Thinking about closing your Merrill Edge account? Whether you're consolidating your investments, moving to a new broker, or simply stepping away from the market, closing a brokerage account requires a few important steps to ensure a smooth transition. Don't worry, we'll walk you through the process, step by step, to make it as straightforward as possible.
Let's dive in!
How Do I Close My Merrill Edge Account? A Comprehensive Guide
Closing an investment account isn't as simple as clicking a "delete" button. It involves careful planning to avoid unnecessary fees, tax implications, and delays. Here's a detailed, step-by-step guide to help you navigate the process of closing your Merrill Edge account.
Step 1: Determine Your "Why" and "How"
Before you even think about picking up the phone or logging in, take a moment to understand why you want to close your account and how you plan to move your assets. This initial reflection will guide your entire process.
Why are you closing the account?
Transferring to another brokerage: This is often the most common reason. If you're simply moving your investments to a different broker (e.g., Fidelity, Schwab, Vanguard), an "Account Transfer" (ACATS) is typically the most efficient and tax-advantageous method. You'll generally initiate this process with your new broker.
Cashing out your investments: If you need the funds for other purposes, you'll need to liquidate your holdings and withdraw the cash. Be mindful of potential capital gains taxes.
Consolidating accounts: You might have multiple Merrill Edge accounts and wish to merge them, or you might be simplifying your financial life by reducing the number of institutions you deal with.
Dissatisfaction with Merrill Edge: While unfortunate, if you're unhappy with the service, fees, or investment options, closing the account is a direct solution.
How do you plan to handle your assets?
In-Kind Transfer (ACATS): This is ideal for transferring stocks, ETFs, mutual funds, and other securities without selling them. Your assets simply move from your Merrill Edge account to your new brokerage account. This avoids triggering capital gains taxes at the time of transfer.
Liquidation and Cash Transfer: If you need the cash, you'll sell all your investments first, and then transfer the resulting cash balance to a linked bank account. Remember to factor in the time it takes for trades to settle (typically T+2 business days) before the funds are available for withdrawal.
Partial Transfer: You might decide to transfer some assets and liquidate others.
Knowing your objective from the outset will save you time and potential headaches down the line.
Step 2: Prepare Your Merrill Edge Account for Closure
Once you've decided on your approach, it's time to get your Merrill Edge account ready. This involves several crucial preliminary steps.
Sub-heading 2.1: Settle All Balances and Positions
Bring your balance to zero: This is paramount. If you have a negative balance, you'll need to deposit funds to cover it. If you have a positive cash balance, you'll need to transfer it out.
Close all open positions: If you're not doing an in-kind transfer, you must sell all your stocks, ETFs, mutual funds, options, or any other investments. Ensure all trades have settled before proceeding. This typically takes T+2 business days for stocks and ETFs.
Address any outstanding debits or credits: Check for any pending transactions, fees, or unposted dividends that might affect your balance.
Cancel recurring payments/deposits: If you have any automated deposits (like direct deposit from your paycheck) or recurring payments set up from your Merrill Edge account, cancel them immediately. You don't want new funds coming in or payments going out once you initiate closure.
Sub-heading 2.2: Download Important Documents and Statements
Crucial for Tax and Record-Keeping: Before your account is officially closed, download all your statements, tax documents (like 1099s), trade confirmations, and any other important records you might need. Once the account is closed, you may lose online access to these documents.
Tip: Create a dedicated folder on your computer for these financial records.
Sub-heading 2.3: Update Contact Information (If Necessary)
Ensure your mailing and email addresses are current with Merrill Edge. They will typically send a final statement and a confirmation of closure, so you want to make sure you receive these important notifications.
Sub-heading 2.4: Destroy Associated Cards and Checks
If your Merrill Edge account is linked to a Merrill Lynch Cash Management Account (CMA) with a debit card or checks, destroy them once you've confirmed all funds are transferred out and the account is ready for closure.
Step 3: Choose Your Closure Method: Transfer vs. Liquidation
This is where your "how" from Step 1 becomes actionable.
Sub-heading 3.1: Account Transfer (ACATS) - Recommended for Moving Investments
Initiate with your new brokerage: This is the most important point for ACATS transfers. You typically do not start the transfer process with Merrill Edge. Instead, you open an account at your chosen new broker (e.g., Fidelity, Schwab), and then initiate the ACATS transfer from their platform.
Provide necessary information: Your new broker will ask for your Merrill Edge account number and the type of account you're transferring (e.g., Individual Brokerage, Roth IRA, Traditional IRA).
Sign the transfer form: You'll complete and sign an Account Transfer Form provided by your new broker.
Merrill Edge's role: Once your new broker submits the ACATS request, Merrill Edge will receive it and process the transfer. They may charge an outgoing transfer fee (it's often around $49.95 for full account transfers, but verify current fees directly with Merrill Edge).
Processing Time: ACATS transfers usually take 3-5 business days to complete, but can sometimes take up to a few weeks depending on the complexity of the assets. You can often track the status of your transfer through your new broker's platform.
Sub-heading 3.2: Liquidation and Cash Withdrawal
Sell all holdings: As mentioned in Step 2, ensure all your investment holdings are sold and the trades have settled.
