Thinking about moving your investments to a new home? Transferring stocks to Merrill Edge can be a smart move, especially if you already bank with Bank of America or are looking for a robust platform with excellent research tools. This comprehensive guide will walk you through every step of the process, ensuring a smooth transition for your valuable assets.
Are you ready to streamline your financial life and potentially unlock new investing opportunities? Let's dive in!
Step 1: Prepare for Your Transfer – The Crucial Groundwork
Before you even think about filling out a form, preparation is key. This step ensures a hassle-free transfer and helps you avoid any unexpected roadblocks.
Sub-heading: Gather Your Information
You'll need details from both your current brokerage (the "delivering firm") and your Merrill Edge account (the "receiving firm"). Having these handy will save you time and prevent errors.
Current Brokerage Account Details:
Full Account Number: Make sure you have the exact account number for the account you wish to transfer.
Account Type: Is it a taxable brokerage account, Traditional IRA, Roth IRA, Joint account, Trust, etc.? The account type at Merrill Edge must match the account type at your current brokerage for a direct transfer.
Account Title: The name(s) on the account should match exactly. If there are any discrepancies (e.g., a maiden name vs. married name), you may need additional documentation or signatures.
Brokerage Name and Contact Information: The full legal name of your current brokerage, along with their address and phone number.
Recent Account Statement: This will serve as a valuable reference for your holdings and account details.
Merrill Edge Account Details:
Merrill Edge Account Number: Ensure you have the correct account number for the Merrill Edge account where you want your stocks transferred.
Account Type: Again, confirm this matches the account type at your current brokerage. If you don't have a Merrill Edge account yet, this is the time to open one! Make sure to open the same type of account (e.g., if you're transferring a Roth IRA, open a Roth IRA at Merrill Edge).
Account Title: Verify the name(s) on your Merrill Edge account.
Sub-heading: Understand Your Holdings
Not all assets are created equal when it comes to transfers.
Types of Securities: Most common stocks, ETFs, bonds, and mutual funds are transferable via the Automated Customer Account Transfer Service (ACATS). However, certain assets like proprietary mutual funds from your current brokerage, unlisted shares, or alternative investments might not be directly transferable to Merrill Edge.
Fractional Shares: Be aware that some brokerages do not support fractional shares. If you have them, they may be liquidated and transferred as cash.
Cost Basis Information: When you transfer investments "in kind" (meaning the actual shares, not just the cash value), your cost basis (the original purchase price) generally transfers with them. This is crucial for tax purposes. While ACATS usually handles this automatically, it's always a good idea to keep your own records of purchase dates and prices.
Sub-heading: Check for Fees and Minimums
It's important to understand any potential costs involved.
Outgoing Transfer Fees: Your current brokerage might charge a fee for transferring out your assets. These can range from $50 to $100 for a full account transfer. Merrill Edge generally charges $0 for partial account transfers, but a full account transfer may incur a $49.95 fee for general investing accounts and retirement accounts. It's wise to contact your current brokerage directly to confirm their outgoing transfer fees.
Merrill Edge Incentives: Sometimes, Merrill Edge (or other receiving brokers) may offer incentives or reimbursements for transfer fees, especially for larger account transfers. It's worth inquiring about this with a Merrill Edge representative.
Minimum Balance Requirements: Ensure that your partial transfer, if applicable, doesn't reduce your existing account's balance below any minimum requirements, as this could lead to issues or additional fees from your current brokerage.
Sub-heading: Resolve Any Outstanding Issues
Any pending transactions, margin calls, or outstanding fees with your current brokerage could delay or even halt your transfer. Clear these up before initiating the transfer.
Step 2: Initiate the Transfer – Making the Move
Once you've done your homework, it's time to tell Merrill Edge you're ready to move!
Sub-heading: The ACATS Process (Automated Customer Account Transfer Service)
The vast majority of brokerage account transfers in the U.S. happen through ACATS. This automated system makes the process significantly faster and less prone to errors than manual transfers. Merrill Edge, as a major brokerage, utilizes ACATS.
You Initiate with Merrill Edge: The good news is, you generally initiate the transfer with the receiving firm (Merrill Edge), not your current one. Merrill Edge will then contact your old brokerage on your behalf.
Online Transfer Tool: Merrill Edge offers an online transfer tool that can streamline this process. Look for an "Account Transfer" or "Transfer Assets" option within your Merrill Edge account or on their website.
Completing the Transfer Form: You'll typically be asked to fill out a "Transfer Initiation Form" or a similar document. This form will require the information you gathered in Step 1, including:
Your current brokerage's name and account number.
Your Merrill Edge account number.
Whether it's a full or partial transfer.
Full Transfer: All assets from your current account are moved to Merrill Edge, and your old account is closed.
Partial Transfer: Only specific assets you designate are moved, and your old account remains open. For partial transfers, you'll need to specify the exact securities (stock symbol and quantity) you want to move.
Your signature(s). For joint accounts, all account holders may need to sign.
For retirement accounts (IRAs), you'll also likely need to designate Merrill Edge as the new custodian.
Sub-heading: Special Cases (Non-ACATS Transfers)
While most common securities transfer via ACATS, some assets or situations may require a "non-ACATS" or manual transfer. These include:
Physical Stock Certificates: If you hold physical stock certificates, you'll likely need to deposit them with Merrill Edge, which can be a more manual process.
