Feeling like it's time to tap into your Merrill Edge investments? Whether you're planning a big purchase, covering unexpected expenses, or simply want to rebalance your finances, getting your money out of your brokerage account can seem a bit daunting. But don't worry, it's a straightforward process once you know the steps. This comprehensive guide will walk you through everything you need to know about withdrawing money from your Merrill Edge account, ensuring a smooth and successful transfer.
Let's dive in!
Step 1: Understanding Your Merrill Edge Account and Withdrawal Options
Before you initiate any withdrawal, it's crucial to understand the type of Merrill Edge account you have and the various ways you can withdraw your funds. Different account types (e.g., self-directed brokerage, IRA, guided investing) might have slightly different considerations, especially regarding tax implications for retirement accounts.
What kind of account do you have?
Self-Directed Brokerage Account: This is your standard investment account where you manage your own trades. Withdrawals are generally simpler, as they're typically not subject to immediate tax penalties unless you're selling investments for a capital gain.
IRA (Individual Retirement Account - Traditional or Roth): Withdrawals from IRAs have specific age and time-based rules to avoid penalties. For example, with a Traditional IRA, withdrawals are generally taxed as ordinary income in retirement, and early withdrawals (before 59½) may incur a 10% penalty unless an exception applies. Roth IRA contributions can be withdrawn tax-free and penalty-free at any time, but earnings usually require you to be 59½ and have had the account for at least five years for qualified distributions. Always consult a tax advisor regarding IRA withdrawals!
Merrill Guided Investing Account: While Merrill manages your portfolio, the withdrawal process will still route through your associated brokerage account.
Common Withdrawal Methods:
Electronic Fund Transfer (EFT) / ACH Transfer: This is by far the most common, convenient, and often free method to transfer funds directly to your linked bank account. It's like a digital bridge between your Merrill Edge account and your checking or savings account.
Wire Transfer: For larger, time-sensitive withdrawals, a wire transfer can be a faster option, though it typically incurs a fee.
Requesting a Check: If you prefer a physical check, Merrill Edge can mail one to your address of record.
Transfer to a Linked Bank of America Account: If you have a Bank of America checking or savings account linked to your Merrill Edge account, transfers between them can often be real-time or very fast.
Step 2: Logging In and Navigating to the Transfer Section
Ready to get started? The first practical step is to access your Merrill Edge account online.
Accessing Your Account:
Open your web browser and go to the official Merrill Edge website.
Locate the "Log In" button, typically in the top right corner of the page.
Enter your User ID and Password. If you've forgotten them, use the "Forgot User ID" or "Forgot Password" links to regain access.
Finding the Transfer Section:
Once logged in, look for a prominent tab or menu option labeled "Accounts" or "Transfers."
Under "Accounts" or "Transfers," you'll usually find an option like "Transfer Money & Securities" or simply "Move Money." Click on this.
Step 3: Initiating Your Withdrawal Request
Now that you're in the right place, it's time to tell Merrill Edge what you want to do.
Selecting Your Withdrawal Type:
On the transfer page, you'll likely see options for "Transfer from," "Transfer to," and the type of transfer (e.g., "Cash," "Securities").
Under "Transfer from," select your Merrill Edge investment account from which you wish to withdraw funds.
Under "Transfer to," choose your linked bank account. If you haven't linked a bank account yet, you'll need to do that first (see the "How to link an external bank account to Merrill Edge" FAQ below).
Select "Cash" as the type of asset you want to transfer.
Specifying the Amount:
Enter the specific dollar amount you wish to withdraw.
Important Note: Ensure you have sufficient settled cash in your Merrill Edge account to cover the withdrawal. If you've recently sold investments, the funds might still be "unsettled" (typically 1-2 business days for equities). Attempting to withdraw unsettled funds will likely result in a delay or rejection of your request. You can check your "Cash Available for Withdrawal" balance on your account summary page.
Step 4: Reviewing and Confirming Your Withdrawal
This is a critical step to ensure accuracy and avoid any errors.
Verification of Details:
Merrill Edge will present a summary of your withdrawal request. Carefully review all the details, including:
The Merrill Edge account you're withdrawing from.
The linked bank account you're sending the money to (verify the last few digits and bank name).
The withdrawal amount.
The estimated processing time (this is usually provided).
Any potential fees (EFTs are typically free, but wire transfers have a fee, usually around $25).
Double-check the routing number and account number of your linked bank account if they are displayed. Incorrect information can lead to significant delays and complications.
Final Authorization:
Once you're satisfied that all the information is correct, you'll need to confirm the transaction. This often involves clicking a "Confirm" or "Submit" button.
You might be asked to enter a security code sent to your phone or email for two-factor authentication, an added layer of security.
Step 5: Tracking Your Withdrawal and Receiving Funds
After submitting your request, you'll want to monitor its progress.
Monitoring Your Account:
Merrill Edge usually provides a confirmation message with a reference number for your withdrawal. Keep this number handy.
