the new firm and then provide them with your Merrill Edge account details. They will then send a transfer request to Merrill Edge.
Potential Fees: Merrill Edge may charge a full account transfer fee for ACATs (e.g., around $49.95 for Traditional IRAs, though this can vary). Be sure to inquire about any transfer fees from both Merrill Edge and your new brokerage.
Partial Transfers: You can also choose to transfer only a portion of your assets or specific securities.
Sub-heading 3.2: Rollovers (for Retirement Accounts)
Maintaining Tax-Deferred Status: If you're closing a retirement account (like an IRA or 401(k) rollover), a direct rollover to another qualified retirement account is crucial to maintain its tax-deferred status and avoid penalties.
Working with the New Custodian: Similar to an ACAT, your new retirement account custodian will typically facilitate the direct rollover from Merrill Edge.
Step 4: The Waiting Game & Confirmation
Once you've initiated the closure process, there will be a waiting period while Merrill Edge processes your request.
Sub-heading 4.1: Processing Timeframes
Varying Durations: The time it takes to fully close an account can vary depending on the complexity of your holdings, whether you're transferring assets, and Merrill Edge's internal processing times. It could range from a few business days to several weeks.
Transfers Often Take Longer: Account transfers (ACATs) generally take longer than simple cash withdrawals and closures, often 8 or more business days.
Sub-heading 4.2: Receiving Confirmation
Email Notification: Merrill Edge typically sends an email notification once your account has been officially closed, provided they have your current email address on file.
Final Statement: You will also receive a final statement in the mail. Review this carefully to ensure there are no unexpected transactions or lingering balances. If anything looks amiss, contact Merrill Edge immediately.
Step 5: Post-Closure Checks – Ensuring Everything is Finalized
Even after receiving confirmation, it's a good idea to perform a few final checks.
Attempt to Log In: Try to log into your Merrill Edge online account. If it's truly closed, you should no longer be able to access it.
Check Linked Accounts: If you had any external accounts linked to Merrill Edge for transfers, ensure those links are severed.
Monitor Statements: Keep an eye on your new bank or brokerage statements to confirm all transferred funds or assets have arrived correctly.
Frequently Asked Questions (FAQs)
Here are 10 common questions about closing a Merrill Edge account:
How to prepare my Merrill Edge account for closure?
To prepare your Merrill Edge account for closure, you must zero out your balance by selling all securities and transferring out any cash. Also, cancel all recurring transactions and direct deposits linked to the account, and download all necessary statements and tax documents for your records.
How to contact Merrill Edge customer service to close my account?
You can contact Merrill Edge customer service to close your account by calling their Self-Directed Investing line at 1-877-653-4732 or their general support line at 1-888-637-3343.
How to transfer my Merrill Edge account to another brokerage?
To transfer your Merrill Edge account to another brokerage, open an account with the new firm and initiate an ACAT (Automated Customer Account Transfer) with them. They will then coordinate the transfer of your assets from Merrill Edge.
How to roll over my Merrill Edge IRA to another retirement account?
To roll over your Merrill Edge IRA, contact the new custodian of your retirement account (e.g., another brokerage or bank). They will typically facilitate a direct rollover, ensuring the tax-deferred status of your funds is maintained.
How to withdraw cash from my Merrill Edge account before closing?
You can withdraw cash from your Merrill Edge account via electronic funds transfer (EFT) to a linked bank account, wire transfer, or by requesting a check for the remaining balance after selling all your securities.
How to find out if there are any fees for closing my Merrill Edge account?
You can find out if there are any fees for closing your Merrill Edge account by contacting Merrill Edge customer service directly. They will inform you of any applicable full account transfer fees or other charges.
How to ensure all my investments are sold before closing Merrill Edge?
To ensure all your investments are sold, log into your Merrill Edge account online and verify that all your positions show a zero balance and that any pending trades have settled. If unsure, contact customer service.
How to get my final statements after closing my Merrill Edge account?
After closing your Merrill Edge account, Merrill Edge will send you a final statement in the mail. It's also highly recommended to download all statements and tax documents before initiating the closure.
How to know if my Merrill Edge account is officially closed?
You will typically receive an email notification from Merrill Edge confirming the account closure. You can also attempt to log into your online account; if it's closed, you won't be able to access it.
How to handle potential tax implications when closing my Merrill Edge account?
When closing a Merrill Edge account, especially if you're liquidating investments, you may incur capital gains or losses, which have tax implications. It is highly advisable to consult with a qualified tax professional to understand and plan for any potential tax consequences.