Alternative Investments: Limited partnerships, private equity, or certain complex derivatives may not be ACATS-eligible.
Foreign Securities: Transferring foreign assets can be more involved and take longer.
If you have any of these, it's best to contact Merrill Edge directly to discuss the specific procedures and timelines.
Step 3: The Waiting Game – Monitoring Your Transfer
Once you've submitted your transfer request, patience is key. The ACATS process is designed to be efficient, but it still takes time.
Sub-heading: Estimated Timelines
ACATS Transfers: Typically take 5 to 7 business days to complete. During this period, your investments will be "in transit" and generally cannot be traded.
Non-ACATS/Manual Transfers: Can take significantly longer, ranging from 15 business days to even 4-6 weeks depending on the complexity of the assets and the responsiveness of the delivering firm.
Sub-heading: Tracking Your Transfer Status
Merrill Edge Online: You can usually track the status of your transfer directly through your Merrill Edge online account. Look for a "Transfer History" or "Account Status" section.
Communication: Merrill Edge will usually notify you of any issues or delays. Be responsive if they request additional information.
Contacting Customer Service: If you notice an unusually long delay or have concerns, don't hesitate to contact Merrill Edge's customer service. Have your account numbers and transfer details ready.
Sub-heading: What to Expect During the Transfer
Trading Restrictions: Your investments will generally be frozen for trading during the transfer period. This means you won't be able to buy or sell these specific securities until the transfer is complete and they appear in your Merrill Edge account.
Statement Updates: Your statements from both brokerages might show partial transfers or pending transactions during this time.
Step 4: Verify and Confirm – Ensuring Accuracy
The transfer is complete! Now, it's time for the final and crucial step: verifying that everything arrived correctly.
Sub-heading: Cross-Reference Your Holdings
Compare with Records: Pull out that old account statement or your personal records from Step 1. Compare the list of securities and their quantities in your Merrill Edge account with what you intended to transfer.
Check Cost Basis: Verify that the cost basis information for your transferred securities is accurate in your Merrill Edge account. This is critical for calculating capital gains or losses when you eventually sell them.
Cash Balance: Confirm that any cash balance from your previous account (if applicable) has been transferred correctly.
Sub-heading: Address Any Discrepancies Promptly
Contact Merrill Edge Immediately: If anything is missing, incorrect, or doesn't match your expectations, contact Merrill Edge customer service as soon as possible. The sooner you address an issue, the easier it is to resolve.
Common Reasons for Transfer Issues:
Mismatched Account Information: Names or account types don't exactly align between the two firms.
Non-Transferable Assets: Certain securities couldn't be transferred and might have been liquidated or remained at the old brokerage.
Outstanding Fees/Issues: Unresolved matters at the previous brokerage.
Incorrect Form Submission: Errors on the transfer form.
Merrill Edge will work with you to rectify any problems.
Congratulations!
You've successfully transferred your stocks to Merrill Edge. Now you can explore Merrill Edge's platform, research tools, and integrated banking services if you have a Bank of America account. Enjoy your consolidated and streamlined investment experience!
Frequently Asked Questions (FAQs)
Here are 10 related FAQ questions to help you further navigate stock transfers to Merrill Edge:
How to open a Merrill Edge account? You can open a Merrill Edge account online through their website. You'll need to provide personal information, employment details, and link a funding source. Ensure the account type matches your existing account for seamless transfer.
How to link a Bank of America account to Merrill Edge? If you already have a Bank of America account, your Merrill Edge account is typically linked automatically as part of the Bank of America ecosystem. You can usually see both accounts when you log in to either platform.
How to find my current brokerage's account number for transfer? Your account number will be clearly listed on your most recent brokerage statement, either paper or electronic. You can also find it by logging into your current brokerage's online portal or by contacting their customer service.
How to know if my stocks are ACATS eligible? Most publicly traded stocks, ETFs, and mutual funds are ACATS eligible. However, proprietary mutual funds, illiquid securities, and certain alternative investments may not be. If in doubt, consult with Merrill Edge or your current brokerage.
How to transfer only specific stocks to Merrill Edge (partial transfer)? On the Merrill Edge transfer initiation form, there will be an option to specify a partial transfer. You'll then need to list the exact stock symbols and quantities you wish to move.
How to avoid transfer fees when moving to Merrill Edge? While your existing brokerage might charge an outgoing transfer fee, Merrill Edge sometimes offers incentives or reimbursements for these fees, especially for larger transfers. It's always best to inquire with a Merrill Edge representative about any available promotions.
How to track the status of my stock transfer to Merrill Edge? You can typically track the status of your transfer by logging into your Merrill Edge online account and looking for a "Transfer History" or similar section. Merrill Edge customer service can also provide updates.
How to handle cost basis information after a stock transfer? For ACATS transfers, your cost basis information should automatically transfer with your securities. It's vital to verify this data in your Merrill Edge account once the transfer is complete, as it impacts your taxes when you sell.
How to transfer an IRA to Merrill Edge? Transferring an IRA to Merrill Edge follows a similar ACATS process. You'll need to open a corresponding IRA account (Traditional, Roth, SEP, etc.) at Merrill Edge and initiate the transfer from there. Merrill Edge will handle the communication with your current IRA custodian.
How to contact Merrill Edge customer service for transfer assistance? You can usually find Merrill Edge's customer service contact information (phone number and sometimes online chat options) on their official website, typically in the "Help & Support" or "Contact Us" section.
