A Comprehensive Guide: Transferring Your RSUs from Morgan Stanley to Fidelity
So, you've got Restricted Stock Units (RSUs) with Morgan Stanley, and you're thinking about consolidating your investments or just prefer Fidelity's platform. That's a smart move! Streamlining your financial life can make managing your portfolio much simpler. While transferring assets might seem like a daunting task, especially with something like RSUs, it's a very common process. This guide will walk you through every step to ensure a smooth transition of your vested RSUs from Morgan Stanley to Fidelity.
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| How To Transfer Rsu From Morgan Stanley To Fidelity |
Step 1: Initiate the Thought Process - Why Transfer?
Before we dive into the "how," let's quickly consider why you're making this move. Are you looking for:
- Better consolidated view of your investments?
- Lower fees at Fidelity? (Always check the fee schedules of both firms!)
- A different user experience or research tools?
- Simpler tax reporting by having all your investments in one place?
Understanding your motivation will help reinforce your decision throughout the process. Now, let's get down to business!
Step 2: Preparation is Key - Gather Your Information
Think of this as gathering your supplies before embarking on a journey. Having everything ready beforehand will save you time and potential headaches.
Reminder: Reading twice often makes things clearer.
Sub-heading: Your Morgan Stanley RSU Account Details
- Account Number: This is crucial. Locate your Morgan Stanley account number where your RSUs are held. It's usually on your statements or accessible when you log in online.
- Account Type: Confirm the exact type of account (e.g., individual brokerage, joint, etc.).
- Morgan Stanley Online Login Credentials: You'll need access to your Morgan Stanley account to confirm details and potentially initiate or approve parts of the transfer.
Sub-heading: Your Fidelity Account Details
- Fidelity Account Number: If you already have a Fidelity brokerage account, have the number handy.
- Matching Account Type: This is incredibly important. The account type at Fidelity must match the account type at Morgan Stanley for a smooth Automated Customer Account Transfer Service (ACATS) transfer. For example, if your Morgan Stanley RSU account is an individual brokerage account, you'll need an individual brokerage account at Fidelity. If you don't have a matching account, you'll need to open one at Fidelity first.
- Fidelity Online Login Credentials: Ensure you can log in to your Fidelity account.
Sub-heading: RSU Specific Information
- Vested Shares Only: Remember, only vested RSUs can be transferred. Unvested RSUs are typically tied to your employment and cannot be transferred until they meet their vesting conditions. You will not have access to the ESPP purchase data or RSU grant data, and Fidelity will show the cost basis information that they receive from the company.
- Company Stock Symbol (Ticker): Know the ticker symbol of your company's stock.
- Cost Basis Information: While Fidelity should eventually receive this from Morgan Stanley, it's highly recommended to download or screenshot your cost basis information from your Morgan Stanley account for your records. This includes the acquisition date and the fair market value (FMV) on the vesting date for each grant. This is crucial for accurate tax reporting later.
- Any Restrictions: Check if your company has any trading restrictions or blackout periods that might affect the transfer of your shares.
Step 3: Initiate the Transfer at Fidelity (The Receiving Firm)
This is the most common and often easiest way to transfer assets. Fidelity will typically handle the heavy lifting by requesting the assets from Morgan Stanley.
Sub-heading: Online Transfer Tool
- Log in to your Fidelity.com account.
- Navigate to the "Transfers" or "Move Money" section. You might find a link like "Transfer an account to Fidelity" or "Start a transfer."
- Choose the option to transfer an external account to Fidelity.
- Select Morgan Stanley as the firm you are transferring from.
- You will be prompted to provide the Morgan Stanley account number and select the type of account you are transferring (e.g., "Brokerage Account").
- Crucially, indicate a "Full Transfer" or "Partial Transfer." For RSUs, you'll likely select a "Partial Transfer" if you only want to move your company stock and not other assets in that Morgan Stanley account. You'll then specify the exact RSU holdings (company name, ticker, number of shares) you wish to transfer.
- Review the information carefully. Double-check all account numbers and share details.
- Electronically sign the transfer request if prompted. Fidelity's system will attempt an electronic transfer (ACATS). If your firm doesn't accept electronic requests, Fidelity will provide a pre-filled "Transfer assets to Fidelity" form for you to print, sign, and mail.
Sub-heading: Alternative: Contact Fidelity Directly
If you encounter any issues with the online tool or prefer direct assistance, call Fidelity's customer service or, more specifically, their Employer Stock Plan Services line. Their representatives are well-versed in these types of transfers and can guide you through the process, potentially even initiating the request on their end.
Fidelity's Employer Stock Plan Services: 800-544-9354 (Open continuously Sun. 5 p.m.—Fri. 12 a.m. ET).
Tip: Reread the opening if you feel lost.
Step 4: Monitor the Transfer Progress
Once you've initiated the transfer, it's not an instant process. Patience is key!
Sub-heading: Tracking the Transfer
- Fidelity's "Pending Transfers" Page: Log in to your Fidelity account and look for a "Pending Transfers" or "Transfer Status" section. This is where you can track the progress of your request.
- Email Notifications: Fidelity will often send email updates as the transfer progresses.
- Expect 5-7 Business Days: Most ACATS transfers typically take 5-7 business days to complete once initiated. However, some requests, especially those involving employer-sponsored plans, might take longer.
Sub-heading: Cost Basis Information
- Morgan Stanley is required to deliver cost basis information for "covered shares" (shares acquired after January 1, 2011) to Fidelity within 15 days of the shares being received.
