The Grand Farewell: A Comprehensive Guide to Closing Your Merrill Edge Account Online
Are you considering consolidating your investments, moving to a new brokerage, or simply simplifying your financial life? Closing an investment account can seem daunting, but with Merrill Edge, while a direct "close account" button online isn't available, the process can largely be managed digitally and with proper preparation. This extensive guide will walk you through every step to ensure a smooth and successful closure of your Merrill Edge account.
Hey there! Thinking of closing your Merrill Edge account? You're not alone! Many investors reach a point where they need to make changes to their brokerage relationships. Whether it's to streamline your portfolio, explore new investment opportunities, or simply reduce the number of accounts you manage, knowing the proper steps is crucial. This guide is designed to empower you with the knowledge to navigate the process effectively. Let's get started!
The Reality Check: "Online" vs. "Digitally Managed"
It's important to clarify upfront: Merrill Edge, like many traditional brokerages, generally does not offer a single "close account" button you can click online to instantly shut down your investment account. The process typically involves a combination of online actions (like liquidating assets and transferring funds) and often a final phone call or written correspondence. However, much of the preparatory work can indeed be done conveniently through their online platform.
Step 1: Preparation is Key – Get Your Account Ready for Departure
Before you even think about initiating the closure, a significant amount of groundwork needs to be laid. This initial phase is critical to avoid delays, unexpected fees, or complications.
Sub-heading 1.1: Zero Out Your Balance (The Right Way!)
This is perhaps the most important step. Your account must have a zero balance for it to be closed. This involves two main components:
Selling Off All Securities:
Identify your holdings: Log in to your Merrill Edge account and review every single security you hold – stocks, bonds, mutual funds, ETFs, options, etc.
Execute sell orders: Place sell orders for all your investments. Be mindful of market hours and potential trading fees.
Allow for settlement: Remember that stock trades typically settle in two business days (T+2). This means the cash from your sales won't be immediately available. Do not try to withdraw or transfer funds until they have fully settled.
Consider tax implications: Selling securities can trigger capital gains or losses. Consult a tax professional if you have significant gains or complex tax situations.
Withdrawing All Cash:
Check your cash balance: Once all securities have settled, your account should reflect a cash balance.
Initiate a withdrawal: Merrill Edge generally offers bank transfers (ACH) for withdrawals.
Log in to your online account.
Navigate to the "Transfer" or "Withdraw" section.
Select your Merrill Edge account as the "Transfer from" account.
Choose your linked external bank account as the "Transfer to" account. If you haven't linked one, you'll need to do so, which may take a few days for verification.
Enter the full amount of your cash balance.
Be patient: Bank transfers can take 3 or more business days to complete. Do not proceed with the final closure steps until the funds have fully cleared your Merrill Edge account and appeared in your external bank account.
Sub-heading 1.2: Transferring Assets (If Not Liquidating)
Instead of selling everything, you might prefer to transfer your investments "in kind" to another brokerage account. This is known as an ACATS (Automated Customer Account Transfer Service) transfer.
Initiate the transfer from the receiving brokerage: This is crucial! You typically initiate an ACATS transfer from the new brokerage where you want your assets to go. They will provide you with the necessary forms and instructions.
Provide Merrill Edge account details: You'll need your Merrill Edge account number, account type (e.g., individual, joint, IRA), and possibly a recent statement.
Allow for transfer time: ACATS transfers can take anywhere from a few business days to a couple of weeks, depending on the complexity of your holdings and the efficiency of both brokerages. Merrill Edge may charge a transfer-out fee, so be sure to inquire about this.
Sub-heading 1.3: Cancel Recurring Transactions and Direct Deposits
If your Merrill Edge account is linked to any recurring payments, direct deposits, or bill pay services, you must cancel them and set up alternative arrangements with your new account.
Review your account activity: Check your transaction history for any automated debits or credits.
Update payees/payers: Contact any companies or individuals that send or receive funds from your Merrill Edge account and provide them with your new account information.
Turn off features: Disable any linked services like "Keep the Change" or overdraft protection if applicable.
Sub-heading 1.4: Download Important Documents
Once your account is closed, you may lose access to your past statements and tax documents.
Download all historical statements: Go to the "Statements" or "Documents" section of your online account and download all available statements, tax forms (1099s, etc.), and trade confirmations.
Save them securely: Keep these documents in a safe and accessible place for your records, especially for tax purposes.
Sub-heading 1.5: Update Contact Information
Ensure your mailing and email addresses are current in your Merrill Edge profile. They will send you a final confirmation and statement.
Step 2: The Official Notification – Reaching Out to Merrill Edge
Once your account balance is zero (or the ACATS transfer is complete), and you've taken care of all preparatory steps, it's time to formally inform Merrill Edge of your intention to close the account. While you can't click a button, this step often involves a phone call.
Sub-heading 2.1: The Preferred Method – Calling Customer Service
Merrill Edge explicitly states that for account closure, especially if you don't live near a financial center, you should contact their customer service.
Merrill Edge Self-Directed Clients: Call 1.877.653.4732
Merrill Advisory Center Clients: Call 1.888.654.6837
Prepare your information: Have your account number and personal identification ready.
