Navigating Your Finances: A Comprehensive Guide to Moving Money Out of Edward Jones
Are you considering moving your investments or cash out of Edward Jones? Perhaps you're consolidating accounts, seeking lower fees, or simply exploring new investment opportunities. Whatever your reason, understanding the process is key to a smooth transition. This guide will walk you through every step, ensuring you're well-equipped to manage your financial move with confidence.
Let's start by thinking about your goals: What exactly do you want to achieve by moving your money? Are you looking to:
- Transfer your entire portfolio to another brokerage?
- Withdraw cash for a specific purpose?
- Roll over a retirement account?
- Move only a portion of your investments?
Your answer will help determine the best path forward. Ready? Let's dive in!
Step 1: Understand Your Options and What You Want to Move
Before you do anything, it's crucial to understand the different ways you can move money out of Edward Jones and which method best suits your needs. This initial assessment will save you time and potential headaches down the line.
Sub-heading: Identifying Your Edward Jones Account Type
First, clarify the type of account(s) you have with Edward Jones. This is important because the rules and procedures can vary significantly. Common account types include:
- Brokerage Accounts: These are standard investment accounts where you hold stocks, bonds, mutual funds, and ETFs.
- Retirement Accounts (IRAs, 401(k)s, etc.): These accounts have specific tax implications and rules for withdrawals and rollovers.
- Money Market Funds/Cash Balances: These are often held within your brokerage or retirement accounts.
Sub-heading: Defining Your "Move" Strategy
Do you want to:
- Full Account Transfer (ACATS Transfer): This is the most common method for moving your entire investment portfolio from Edward Jones to another brokerage without selling your investments. Your holdings are transferred "in-kind," meaning the actual securities (stocks, mutual funds, etc.) are moved, not just the cash value. This often avoids taxable events unless specific assets aren't transferable.
- Partial Account Transfer: You can choose to move only a portion of your investments to another institution while keeping the rest at Edward Jones.
- Cash Withdrawal/Transfer: If you only need to access cash, you can initiate an electronic funds transfer (ACH) to a linked bank account, request a wire transfer, or even receive a check.
- Rollover (for Retirement Accounts): If you're moving a 401(k) or IRA, a direct rollover to another qualified retirement account is typically the most tax-efficient method. This avoids taxes and penalties that can arise from a direct withdrawal.
Step 2: Research and Select Your New Destination (If Transferring Investments)
If your goal is to move your investments to a different brokerage, this is a critical step. Don't rush this decision; it can significantly impact your future investment experience.
Sub-heading: Key Factors to Consider in a New Brokerage
- Fees and Commissions: Compare trading fees, annual account maintenance fees, and any transfer-in fees. Some brokerages offer commission-free trading for stocks and ETFs.
- Investment Options: Does the new brokerage offer the specific investments you're interested in (e.g., a wider range of mutual funds, specific ETFs, alternative investments)?
- Customer Service: Read reviews and test out their customer service channels (phone, chat, email). How responsive and helpful are they?
- Tools and Resources: Do they offer robust research tools, educational materials, and user-friendly platforms (desktop and mobile)?
- Account Minimums: Are there any minimum balance requirements to open or maintain an account?
- Transfer Incentives: Some brokerages offer cash bonuses or other incentives for transferring a certain amount of assets.
Sub-heading: Opening Your New Account
Once you've chosen your new brokerage, open the account before initiating the transfer from Edward Jones. This will ensure a smooth process and a ready destination for your assets. You'll typically need to provide personal information, funding details, and possibly proof of identity.
Step 3: Initiate the Transfer Process with Your New Institution
This might sound counterintuitive, but the institution you are moving to usually initiates the transfer. They will handle the majority of the paperwork and communication with Edward Jones on your behalf.
Sub-heading: Gathering Necessary Information
Before contacting your new brokerage, have the following information from your Edward Jones account readily available:
- Your Edward Jones account number(s).
- The exact account type (e.g., Individual Brokerage, Traditional IRA).
- Your Edward Jones financial advisor's contact information (if applicable).
- A recent Edward Jones account statement (this will have all the necessary details).
Sub-heading: Completing the ACATS Transfer Form
Your new brokerage will provide you with a Transfer of Assets (TOA) form, often referred to as an ACATS (Automated Customer Account Transfer Service) form.
- Fill out this form carefully and accurately. Any discrepancies between your Edward Jones account information and the information on the TOA form can cause significant delays or rejection of the transfer.
- Indicate whether it's a full or partial transfer. If partial, specify exactly which assets you want to move.
- Sign the form as required.
Sub-heading: Submitting the Form
Submit the completed ACATS form to your new brokerage. They will then send it to Edward Jones to request the transfer of assets.
Step 4: Prepare for Potential Edward Jones Fees and Non-Transferable Assets
While the ACATS system is designed to be efficient, there are a few things to be aware of concerning Edward Jones specifically.
Sub-heading: Understanding Edward Jones' Transfer Fees
Edward Jones, like many brokerages, may charge fees for outgoing transfers.
