Your Comprehensive Guide to Closing Your Edward Jones Account
Thinking about closing your Edward Jones account? Whether you're consolidating your finances, moving to a new advisor, or simply changing your investment strategy, the process can seem a little daunting. But don't worry, we're here to walk you through every step. This lengthy guide will demystify the process and equip you with the knowledge to close your Edward Jones account smoothly and efficiently.
Let's begin! Are you ready to take control of your financial future and navigate this transition with confidence? If so, read on!
Step 1: Understand Your Reasons and Options
Before you dive into the specifics of closing your Edward Jones account, it's crucial to understand why you're doing it and what alternatives you might have. This initial reflection can save you time and potential headaches down the road.
Sub-heading: Why Are You Closing?
- Consolidation: Are you looking to bring all your investments under one roof with a new financial institution?
- Advisor Change: Is it simply a desire to work with a different financial advisor, perhaps one with a different fee structure or investment philosophy?
- Investment Strategy Shift: Have your financial goals or risk tolerance changed, prompting a move to a platform that better suits your new strategy?
- Fees: Are you concerned about the fees associated with your Edward Jones account? It's worth reviewing their fee schedules to understand all potential costs.
- Dissatisfaction: Are you simply unhappy with the service or performance you've received?
Sub-heading: Explore Alternatives Before You Close
Sometimes, closing an account isn't the only solution. Consider these options first:
- Transferring to another Edward Jones Advisor: If you like Edward Jones but not your current advisor, you might be able to switch to a different one within the firm.
- Adjusting your investment strategy within Edward Jones: If your goals have changed, your current advisor might be able to help you adjust your portfolio without needing to close the account entirely.
- Transferring a portion of your assets: You don't always have to close the entire account. You might be able to transfer specific assets or a portion of your funds to another institution while keeping some with Edward Jones.
Step 2: Gather Essential Information and Documents
Once you're firm on your decision to close your account, the next critical step is to gather all the necessary information and documents. Being prepared will significantly streamline the process.
Sub-heading: Key Information You'll Need
- Edward Jones Account Number(s): This is paramount. You'll need it for all correspondence and forms.
- Contact Information for Your Edward Jones Financial Advisor: Your advisor is your primary point of contact and will guide you through much of this process.
- Current Account Statements: Having your most recent statements will provide an accurate snapshot of your holdings and any outstanding balances.
- Details of the Receiving Institution (if transferring): If you're transferring assets to another brokerage, bank, or retirement account, you'll need their account number, routing information, and any specific transfer forms they require.
- Personal Identification: Be prepared to provide government-issued ID if requested for verification purposes.
Sub-heading: Important Documents to Review
- Edward Jones Account Agreement: This document outlines the terms and conditions of your account, including any closure policies or fees.
- Schedule of Fees: Edward Jones, like many financial institutions, may charge fees for closing an account or transferring assets out. Review their "Schedule of Fees" document, which is usually available on their website or by asking your advisor. Common fees include an "account closure fee" or "transfer out fee," which can be around $95 or more for total transfers. Note that sometimes these fees are waived under certain conditions, such as if the account has been open for a certain period or has a balance below a certain threshold.
- Tax Documents (e.g., Consolidated 1099): While you might not need these for the closure itself, understanding your tax implications (e.g., capital gains/losses from selling assets) is important, especially if you're liquidating investments.
Step 3: Contact Your Edward Jones Financial Advisor
This is often the most direct and efficient way to initiate the account closure process. Your financial advisor is there to assist you.
Sub-heading: Scheduling a Conversation
- Call or Email: Reach out to your Edward Jones financial advisor by phone or email to schedule a dedicated conversation about closing your account.
- Be Clear and Concise: Clearly state your intention to close the account. While they might try to understand your reasons or offer alternatives, be firm in your decision.
Sub-heading: Discussing Your Options (Liquidation vs. Transfer)
During this conversation, you'll need to discuss how you want your assets handled. There are generally two main approaches:
- Option A: Liquidate All Assets and Receive Cash.
- This involves selling all your investments (stocks, mutual funds, ETFs, etc.) within your Edward Jones account.
- Once liquidated, the cash proceeds can be transferred to a linked bank account or sent to you via check.
- Be aware of potential tax implications for capital gains or losses when selling investments.
- Option B: Transfer Assets "In-Kind" to Another Institution.
- This means transferring your investments as they are (e.g., shares of XYZ stock) directly to another brokerage account without selling them.
- This is often preferred to avoid immediate tax implications from selling and then repurchasing investments.
- Ensure the receiving institution can accept all your current holdings. Some less common investments might not be transferable.
- Your new institution often initiates this type of transfer, but you'll still need to work with Edward Jones.
Step 4: Complete the Necessary Paperwork
Regardless of whether you liquidate or transfer, there will be forms to complete.
Sub-heading: Obtaining and Filling Out Forms
- Edward Jones Forms: Your financial advisor will provide you with the specific account closure forms. These might vary depending on the type of account (e.g., brokerage, IRA, 529 plan).
- Receiving Institution Forms (for transfers): If you're transferring assets, the receiving institution will often have their own "Transfer of Assets (TOA)" form that needs to be completed. They will typically initiate the transfer request with Edward Jones.