State your intention clearly: Inform the representative that you wish to close your account and confirm that the balance is zero (or the transfer is complete).
Be prepared for questions: They might ask for your reasons for closing or try to retain your business. Politely reiterate your decision.
Request a confirmation: Ask the representative for an email or letter confirming your account closure request. Note down the representative's name and the date/time of your call.
Sub-heading 2.2: Alternative: Written Request (Less Common for Online Users)
While less common for "online" closures, you can submit a written request. This is typically used for specific account types or if you prefer a paper trail.
For checking/savings accounts (if linked to Merrill Edge for cash management): You can mail a written request to: Bank of America FL1-300-03-15 PO Box 25118 Tampa, FL 33622-5118 If your balance was over $25,000, your letter might need to be notarized.
For credit card accounts (if linked): Bank of America P.O. Box 982234 El Paso, TX 79998-2234
Note: For investment accounts, calling is generally the most efficient and recommended method, as it allows for real-time verification and discussion.
Step 3: Finalizing the Process – What to Expect After Your Request
After you've contacted Merrill Edge, there are a few more things to anticipate and confirm.
Sub-heading 3.1: Confirmation of Closure
Email notification: If Merrill Edge has your email address on file, they will typically send you an email once your account has been officially closed.
Final statement: You will receive a final statement in the mail. Review this carefully to ensure there are no unexpected transactions or lingering balances. If anything looks amiss, contact them immediately.
Sub-heading 3.2: Account Access
Once closed, you will no longer have online access to your Merrill Edge account. This is why downloading your statements beforehand (Step 1.4) is so important.
Sub-heading 3.3: Destroy Associated Cards and Checks
If you had any debit cards, credit cards, or checkbooks associated with your Merrill Edge Cash Management Account (CMA) or other linked accounts, remember to destroy them securely once the account is confirmed closed.
Important Considerations & Potential Issues
Negative Balances: If your account has a negative balance, you will need to pay it in full before Merrill Edge can close it. Contact them to arrange payment.
Fees: Be aware of potential fees. While Merrill Edge generally has $0 fees for basic withdrawals, there might be fees for wire transfers or outgoing ACATS transfers. Inactivity fees can also apply if you leave a small balance in an account for a long time without activity, though this is less common with direct closure requests.
IRA/CD Accounts: The process for closing IRA or CD accounts might have specific tax implications or early withdrawal penalties. It's highly recommended to speak with a Merrill Edge representative and potentially a financial advisor or tax professional before closing these types of accounts.
Managed Accounts: If you have a Merrill Lynch advisory account (not self-directed Merrill Edge), the closure process might be different and involve your financial advisor.
Residency: Merrill Edge may close accounts if you reside outside the U.S. for an extended period, as they are generally for U.S. residents. Ensure your residency status aligns with their policies.
Unclaimed Property (Escheatment): If a small balance is left in a dormant account for too long, it may be escheated (turned over) to your state's unclaimed property division. This is another reason to zero out your account completely.
10 Related FAQ Questions (How to...)
Here are some quick answers to common questions about closing a Merrill Edge account:
How to confirm my Merrill Edge account balance is zero? Log in to your Merrill Edge account online and navigate to your account summary or balances section. Ensure all holdings show a zero value and there is no cash balance remaining. If you recently sold securities, allow for 2 business days for trades to settle.
How to transfer funds out of my Merrill Edge account? After liquidating assets, initiate an ACH transfer from your Merrill Edge online account to a linked external bank account. Go to the "Transfer" or "Withdraw" section, select your Merrill Edge account as the source, and your bank account as the destination.
How to avoid fees when closing my Merrill Edge account? To avoid most fees, ensure you completely liquidate all assets and transfer out all cash via ACH. Be aware that outgoing ACATS transfers (transferring assets to another broker) may incur a fee.
How to know if my Merrill Edge account is officially closed? Merrill Edge typically sends an email confirmation once the account is officially closed. You will also receive a final statement in the mail. Check these communications for confirmation.
How to get my tax documents after closing my Merrill Edge account? It's crucial to download all historical statements and tax documents (like 1099s) before closing your account, as you may lose online access. Otherwise, you may need to contact customer service to request copies.
How to close an IRA account with Merrill Edge? Closing an IRA involves specific rules and potential tax implications. It's highly recommended to speak with a Merrill Edge representative and a tax advisor to understand the consequences and process for your specific IRA type. You generally have options to roll it over to another IRA custodian without penalty.
How to transfer assets to another brokerage from Merrill Edge? Initiate an ACATS (Automated Customer Account Transfer Service) transfer from the receiving brokerage (the new firm you're moving to). They will provide the necessary forms and handle the transfer from Merrill Edge.
How to contact Merrill Edge customer service for account closure? For Merrill Edge Self-Directed accounts, call 1.877.653.4732. For Merrill Advisory Center accounts, call 1.888.654.6837.
How to destroy old Merrill Edge cards and checks? Once you've confirmed your account is fully closed and all funds are out, securely shred or cut up any debit cards, credit cards, or unused checks associated with the account.
How to handle recurring payments linked to my Merrill Edge account? Before closing, identify and cancel all recurring payments, direct deposits, or bill pay services linked to your Merrill Edge account. Update the originating companies or individuals with your new bank account details.
