Closing an investment account can seem like a daunting task, but with the right steps, it can be a smooth process. If you've decided to close your Merrill Edge account, this comprehensive guide will walk you through everything you need to know, from preparing your account to handling potential fees. Let's get started!
Are you absolutely sure you want to close your Merrill Edge account?
Before we dive into the nitty-gritty, it's worth taking a moment to consider why you're closing your account. Is it due to fees, dissatisfaction with services, or simply consolidating your finances? Sometimes, issues can be resolved or a different account type at Merrill Edge might better suit your needs. If you're simply looking to transfer assets to another brokerage, that's often a more straightforward process than a full closure, and might even save you from potential liquidation and tax implications.
However, if your decision is firm, let's proceed with the step-by-step guide to closing your Merrill Edge account.
Step 1: Pre-Closure Preparations – Getting Your Ducks in a Row
Before you even think about contacting Merrill Edge, there are crucial steps you need to take to ensure a seamless closure. Ignoring these steps can lead to delays, unexpected fees, or even tax headaches.
Sub-heading 1.1: Zero Out Your Balance (or Plan for Transfer)
This is perhaps the most critical step. You cannot close an account with an active balance, whether positive or negative.
If you have a positive balance (cash or investments):
Selling Assets: If you plan to fully close the account and not transfer your investments, you'll need to sell all your holdings. This includes stocks, ETFs, mutual funds, bonds, and any other securities. Be mindful of capital gains or losses this might trigger for tax purposes.
Withdrawing Cash: Once your assets are liquidated and the trades have settled (which can take a few business days), you'll need to withdraw all your cash. Merrill Edge primarily facilitates withdrawals via bank transfer (ACH). You can link an external bank account and initiate a transfer. Be aware that wire transfers usually incur a fee ($24.95 for domestic and international wires for general investing accounts).
Transferring Assets (ACATS): If you're moving your investments to another brokerage, this is often the most efficient route. This is called an Automated Customer Account Transfer Service (ACATS). In this scenario, you do not sell your assets. Instead, your new brokerage will initiate the transfer from Merrill Edge. This typically avoids immediate tax implications as it's a transfer of assets, not a sale.
If you have a negative balance (e.g., margin debt):
You must deposit funds to cover any negative balance before you can close the account. Contact Merrill Edge customer service to understand the exact amount owed and the best way to clear it.
Sub-heading 1.2: Cancel Recurring Transactions and Services
Direct Deposits: If your Merrill Edge account receives any direct deposits (e.g., salary, government benefits), update the source with your new account information. Merrill Edge will not accept direct deposits into a closed account.
Recurring Payments: Any recurring payments or bill pay services set up through your Merrill Edge account will need to be cancelled and re-established with a new account. This includes utility bills, subscriptions, or any other automated payments.
Linked Services: If you use features like "Keep the Change" or "Balance Connect™ for overdraft protection" linked to your Merrill Edge account, disable these.
Physical Instruments: Destroy any debit cards and checks associated with your Merrill Edge account to prevent accidental use or fraudulent activity.
Sub-heading 1.3: Download and Save Your Statements
Once your account is closed, you may lose online access to past statements and tax documents. It is highly recommended to download and save all your account statements, trade confirmations, and tax documents (like 1099s) for your records. This information is crucial for tax filing and future reference.
Step 2: Contacting Merrill Edge – Initiating the Closure Request
With your account prepared, it's time to formally request the closure. Merrill Edge offers a few ways to do this, with phone being the most common and often the most efficient for investment accounts.
Sub-heading 2.1: The Preferred Method – Phone Call
Merrill Edge Self-Directed Clients: Call 1.877.653.4732
Merrill Advisory Center Clients: Call 1.888.654.6837
General Bank of America Customer Service: You can also try 800.432.1000 (Mon-Fri 7 a.m.-10 p.m. or Sat-Sun 8 a.m.-5 p.m., eastern time). They can direct you to the correct Merrill Edge department if needed.
When you call:
Clearly state your intention to close your Merrill Edge account.
Be prepared to verify your identity with account numbers, personal information, and possibly security questions.
They may try to retain your business. Be polite but firm if you've made up your mind.
Ask about any remaining steps or required forms.
Confirm any potential fees associated with the closure (more on this in Step 3).
Request a confirmation number or email once the closure process is initiated.
Sub-heading 2.2: Alternative Methods (Less Common for Brokerage)
While less common for investment accounts, for other types of Bank of America accounts (which may be linked to Merrill Edge), you might have these options:
In Person: Visit a Bank of America financial center near you. A representative can assist with the closure process. This can be beneficial if you prefer face-to-face interaction or have complex questions.
Mail: For some Bank of America accounts, you can send a written request. However, for Merrill Edge investment accounts, this is generally not the primary or most efficient method. If you choose this, ensure your letter is clear, includes all necessary account information, and is signed. For balances over $25,000, a notarized letter might be required.
Step 3: Understanding Fees and Potential Implications – No Surprises!