- Accuracy is Key: Fill out all forms accurately and completely. Any errors or omissions can lead to delays. Double-check all account numbers, names, and signatures.
Sub-heading: Signature Requirements
- Signatures: Ensure all account holders sign the necessary documents. For joint accounts, both parties will likely need to sign.
- Medallion Signature Guarantee: In some cases, especially for larger transfers or changes in ownership, a Medallion Signature Guarantee might be required. Your bank or credit union can usually provide this. Check with your Edward Jones advisor if this is necessary for your specific situation.
Step 5: Address Any Outstanding Balances or Debts
Before your account can be fully closed, any outstanding issues need to be resolved.
Sub-heading: Margin Loans or Other Debts
- Pay Off Margin Loans: If you have a margin account with an outstanding loan, you will need to pay this off before the account can be closed or transferred.
- Resolve Negative Balances: Ensure there are no negative cash balances in your account.
Sub-heading: Final Distributions
- Last Dividends or Interest: Consider the timing of your closure. If you close your account right before a dividend payout, that payment might still be directed to your Edward Jones account before it's officially closed. Your advisor can advise on this.
- Required Minimum Distributions (RMDs): If you have a retirement account (like an IRA) and are subject to RMDs, ensure you've taken your RMD for the year before closing the account or transferring it, especially if it's a direct rollover.
Step 6: Confirm Account Closure and Final Statements
Once you've submitted all paperwork and addressed any outstanding items, the waiting period begins.
Sub-heading: Monitoring the Transfer/Liquidation
- Stay in Touch: Keep in regular contact with your Edward Jones financial advisor and/or the receiving institution (if transferring) for updates on the progress.
- Track Your Transfer: If you're transferring assets, your new institution may offer an online portal to track the transfer's status. Transfers can take anywhere from a few days to several weeks, depending on the complexity and the institutions involved.
- Confirm Liquidation: If you opted for liquidation, confirm with your Edward Jones advisor that all assets have been sold and the proceeds sent to your designated account.
Sub-heading: Final Statements and Tax Documents
- Zero Balance Statement: Once the account is officially closed, you should receive a final statement showing a zero balance. Keep this for your records.
- Tax Reporting: You will receive tax documents (e.g., Consolidated 1099, 1099-R) from Edward Jones for the year your account was closed, reflecting any sales or distributions. These are crucial for your tax filing.
Step 7: Update Beneficiaries and Estate Plans (If Applicable)
Closing an account is a good opportunity to review your overall financial planning.
Sub-heading: Review Beneficiary Designations
- If you had beneficiaries named on your Edward Jones account, ensure you update your beneficiary designations on your new accounts to reflect your wishes.
Sub-heading: Estate Planning
- Inform your estate planner or attorney about the change in your financial accounts so they can update your will, trusts, or other estate planning documents accordingly.
10 Related FAQ Questions
Here are 10 common "How to" questions related to closing an Edward Jones account, with quick answers:
How to find my Edward Jones account number? Your Edward Jones account number can typically be found on your account statements, online through Edward Jones Account Access, or by contacting your financial advisor.
How to transfer investments from Edward Jones to another brokerage? You generally initiate an "in-kind" transfer by filling out a Transfer of Assets (TOA) form with your new brokerage, who then sends the request to Edward Jones. Your Edward Jones advisor can also provide guidance.
How to get a cash disbursement when closing my Edward Jones account? Once your investments are liquidated, Edward Jones can typically send the cash proceeds via electronic funds transfer (ACH) to a linked bank account or by mailing a check. Discuss your preference with your advisor.
How to avoid fees when closing my Edward Jones account? While some fees are standard, Edward Jones may waive transfer-out fees under certain conditions, such as if your account balance is below a specific threshold or if it has been open for a long period. Always inquire with your advisor about potential fee waivers.
How to contact Edward Jones customer service for account closure questions? You should primarily contact your Edward Jones financial advisor. If you cannot reach them, you can try Edward Jones Online Client Support at 800-441-5203 (Monday-Friday, 7 a.m. - 9 p.m. CT; Saturday & Sunday, 8 a.m. - 4 p.m. CT) or Client Relations at 800-441-2357 (Monday-Friday, 7 a.m. - 5:30 p.m. CT).
How to get a Medallion Signature Guarantee for my Edward Jones transfer? A Medallion Signature Guarantee is typically provided by banks, credit unions, or other financial institutions where you have an account. Contact your personal bank to inquire about their process.
How to check the status of my Edward Jones account closure or transfer? Stay in communication with your Edward Jones financial advisor. If you initiated a transfer to a new institution, that institution may also provide updates or an online tracking tool.
How to handle RMDs (Required Minimum Distributions) when closing an Edward Jones IRA? Ensure you've taken your RMD for the current year before closing your IRA or performing a direct rollover to another qualified retirement account. Consult your financial advisor for specific guidance.
How to get my final tax documents from Edward Jones after closing my account? Edward Jones will mail your final tax documents (e.g., Consolidated 1099, 1099-R) to your address on file, typically by January 31st of the following year. You may also be able to access them through their online portal for a period.
How to change my mind after initiating the Edward Jones account closure process? It's possible to halt the process if it hasn't been fully completed. Immediately contact your Edward Jones financial advisor to discuss your desire to stop the closure or transfer. The sooner you act, the more likely it is that they can reverse the action.