You can typically track the status of your transfer within the "Activity" or "Transaction History" section of your Merrill Edge account.
EFTs usually take 1-3 business days to process and for funds to appear in your external bank account. Wire transfers can be same-day or within 24 hours if initiated early enough in the business day. Checks will take longer to arrive by mail.
Confirming Receipt:
Once the estimated processing time has passed, check your linked bank account to confirm the funds have arrived.
If the funds haven't appeared within the expected timeframe, refer to your Merrill Edge account's transaction history for any updates or contact Merrill Edge customer service (see FAQ for contact details).
Important Considerations:
Tax Implications: For non-retirement accounts, withdrawing cash generally doesn't trigger a taxable event unless you sell securities at a gain to generate that cash. For IRAs and other retirement accounts, withdrawals are often taxable and may incur penalties if not done correctly. Always consult a qualified tax professional for personalized advice regarding withdrawals from retirement accounts.
Settlement Time for Securities: Remember, if you sell investments to make a withdrawal, the cash from those sales isn't immediately available. It needs to "settle," which typically takes 1-2 business days for stocks and ETFs. Plan your withdrawals accordingly.
Account Linking: Ensure your bank account is properly linked to your Merrill Edge account. If it's not, you'll need to complete this setup first, which might take a few days for verification.
Fees: While ACH transfers are typically free, wire transfers usually have a fee. Be aware of any potential charges before initiating the transfer.
Security: Always ensure you are on the official Merrill Edge website and that your internet connection is secure when performing financial transactions. Avoid public Wi-Fi.
This step-by-step guide should empower you to confidently withdraw your funds from Merrill Edge. Remember, planning and verifying details are key to a smooth process!
Frequently Asked Questions (FAQs)
Here are 10 common "How to" questions related to withdrawing money from Merrill Edge:
How to link an external bank account to Merrill Edge?
To link an external bank account, log in to your Merrill Edge account, navigate to "Transfer Money & Securities," and look for an option to "Add External Account" or "Link Account." You'll typically need to provide your bank's routing number and your account number. Merrill Edge may use small trial deposits (micro-deposits) to verify your ownership of the external account, which can take 1-3 business days.
How to find my available cash balance for withdrawal on Merrill Edge?
After logging in, your account summary or dashboard will typically display various balances. Look for "Cash Available for Withdrawal," "Settled Cash," or a similar designation. This represents the amount you can immediately withdraw without waiting for recent trades to settle.
How to withdraw money from a Merrill Edge IRA without penalty?
Withdrawing from an IRA without penalty typically requires you to be at least 59½ years old. For Roth IRAs, your contributions can be withdrawn tax-free and penalty-free at any time. For earnings, you generally need to meet the 5-year rule and be 59½. There are also specific exceptions for early withdrawals (e.g., first-time home purchase, qualified education expenses, certain medical expenses). It's highly recommended to consult a tax advisor before withdrawing from an IRA.
How to make a wire transfer from Merrill Edge?
To initiate a wire transfer, log in to your Merrill Edge account, go to "Transfer Money & Securities," and select "Wire Transfer" as the method. You will need the recipient bank's name, routing number, account number, and potentially the SWIFT/BIC code for international wires. Be aware that wire transfers typically incur a fee (around $24.95 for domestic wires).
How to request a physical check from Merrill Edge?
While online transfers are more common, you can usually request a check by navigating to the "Transfer Money & Securities" section and selecting the "Request a Check" or "Withdraw by Check" option. The check will be mailed to your address of record and can take several business days to arrive.
How to check the status of my Merrill Edge withdrawal?
After initiating a withdrawal, you can track its status by logging into your Merrill Edge account and going to your "Activity," "Transaction History," or "Pending Transfers" section. You should see the requested withdrawal listed with its current status.
How to cancel a pending Merrill Edge withdrawal?
If your withdrawal is still in a "pending" status, you might be able to cancel it online through the "Activity" or "Pending Transfers" section. If you don't see an option to cancel online, or if the transfer is already in progress, you will need to contact Merrill Edge customer service immediately for assistance.
How to avoid fees when withdrawing from Merrill Edge?
The most common way to avoid withdrawal fees is to use Electronic Fund Transfers (EFTs) or ACH transfers to your linked bank account, as these are typically free. Wire transfers and checks may incur fees.
How long does it take to withdraw money from Merrill Edge?
EFT/ACH Transfer: Typically 1-3 business days.
Wire Transfer: Same-day or within 24 hours if initiated early in the business day.
Check: Several business days for mailing plus processing time.
Note: These times are for settled cash. If you sell investments, factor in 1-2 business days for those funds to settle first.
How to contact Merrill Edge customer service for withdrawal issues?
You can contact Merrill Edge customer service by phone. For Merrill Edge Self-Directed Investing, call 1.877.653.4732. For Merrill Edge Advisory Center, call 1.888.654.6837. You can also find additional contact information on their official website under "Help & Support" or "Contact Us."