Closing an account, especially a brokerage account, can sometimes come with fees. It's crucial to be aware of these beforehand.
Sub-heading 3.1: Account Closure Fees
Merrill Edge Self-Directed General Investing Accounts:
Full Account Transfer Fee: $49.95
Partial Account Transfer Fee: $0
Closeout Fee (non-retirement account): $0
Merrill Edge Self-Directed Retirement Accounts:
Full Account Transfer Fee: $49.95
Partial Account Transfer Fee: $0
Closeout Fee: $49.95
Merrill Guided Investing Accounts:
Closeout Fee: $49.95
Full Account Transfer Fee: $49.95
Merrill Guided Investing with an Advisor:
Closeout Fee: $75
Full Account Transfer Fee: $75
It's important to note that these fees are subject to change, so always confirm them with a Merrill Edge representative when you initiate the closure.
Sub-heading 3.2: Other Potential Costs
Wire Transfer Fees: If you opt for a wire transfer to move remaining cash, domestic and international wire fees apply ($24.95).
Trading Fees (if selling assets): While Merrill Edge generally offers $0 online stock, ETF, and option trades, there might be fees for certain types of investments (e.g., some mutual funds, broker-assisted trades). Ensure you understand any trading costs incurred during liquidation.
Tax Implications: Selling assets in a taxable brokerage account will trigger capital gains or losses, which will need to be reported on your taxes. Consult with a tax advisor if you have significant holdings or complex tax situations. Transferring assets (ACATS) typically avoids immediate tax implications.
Step 4: Follow-Up and Confirmation – Ensuring It's Done Right
The account closure process isn't always instant. It can take some time for all transactions to settle and for the account to be fully closed.
Monitor Your Accounts: Keep an eye on your Merrill Edge account (if you still have online access) for a few weeks after initiating the closure to ensure no new activity occurs and the balance remains zero.
Expect a Final Statement: Merrill Edge will send you a final statement in the mail after your account is officially closed. Review this statement carefully to confirm there are no unexpected transactions or lingering issues.
Email Confirmation: If Merrill Edge has your email address on file, they should send you a message once your account is officially closed.
Contact If Delayed: If you don't receive confirmation within the timeframe they provided, don't hesitate to call Merrill Edge customer service again to check the status.
Step 5: What to Expect After Closure – Life Beyond Merrill Edge
Once your account is officially closed, you'll no longer have access to it.
No More Statements: You will stop receiving regular statements from Merrill Edge.
No Online Access: Your online login credentials for that specific account will likely become inactive.
Tax Documents: You will still receive any necessary tax documents (e.g., 1099s) for the year of closure, typically in January of the following year. This is why saving your statements beforehand is so important.
10 Related FAQ Questions (Starting with 'How to')
How to Check My Merrill Edge Account Balance Before Closing?
You can check your Merrill Edge account balance by logging into your Merrill Edge online account or by calling Merrill Edge customer service.
How to Transfer Money Out of Merrill Edge Before Closing?
You can transfer money out of Merrill Edge by initiating an ACH transfer to a linked external bank account through their online portal or by requesting a wire transfer via phone.
How to Transfer Investments from Merrill Edge to Another Brokerage?
To transfer investments, open an account with your new brokerage and initiate an ACATS (Automated Customer Account Transfer Service) transfer from the new brokerage, providing your Merrill Edge account details.
How to Find My Merrill Edge Account Number?
Your Merrill Edge account number can be found on your account statements, within your online account dashboard, or by contacting Merrill Edge customer service.
How to Avoid Fees When Closing a Merrill Edge Account?
To minimize fees, ensure your account balance is zero (transferring cash or assets) and be aware of potential full account transfer fees, especially for retirement accounts. If your account is a non-retirement self-directed account, there is typically no closeout fee.
How to Get My Tax Documents After Closing My Merrill Edge Account?
Merrill Edge will mail you any necessary tax documents (like 1099s) for the year your account was closed in the following tax season. It's also highly recommended to download all statements and tax documents before closing the account.
How to Close a Merrill Edge IRA Account?
Closing a Merrill Edge IRA account typically involves transferring the funds to another qualified retirement account (e.g., a Roth IRA or Traditional IRA at another institution) or taking a taxable distribution. A closeout fee of $49.95 usually applies to retirement accounts.
How to Contact Merrill Edge Customer Service for Account Closure?
You can contact Merrill Edge customer service for account closure by calling 1.877.653.4732 for Self-Directed clients or 1.888.654.6837 for Advisory Center clients.
How to Reopen a Merrill Edge Account After Closing It?
If you've closed your account and wish to reopen one, you would generally need to go through the new account opening process again, as a closed account cannot typically be simply "reactivated."
How to Handle Outstanding Checks or Transactions When Closing My Merrill Edge Account?
Ensure all outstanding checks have cleared and all pending transactions have settled before initiating closure. It's best to stop using the account for transactions well in advance and cancel any recurring payments or direct deposits linked to it.