Withdraw cash: Merrill Edge typically offers bank transfers (ACH) as the primary method for withdrawing funds.
Online Transfer: Log in to your Merrill Edge account, navigate to the "Transfers" or "Withdrawals" section, and initiate an electronic transfer to a linked bank account.
Wire Transfer: For larger sums, a wire transfer might be an option, though these often incur a fee.
Check: You might also be able to request a check be mailed to you.
Processing Time: Bank transfers can take 3 or more business days to arrive in your linked bank account.
Step 4: Contact Merrill Edge to Formalize Closure
While preparing your account and transferring assets are critical, you'll still need to directly communicate your intention to close the account with Merrill Edge.
Primary Method: Phone Call
This is generally the most effective way to ensure your account is properly closed and to address any lingering issues.
Merrill Edge customer service numbers:
Merrill Edge Self-Directed Investing: 1.877.653.4732
Merrill Edge Advisory Center: 1.888.654.6837
Merrill Lynch Wealth Management: 1.800.MERRILL (637.7455)
Be prepared: Have your account number handy, and be ready to answer security questions to verify your identity.
Expect a retention attempt: They may ask why you're closing and try to offer incentives to stay. Be firm but polite.
In-Person (If Applicable):
If you live near a Bank of America financial center (as Merrill Edge is part of Bank of America), you may be able to visit in person to request account closure. However, for investment accounts, phone contact is often more direct.
Written Request (Less Common for Brokerage Accounts):
While some bank accounts can be closed via mail, for brokerage accounts, a phone call is usually preferred for faster resolution and real-time confirmation. If you choose to mail a request, ensure it's a formal letter with your account details, a clear request for closure, and your signature. Send it via certified mail with a return receipt.
Step 5: Confirm Account Closure
Receive Confirmation: After you've completed the steps, Merrill Edge should send you a confirmation (likely via email or mail) once your account is officially closed.
Check Final Statement: You will also receive a final statement in the mail. Review it carefully to ensure there are no unexpected transactions or lingering balances.
Log in Attempt (Optional but Recommended): After a week or two, try to log in to your Merrill Edge account. If it's truly closed, you should no longer be able to access it.
Important Considerations:
Fees: Be aware of any potential fees for outgoing transfers (ACATS) or wire transfers.
Tax Implications: Selling assets will trigger capital gains or losses, which have tax implications. Consult with a tax advisor if you're unsure. In-kind transfers generally avoid immediate tax events.
IRA Closures: If you're closing an IRA, ensure you understand the rules for rollovers to avoid penalties and taxes. Direct rollovers are typically the safest method.
Joint Accounts: If it's a joint account, all account holders may need to authorize the closure.
Estate Accounts: Closing an account for a deceased individual involves different procedures and documentation (e.g., death certificate, letters testamentary).
Patience is Key: The process can take several business days, especially if you're transferring assets.
10 Related FAQ Questions
Here are 10 frequently asked questions about closing a Merrill Edge account, with quick answers:
How to transfer my Merrill Edge account to another brokerage?
You generally initiate an ACATS (Automated Customer Account Transfer Service) transfer with your new brokerage. They will handle the paperwork and coordination with Merrill Edge to transfer your assets in-kind.
How to avoid taxes when closing my Merrill Edge account?
To avoid immediate tax implications, opt for an in-kind transfer (ACATS) to another brokerage, especially for taxable accounts. Selling assets will trigger capital gains or losses. For IRAs, ensure it's a direct rollover.
How to withdraw all my money from Merrill Edge?
First, sell all your investments and wait for the trades to settle (typically T+2 business days). Then, initiate an electronic bank transfer (ACH) from your Merrill Edge account to a linked bank account.
How to find my Merrill Edge account number?
Your Merrill Edge account number can typically be found on your account statements, trade confirmations, or by logging into your online account and navigating to your account details.
How to contact Merrill Edge customer service for account closure?
You can call Merrill Edge Self-Directed Investing at 1.877.653.4732 or Merrill Edge Advisory Center at 1.888.654.6837. Phone calls are generally the most effective way to initiate closure.
How to check if my Merrill Edge account is fully closed?
You will typically receive a confirmation notice via email or mail from Merrill Edge. You can also try logging into your online account; if it's closed, you won't be able to access it.
How to get my tax documents after closing my Merrill Edge account?
It's highly recommended to download all your tax documents before closing your account. If you forgot, you may need to contact Merrill Edge customer service to request copies, though access might be limited post-closure.
How to close a Merrill Edge IRA account?
For IRA accounts, a direct rollover to another IRA custodian is usually the best approach to avoid taxes and penalties. Initiate this with your new IRA provider, who will coordinate the transfer.
How to handle a negative balance when closing my Merrill Edge account?
You must resolve any negative balance by depositing funds into your Merrill Edge account before it can be closed. The account cannot be closed with an outstanding debt.
How to deal with fees when transferring out of Merrill Edge?
Merrill Edge may charge an outgoing ACATS transfer fee (often around $49.95 for a full account transfer). Inquire about current fees directly with Merrill Edge and your new brokerage (some new brokers may offer to reimburse transfer fees).
