Embarking on a financial journey often involves optimizing your investments and finding platforms that best suit your evolving needs. If you're considering moving your assets from Edward Jones to Fidelity, you're looking at a common process called an Automated Customer Account Transfer Service (ACATS). This guide will walk you through each step, ensuring a smooth transition of your hard-earned funds.
Ready to take control of your financial future? Let's dive in!
Step 1: Understand Why You're Transferring and What You're Transferring
Before you initiate any transfer, it's crucial to understand your motivations and precisely what assets you intend to move. This clarity will help you navigate the process efficiently and avoid potential hiccups.
Why the Move?
- Cost Savings: Are Edward Jones fees higher than Fidelity's for the types of investments you hold? Fidelity is known for its low-cost index funds and ETFs, and often $0 commission for online stock trades.
- Investment Options: Does Fidelity offer a wider range of investment products that better align with your financial goals? Perhaps you're looking for more diverse ETFs, specific mutual funds, or access to certain trading tools.
- Customer Service & Platform Experience: Do you prefer Fidelity's online platform, mobile app, or their customer support approach? User experience can significantly impact your investing comfort.
- Consolidation: Are you consolidating multiple accounts to simplify your financial life? Having all your investments under one roof can make tracking and managing them much easier.
What Assets Are You Transferring?
- Account Type: Are you moving a taxable brokerage account, an IRA (Traditional, Roth, SEP, SIMPLE), a 401(k) rollover, or another type of account? The process can vary slightly depending on the account type.
- Investment Holdings: What do you currently hold at Edward Jones?
- Stocks and ETFs: These are generally straightforward to transfer "in kind" (meaning they move as they are, without being sold).
- Mutual Funds: Some mutual funds are proprietary to Edward Jones and might not be transferable to Fidelity. In such cases, you might have to sell them and transfer the cash, which could trigger a taxable event in a non-retirement account. Fidelity's FundsNetwork lists funds that are not proprietary and can be transferred.
- Bonds and CDs: These can usually be transferred in kind, but it's good to confirm.
- Alternative Investments: Less liquid or specialized investments may require different handling.
- Full vs. Partial Transfer: Do you want to move all your assets from Edward Jones, or just a portion? A full transfer is often simpler as it closes the Edward Jones account. A partial transfer requires you to specify which assets you want to move.
Step 2: Open and Prepare Your Fidelity Account
This is your receiving account, so it needs to be ready to accept your assets.
Open a New Fidelity Account (if you don't have one)
- Visit the Fidelity website (Fidelity.com) and select "Open an Account."
- Choose the appropriate account type that matches your Edward Jones account (e.g., if you're transferring a Traditional IRA from Edward Jones, open a Traditional IRA at Fidelity). Mismatching account types can lead to complications and potential tax consequences.
- Provide all necessary personal information, including your Social Security Number, contact details, and banking information for any initial funding or future transfers.
- Important: Ensure the ownership registration (e.g., individual, joint, trust) on your new Fidelity account exactly matches the ownership registration on your Edward Jones account. Even a minor discrepancy can cause delays or rejections.
Gather Edward Jones Account Information
You'll need specific details from your Edward Jones account to initiate the transfer. Have the following ready:
- Edward Jones account number(s)
- The exact account title (as it appears on your statement)
- A recent Edward Jones account statement (This is often required by Fidelity to verify your holdings and account details.)
- Edward Jones' contact information (though Fidelity will typically handle communication, it's good to have it on hand).
Step 3: Initiate the Transfer from Fidelity's Side (The ACATS Process)
This is the most common and generally easiest way to transfer assets. The ACATS (Automated Customer Account Transfer Service) system is designed for direct broker-to-broker transfers of securities.
Online Initiation (Recommended)
- Log in to your newly opened (or existing) Fidelity account.
- Navigate to the "Transfers" or "Move Money" section. Look for an option like "Transfer an Account to Fidelity" or "Transfer Assets from Another Firm."
- You will be guided through an online form. You'll need to:
- Select Edward Jones as the "From" institution.
- Enter your Edward Jones account number and account type.
- Indicate whether it's a full or partial transfer. If partial, you'll specify which securities to transfer.
- Digitally sign the transfer authorization form.
- Upload your most recent Edward Jones statement. This is a critical step for Fidelity to process the request accurately.
Assistance from a Fidelity Representative
- If you prefer a more guided approach or encounter any issues online, you can call Fidelity's customer service for assistance with asset transfers. Their representatives are well-versed in the ACATS process and can help you complete the necessary forms.
- You might be asked to fill out a paper "Transfer of Assets" form and mail it in with a copy of your Edward Jones statement.
What Fidelity Does Behind the Scenes:
Once you initiate the transfer, Fidelity will:
- Generate a Transfer Request: They will create an ACATS transfer request based on the information you provided.
- Send Request to Edward Jones: This request is sent electronically to Edward Jones.
- Edward Jones Review: Edward Jones will review the request to ensure all information matches their records. They will also check for any outstanding issues (e.g., negative cash balances, margin calls, ineligible assets).
- Transfer of Assets: If approved, Edward Jones will send your specified assets (or all assets for a full transfer) to Fidelity.
- Reconciliation: Fidelity will receive the assets and reconcile them with your new account.
Step 4: Monitor Your Transfer and Address Any Issues
Transfers don't always happen instantaneously. It's crucial to keep an eye on the progress.
Track the Transfer
- Fidelity's Online Status: Fidelity usually provides a "Pending Transfers" or "Transfer Status" page in your online account where you can track the progress of your transfer. This will give you an estimated completion date and show you which assets have been moved.
