Closing a brokerage account might seem like a daunting task, but with the right information and a clear plan, you can navigate the process smoothly. If you've decided to cancel your Merrill Edge account, this comprehensive guide will walk you through every step, ensuring you know exactly what to do.
Ready to Say Goodbye to Your Merrill Edge Account? Let's Get Started!
Thinking about closing your Merrill Edge account? Whether you're consolidating your investments, switching to a new broker, or simply stepping away from the market, it's a decision that requires careful consideration. Before you dive in, let's ensure you're fully prepared for what's ahead.
Step 1: Understand the "Why" and "What" of Your Account Closure
Before you lift a finger, it's crucial to understand why you're closing your account and what assets you hold within it. This initial assessment will dictate the specific steps you need to take.
Sub-heading: Why are you closing your Merrill Edge account?
Switching Brokers? If you're moving to another brokerage, a direct account transfer (ACATS) might be your best bet, saving you time and potential tax implications from selling assets.
Consolidating Accounts? Similar to switching, consolidating often involves transferring assets to an existing account elsewhere.
Cashing Out Entirely? If you're done with investing for now, you'll need to liquidate all your assets and withdraw the cash.
Sub-heading: What's in your Merrill Edge account?
Stocks, ETFs, Mutual Funds? These are securities that can be sold or transferred.
Cash Balances? Any remaining cash will need to be withdrawn.
Retirement Accounts (IRAs)? Closing these requires special attention due to potential tax penalties for early withdrawals or improper rollovers.
Open Positions? You cannot close an account with open trades. All trades must be settled.
Step 2: Prepare Your Account for Closure – The Pre-Liquidation Phase
This is where the real work begins. You need to get your account to a state where Merrill Edge can actually close it. Remember, a Merrill Edge account generally needs to have a zero balance to be officially closed.
Sub-heading: Liquidating Your Assets (If Not Transferring)
If you're cashing out, you'll need to sell all your securities.
Log in to your Merrill Edge account.
Navigate to your holdings or portfolio.
Initiate sell orders for all your stocks, ETFs, mutual funds, and any other securities. Be mindful of market hours and potential price fluctuations.
Factor in settlement times: Most trades settle one business day after they are placed (T+1). You cannot withdraw funds until they have fully settled.
Sub-heading: Addressing Retirement Accounts (IRAs)
Rollover to Another IRA: This is often the most tax-efficient way to move retirement funds. Your new brokerage can typically assist with a direct rollover, ensuring the funds go directly from Merrill Edge to your new IRA without you touching them.
Direct Rollover to a 401(k) or Other Employer Plan: If your new employer's plan allows, you might be able to roll your IRA into it.
Cash Withdrawal (with caution!): Withdrawing from an IRA before age 59½ can incur a 10% early withdrawal penalty on top of ordinary income taxes, unless an exception applies. Consult a tax advisor before considering this option.
Sub-heading: Transferring Assets to Another Broker (ACATS Transfer)
If you're moving to another broker, an ACATS (Automated Customer Account Transfer Service) transfer is generally the easiest and most common method.
Contact your new brokerage firm first. They will initiate the transfer on your behalf.
Your new broker will typically provide the necessary forms. You'll fill these out, authorizing the transfer from Merrill Edge.
Provide accurate account information for both your Merrill Edge account and your new account.
Merrill Edge usually doesn't charge for outgoing ACATS transfers, which is a plus. However, confirm any potential fees with your new broker.
Be aware that partial transfers are also possible if you only want to move some assets.
Sub-heading: Handling Cash Balances
Once all your securities are liquidated and settled (or transferred), you'll likely have a cash balance.
Initiate a cash withdrawal. Merrill Edge typically allows you to withdraw via:
ACH Transfer: This is a common and usually free method to transfer funds to a linked bank account. It can take a few business days.
Wire Transfer: Faster but often incurs a fee.
Check: You can request a check be mailed to you.
Ensure all funds have settled before attempting to withdraw.
Step 3: Formalizing the Closure – The Direct Communication Phase
Once your account balance is at or near zero (or all assets are transferred), it's time to formally request the account closure.
Sub-heading: Contacting Merrill Edge Customer Service
This is the most reliable way to cancel your account.