- Don't be alarmed if the cost basis doesn't appear immediately in your Fidelity account after the shares show up. It's a separate data transfer process.
- If the cost basis doesn't appear after a reasonable time (e.g., 2-3 weeks), or if it looks incorrect, contact Fidelity's customer service with your saved cost basis information from Morgan Stanley. You may be able to manually enter it for eligible shares, though Fidelity's received data will override it if they later receive it from Morgan Stanley.
Step 5: Confirmation and Verification
Once the transfer is complete, it's time to verify everything.
Sub-heading: Check Your Fidelity Account
- Verify Shares: Log in to your Fidelity account and confirm that the correct number of RSU shares have been transferred and are visible in your portfolio.
- Verify Cost Basis: Check that the cost basis for your RSU shares is accurately reflected. This is critical for calculating capital gains or losses when you eventually sell the shares.
- Review Statements: Keep an eye on your Fidelity statements and any final statements from Morgan Stanley to ensure all transfers are properly documented.
Sub-heading: What if Something Looks Off?
- If you notice any discrepancies, contact Fidelity immediately. Have your Morgan Stanley statements and any transfer confirmation numbers ready to provide to the representative.
Potential Challenges & Important Considerations
- Unvested RSUs: As mentioned, unvested RSUs cannot be transferred. They will remain with Morgan Stanley (or your company's plan administrator) until they vest.
- Fees: While Fidelity generally doesn't charge for incoming transfers, Morgan Stanley might charge an Account Transfer (ACATS) fee. This can be around $95 per account transfer. Check Morgan Stanley's fee schedule or contact them to confirm any outgoing transfer fees. Sometimes, the receiving brokerage (Fidelity, in this case) may reimburse these fees if you ask, especially for larger transfers. It never hurts to ask!
- Tax Implications: The act of transferring vested RSUs "in-kind" (meaning you're moving the actual shares, not selling them for cash) generally does not trigger a taxable event. However, you've already paid ordinary income tax on the fair market value of the shares when they vested. Any future gains or losses will be subject to capital gains tax when you sell the shares from Fidelity. It's always a good idea to consult with a tax professional to understand your specific tax situation.
- Partial vs. Full Transfer: Be very clear about whether you intend a full transfer of your entire Morgan Stanley account or just a partial transfer of specific RSU holdings.
10 Related FAQ Questions
How to initiate an RSU transfer to Fidelity online?
You can initiate an RSU transfer to Fidelity online by logging into your Fidelity.com account, navigating to the "Transfers" or "Move Money" section, and selecting the option to transfer an external account to Fidelity. You'll then specify Morgan Stanley as the sending firm and enter your account details and the specific RSU holdings you wish to transfer.
Tip: Remember, the small details add value.
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How to check the status of my RSU transfer to Fidelity?
You can check the status of your RSU transfer to Fidelity by logging into your Fidelity account and visiting the "Pending Transfers" or "Transfer Status" page. Fidelity will also typically send email notifications with updates on the transfer's progress.
How to find my Morgan Stanley RSU account number?
Your Morgan Stanley RSU account number can typically be found on your monthly or quarterly account statements, or by logging into your Morgan Stanley online account (likely through StockPlanConnect.com or Shareworks.solium.com if it's an employer-sponsored plan).
How to ensure my cost basis transfers correctly to Fidelity?
While the sending firm (Morgan Stanley) is required to send cost basis information to Fidelity within 15 days of the transfer, it's highly recommended to download or screenshot your cost basis details from Morgan Stanley before initiating the transfer. If the cost basis doesn't appear or seems incorrect after the transfer, you can contact Fidelity with your records.
QuickTip: Read actively, not passively.
How to transfer unvested RSUs?
You cannot directly transfer unvested RSUs. RSUs must vest (meet their defined conditions, typically time-based or performance-based) before they become actual shares that can be transferred. Unvested RSUs remain with your employer's stock plan administrator (Morgan Stanley, in this case) until they vest.
How to avoid fees when transferring RSUs?
While Fidelity generally doesn't charge for incoming transfers, Morgan Stanley might charge an outgoing account transfer fee (ACATS fee), often around $95. You can contact Morgan Stanley to confirm their fee schedule. Sometimes, if you're transferring a significant amount of assets, Fidelity might reimburse the outgoing transfer fee if you ask them.
How to handle tax implications of RSU transfers?
Transferring vested RSUs in-kind (shares, not cash) between brokers generally does not trigger a new taxable event. You've already paid ordinary income tax on the RSU value when they vested. Any future capital gains or losses will be calculated when you sell the shares from your Fidelity account. It's always advisable to consult with a tax professional for personalized advice.
How to match account types for a smooth RSU transfer?
To ensure a smooth ACATS transfer, the account type at Fidelity must precisely match the account type at Morgan Stanley (e.g., individual brokerage to individual brokerage, joint to joint). If you don't have a matching account at Fidelity, you will need to open one before initiating the transfer.
How to contact Fidelity's stock plan services for RSU transfers?
You can contact Fidelity's Employer Stock Plan Services at 800-544-9354. Their team is available to assist with questions and issues related to stock plan awards and transfers.
How to confirm the RSU transfer is complete?
You will know the RSU transfer is complete when the shares appear in your Fidelity brokerage account. You can verify this by logging into your Fidelity.com account and checking your portfolio holdings. You should also receive confirmation notices from both Fidelity and potentially Morgan Stanley.
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