- Edward Jones may charge a fee for a full external transfer of an account. Based on publicly available fee schedules, this could be around $135 for a full external transfer and $50 for a partial external transfer.
- Be sure to confirm the exact fees with your Edward Jones financial advisor or by reviewing their latest fee schedule.
- Important Note: Many receiving brokerages will offer to reimburse your transfer fees if you transfer a significant amount of assets. It's always worth asking your new brokerage about this!
Sub-heading: Identifying Non-Transferable Assets
Not all investments are universally transferable. Some assets that might be proprietary to Edward Jones or have specific restrictions may not be able to be transferred in-kind. These could include:
- Certain proprietary mutual funds or other investments offered exclusively by Edward Jones.
- Bankrupt securities or penny stocks.
- Restricted stocks or illiquid investments.
If you have such assets, you may have a few options:
- Sell them within your Edward Jones account before the transfer and have the cash proceeds transferred. Be mindful of potential tax implications if you sell investments for a gain.
- Keep them at Edward Jones if you don't mind maintaining an account there for those specific holdings.
- Discuss alternatives with both your Edward Jones advisor and your new brokerage's representative.
Step 5: Monitor the Transfer Progress and Confirm Completion
The transfer process can take some time, so patience is key.
Sub-heading: Tracking the Transfer
- Your new brokerage should provide you with a way to track the status of your transfer. This could be through their online portal or by contacting their customer service.
- Typical ACATS transfers can take anywhere from 5 to 10 business days, though some may be quicker or longer depending on the complexity of the account and any issues that arise.
Sub-heading: Addressing Any Hold-ups
If the transfer is delayed, the first point of contact should be your new brokerage. They initiated the request and are responsible for pushing it through. They will likely communicate with Edward Jones if there are any issues.
Sub-heading: Verifying Your New Account
Once the transfer is complete, thoroughly review your new account statement with the receiving brokerage.
- Verify that all the intended assets have been transferred correctly.
- Check the cost basis information for your transferred investments. This is crucial for accurate tax reporting when you eventually sell these assets. If the cost basis is missing or incorrect, work with your new brokerage to get it updated.
Step 6: Close Your Edward Jones Account (Optional, But Recommended)
If you've transferred all your assets out of Edward Jones and have no further need for the account, it's generally a good idea to formally close it. This prevents any lingering fees or unexpected statements.
Sub-heading: Contacting Edward Jones
- Reach out to your Edward Jones financial advisor or their customer service department.
- Clearly state your intention to close the account. They may ask for a reason, but you are not obligated to provide one beyond simply stating you wish to close it.
- Confirm that there are no remaining balances or pending transactions.
- Request a confirmation in writing that your account has been successfully closed.
Frequently Asked Questions (FAQs)
How to transfer money out of Edward Jones to a bank account?
You can typically transfer cash via Electronic Funds Transfer (ACH) to a linked bank account, request a wire transfer (which may incur a fee), or ask for a physical check. Contact your Edward Jones financial advisor or use their online access if available to initiate these transfers.
How to transfer my Edward Jones IRA to another brokerage?
Initiate a direct rollover (also known as a trustee-to-trustee transfer) with your new brokerage. They will provide the necessary forms to transfer your IRA funds directly from Edward Jones to your new IRA account, avoiding taxes and penalties.
How to avoid fees when moving money out of Edward Jones?
While Edward Jones may charge outgoing transfer fees, some receiving brokerages offer to reimburse these fees if you transfer a significant amount of assets. Always inquire about this with your new brokerage. Selling investments to move cash may incur trading fees and potential capital gains taxes.
How to move my Edward Jones investments without selling them?
Perform an ACATS (Automated Customer Account Transfer Service) transfer. This moves your investments "in-kind" to the new brokerage, meaning you retain ownership of the same securities without triggering a taxable event from selling.
How to transfer mutual funds from Edward Jones to another broker?
Mutual funds can generally be transferred via an ACATS transfer. However, be aware that some proprietary Edward Jones mutual funds might not be transferable to other brokerages, in which case you would need to sell them and transfer the cash.
How to check the status of my Edward Jones transfer?
Once initiated by your new brokerage, they should provide you with a way to track the transfer's progress, often through their online portal or by contacting their transfer department.
How to roll over my Edward Jones 401(k) to an IRA?
You can generally perform a direct rollover from your Edward Jones 401(k) to a Traditional or Roth IRA at a new institution. Your new IRA provider will assist you with the paperwork to ensure a tax-free transfer.
How to get a check from my Edward Jones account?
You can request a check directly from Edward Jones for cash withdrawals. Contact your financial advisor or Edward Jones customer service to arrange this.
How to transfer a partial amount of my Edward Jones account?
When filling out the Transfer of Assets (TOA) form with your new brokerage, clearly specify that it is a partial transfer and list the exact investments or cash amount you wish to move.
How to ensure my cost basis transfers correctly from Edward Jones?
After your investments arrive at the new brokerage, carefully review your statements to ensure the cost basis information is accurate. If it's missing or incorrect, contact your new brokerage's support team and provide them with your Edward Jones statements showing the original purchase details.