- Edward Jones Statement: Keep an eye on your Edward Jones statements to see if assets are being removed.
- Typical Timeline: Most ACATS transfers complete within 5-10 business days. However, it can take longer (up to 3-5 weeks or even more) if there are complications, such as:
- Mismatched account information.
- Ineligible assets (e.g., proprietary mutual funds).
- Outstanding fees or margin balances.
- Foreign securities or limited partnerships.
Be Proactive if There are Delays
- If your transfer is taking longer than expected, first check the online status at Fidelity.
- If no clear reason is provided, contact Fidelity's transfer department. They are the ones who initiated the request and can investigate the status with Edward Jones.
- If Fidelity identifies an issue that requires your action (e.g., signing an additional form, addressing an ineligible asset), respond promptly.
Step 5: Verify Your Assets and Close the Edward Jones Account (if applicable)
Once the transfer is complete, there are a couple more important steps.
Verify All Assets Have Transferred
- Review Your Fidelity Statement: Compare the assets and cash balance in your new Fidelity account with your final Edward Jones statement.
- Cost Basis Information: It can take up to 15 calendar days after the assets settle for the cost basis information to be transferred. Until then, your average cost and total return values may not be accurate in your Fidelity account. This is normal, so don't be alarmed.
Close Your Edward Jones Account (for full transfers)
- If you initiated a full transfer, your Edward Jones account should automatically close once all assets and any remaining cash are moved.
- However, it's a good practice to confirm with Edward Jones that the account is indeed closed and has a zero balance.
- Be aware of potential account closure fees. While Fidelity generally does not charge fees to transfer assets out, Edward Jones might have a small account closure fee, especially for IRAs (e.g., a $50 account closure fee for an IRA). In some cases, Fidelity may reimburse transfer fees, but it's not guaranteed, so confirm with Fidelity if this is a concern for you.
Potential Fees and Considerations
- Edward Jones Transfer Out Fees: Edward Jones may charge a fee for transferring assets out, especially for full account closures. It's important to check with your Edward Jones advisor or their fee schedule for exact amounts.
- Fidelity Transfer In Fees: Fidelity typically does not charge a fee to receive assets via an ACATS transfer.
- Proprietary Mutual Funds: As mentioned, some Edward Jones mutual funds might be proprietary and not transferable to Fidelity. You would need to liquidate these, which could have tax implications in a taxable account.
- Tax Implications:
- ACATS transfers are generally not taxable events if you are moving assets "in kind" between like-registered accounts (e.g., Traditional IRA to Traditional IRA, taxable brokerage to taxable brokerage).
- Liquidating assets in a taxable account before transfer would be a taxable event (capital gains or losses).
- Direct rollovers of retirement accounts (like 401(k) to IRA) are generally not taxable if done correctly. If you receive a check made out to you personally, you usually have 60 days to deposit it into an IRA to avoid taxes and penalties.
10 Related FAQ Questions
How to initiate an ACAT transfer?
An ACAT transfer is initiated by the receiving brokerage firm (Fidelity, in this case). You simply fill out their transfer request form, typically online, providing details of your Edward Jones account.
How to avoid taxes when transferring investments?
To avoid taxes, ensure you perform an "in-kind" transfer (moving investments as they are, not selling them) between like-registered accounts (e.g., Traditional IRA to Traditional IRA, taxable brokerage to taxable brokerage).
How to transfer mutual funds from Edward Jones to Fidelity?
Fidelity can generally accept many mutual funds. However, Edward Jones may have proprietary mutual funds that Fidelity cannot hold. In such cases, you might need to sell the mutual funds at Edward Jones before transferring the cash proceeds. Always confirm with Fidelity if a specific mutual fund is transferable.
How to transfer an IRA from Edward Jones to Fidelity?
Open a corresponding IRA account at Fidelity (e.g., Traditional IRA at Fidelity for a Traditional IRA at Edward Jones). Then, initiate an ACATS transfer from Fidelity, specifying your Edward Jones IRA account details. This is typically a direct trustee-to-trustee transfer, avoiding taxes and penalties.
How to transfer a taxable account from Edward Jones to Fidelity?
Open a taxable brokerage account at Fidelity with the exact same ownership registration as your Edward Jones account. Then, initiate an ACATS transfer through Fidelity's online platform or with their assistance.
How to check the status of my asset transfer to Fidelity?
You can typically check the status of your transfer by logging into your Fidelity account and navigating to a "Pending Transfers" or "Transfer Status" section.
How to transfer stocks and ETFs from Edward Jones to Fidelity?
Stocks and ETFs are generally easy to transfer "in kind" via an ACATS transfer. Fidelity will request these assets directly from Edward Jones, and they will appear in your Fidelity account without being sold.
How to handle ineligible assets during a transfer?
If Edward Jones identifies assets that Fidelity cannot hold (e.g., proprietary mutual funds), you will likely be notified. You'll then have the option to sell those assets at Edward Jones and transfer the cash proceeds, or keep them at Edward Jones.
How long does it take to transfer funds from Edward Jones to Fidelity?
Most ACATS transfers from Edward Jones to Fidelity typically take 5 to 10 business days to complete, assuming all information is accurate and there are no complications. Some transfers might take longer, up to 3-5 weeks, especially if there are issues.
How to contact Fidelity for transfer assistance?
You can contact Fidelity's customer service directly. Their website (Fidelity.com) will usually have a "Contact Us" section with phone numbers for various departments, including asset transfers.