Phone Call: This is often the quickest and most direct way to confirm the closure process and address any remaining issues. Merrill Edge has customer support available. You can typically find their contact number on their official website under "Help & Support" or "Contact Us."
Be prepared to verify your identity. Have your account number, Social Security Number, and other personal details ready.
Clearly state your intention to close the account.
Secure Message (Online Portal): If you prefer written communication, you might be able to send a secure message through your Merrill Edge online account. This provides a written record of your request.
In-Person (Bank of America Branches): Since Merrill Edge is part of Bank of America, you might be able to get assistance at a Bank of America branch. However, for specific brokerage account closures, speaking directly with Merrill Edge staff (via phone) is usually more efficient.
Sub-heading: Confirming Zero Balance and Final Steps
Double-check your account balance. Ensure it's truly zero after all withdrawals or transfers have completed and settled.
Ask for a confirmation of closure. Request a written confirmation (via email or mail) that your account has been officially closed. This serves as your record.
Unsubscribe from any services. If you had any paid subscriptions through Merrill Edge (e.g., premium market data), ensure they are canceled to avoid future charges.
Step 4: Post-Closure – What to Expect and Monitor
Even after you've been told your account is closed, there are a few things to keep in mind.
Sub-heading: Final Statements and Tax Documents
Expect final statements. You may receive a final statement reflecting the closure.
Tax documents: If you sold securities or received income, you will receive relevant tax forms (e.g., 1099-B for sales, 1099-DIV for dividends) in the next tax season. Keep these for your records.
Sub-heading: Monitoring for Any Lingering Issues
Check your linked bank account. Ensure all withdrawn funds have successfully arrived.
Keep records. Retain copies of any communication with Merrill Edge regarding your closure request.
10 Related FAQ Questions
Here are 10 frequently asked questions about canceling a Merrill Edge account, with quick answers:
How to check my Merrill Edge account balance?
You can check your Merrill Edge account balance by logging into your account on the Merrill Edge website or through their mobile app. The balance is typically displayed on your account dashboard or portfolio summary.
How to sell all my assets in Merrill Edge?
To sell your assets, log in to your Merrill Edge account, navigate to your portfolio or holdings, select the specific securities you wish to sell, and place sell orders. Ensure you select "market order" or "limit order" as appropriate for your needs.
How to transfer funds out of Merrill Edge to my bank account?
You can transfer funds out of Merrill Edge to a linked bank account via an ACH transfer. Log in, go to the "Transfers" or "Withdrawals" section, select ACH, and follow the prompts. You can also request a wire transfer or a physical check.
How to perform an ACATS transfer from Merrill Edge to another broker?
Contact your new brokerage firm. They will initiate the ACATS transfer and provide you with the necessary forms to authorize the transfer of your assets from Merrill Edge to your new account.
How to close an IRA account at Merrill Edge without penalty?
To avoid penalties, you should perform a direct rollover of your IRA funds to another qualified retirement account (like another IRA or a 401(k)). This typically means the funds go directly from Merrill Edge to the new custodian without passing through your hands.
How to contact Merrill Edge customer service for account closure?
You can contact Merrill Edge customer service by phone. Their contact number is usually found on their official website under the "Help & Support" or "Contact Us" sections. You may also be able to send a secure message through your online account.
How to get a confirmation of account closure from Merrill Edge?
When you speak with a Merrill Edge representative to confirm closure, specifically request a written confirmation of your account being closed. This can often be sent via email or mail.
How to handle tax implications after closing my Merrill Edge account?
If you sold assets, you will receive tax documents (e.g., Form 1099-B) from Merrill Edge in the next tax season. If you withdrew from retirement accounts, you may receive Form 1099-R. It's advisable to consult with a tax professional regarding any tax implications.
How to ensure all my funds have settled before withdrawing from Merrill Edge?
Merrill Edge's platform will typically show "settled cash" vs. "unsettled cash." Ensure all your trade settlements are complete and the funds are reflected as "settled" before initiating a withdrawal. Most stock trades settle in one business day (T+1).
How to avoid unexpected fees when closing a Merrill Edge account?
Merrill Edge generally does not charge inactivity or account closure fees. However, be aware of potential fees for wire transfers if you choose that withdrawal method. Also, confirm with your new broker if they have any incoming transfer fees if you're using ACATS.
