Thinking about closing your Edward Jones account? Whether you're consolidating investments, switching advisors, or simply need to liquidate your holdings, navigating the process can feel a bit daunting. But don't worry, we're here to walk you through every step of the way.
Let's dive in and make this as smooth as possible for you!
How to Close Your Edward Jones Account: A Comprehensive Step-by-Step Guide
Closing an investment account involves more than just saying goodbye. It requires careful planning, understanding potential implications, and ensuring a seamless transition of your assets.
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| How To Close Edward Jones Account |
Step 1: Initial Assessment and Preparation – Are You Ready to Close?
Before you even pick up the phone, it's crucial to assess your current situation and gather necessary information. This is where you, the user, play the most critical role!
Reminder: Short breaks can improve focus.
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1.1 Understand Your "Why": What's motivating this decision? Are you:
- Consolidating accounts to simplify your financial life?
- Unhappy with your current advisor or the services provided?
- Moving to a different brokerage with lower fees or different investment options?
- Needing access to funds for a major life event?
- Simply liquidating your investments entirely? Your "why" will often dictate the best approach for closing the account.
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1.2 Review Your Account Statements:
- Gather recent statements: Access your Edward Jones Online Access or request paper statements to get a clear picture of your holdings. Note down all account numbers.
- Identify all asset types: Do you hold stocks, bonds, mutual funds, ETFs, annuities, or a mix? Are there any less liquid assets that might require special handling?
- Check for outstanding balances or margin loans: If you have a margin loan, it must be settled before closing the account.
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1.3 Understand Potential Fees:
- Edward Jones, like most financial institutions, may charge fees for transferring assets out or closing an account. This is often referred to as an "Account Transfer Out" fee or "Termination Fee."
- Action: Carefully review Edward Jones' current Schedule of Fees for your specific account type (e.g., Brokerage Account, Individual Retirement Account). You can usually find these on the Edward Jones website under "Disclosures" or "Account Fees." As of November 2019, a "Total transfer of an account" fee of $95.00 was listed for brokerage accounts, and $95.00 for IRAs. Note that fees can change, so always verify the latest information.
- Tip: Some accounts might have fees waived if they've been open for a certain period or if your total assets under care exceed a certain amount. It's worth asking your advisor about this.
Step 2: Contacting Your Edward Jones Financial Advisor – The Primary Point of Contact
Your Edward Jones financial advisor is your first and most important point of contact for initiating the account closure process.
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2.1 Schedule a Meeting or Call:
- Reach out to your financial advisor's office directly. You can typically find their contact information on your statements or the Edward Jones website.
- Clearly state your intention to discuss closing your account or transferring assets.
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2.2 Discuss Your Options:
- Full Transfer (ACAT Transfer): If you're moving your investments to another brokerage, this is often the most common and efficient method. Your assets (securities) are transferred in kind (as they are, without selling them) to the new institution. This can help you avoid potential tax events from selling assets.
- Liquidation and Cash Distribution: If you want to completely cash out your investments, your advisor will help you sell all holdings. The proceeds will then be distributed to you via check or electronic transfer (ACH). Be aware of the tax implications of selling appreciated assets.
- Partial Transfer/Liquidation: You might choose to transfer some assets and liquidate others.
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2.3 Inquire About Specific Requirements:
- Ask your advisor about any specific forms or procedures required for your account type (e.g., individual, joint, IRA, trust).
- Confirm the exact fees associated with your chosen method of closure.
- Ask about the estimated timeline for the closure process.
Step 3: Executing the Account Closure – The Formalities
Once you've discussed your options, it's time to put the plan into action.
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3.1 Initiate the Transfer (if applicable):
- If transferring to another brokerage: The receiving brokerage typically initiates the transfer process. You will provide them with your Edward Jones account number and other necessary details. They will then send a transfer request to Edward Jones. This is usually the smoothest way to transfer assets.
- Fill out transfer forms: Your new brokerage will provide you with the necessary "Transfer of Assets" (TOA) forms. Fill these out accurately and completely.
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3.2 Liquidation and Distribution (if applicable):
- If you're liquidating your account, your Edward Jones advisor will guide you through the process of selling your holdings.
- Choose your distribution method: Decide how you want to receive the funds – a check mailed to your address or an electronic funds transfer (ACH) to your bank account.
- Provide bank details: If opting for ACH, ensure Edward Jones has your accurate bank routing and account numbers on file.
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3.3 Sign Necessary Documents:
- You will likely need to sign authorization forms for the closure or transfer. This might involve wet signatures or electronic signatures, depending on Edward Jones' policies.
- Always read all documents carefully before signing.
Step 4: Monitoring and Follow-Up – Ensuring a Smooth Transition
The process doesn't end after you've submitted the forms. Active monitoring is key.
Tip: Note one practical point from this post.
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4.1 Track the Progress:
- For transfers: Your new brokerage should keep you updated on the transfer status. You can also follow up with your Edward Jones advisor.
- For liquidations: Confirm when assets have been sold and when the funds have been disbursed.
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4.2 Confirm Account Closure:
- Once the transfer or liquidation is complete, contact Edward Jones to explicitly confirm that your account has been closed and has a zero balance.
- Request a final statement or confirmation letter showing the account closure.
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4.3 Tax Considerations:
- Keep all tax documents: You will receive a final set of tax documents (e.g., 1099s) from Edward Jones for the year of closure. These are crucial for filing your taxes.
- Consult a tax professional: If you've sold appreciated assets, transferred different types of accounts (especially IRAs), or have complex holdings, it's highly recommended to consult with a tax advisor to understand the tax implications of your account closure.
Step 5: Post-Closure Management – The Final Touches
Even after the account is officially closed, there are a few important steps to take.
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5.1 Update Financial Records:
- Remove Edward Jones from any automated bill pay or financial tracking software you use.
- Update your personal financial statements to reflect the absence of the Edward Jones account.
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5.2 Secure Old Statements:
- Keep digital and/or physical copies of all your past Edward Jones statements, especially those related to the closure and any tax documents. This is important for record-keeping and potential future reference.
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5.3 Provide Feedback (Optional):
- If your experience was particularly good or bad, consider providing feedback to Edward Jones. This can help them improve their services.
10 Related FAQ Questions
Here are 10 frequently asked questions about closing an Edward Jones account, starting with 'How to', along with quick answers:
How to transfer an Edward Jones account to another brokerage?
The easiest way is to initiate an "ACAT" (Automated Customer Account Transfer) transfer through your new brokerage. They will handle the request and transfer your securities directly from Edward Jones.
QuickTip: Revisit posts more than once.
How to avoid fees when closing an Edward Jones account?
Fees for account transfers or closures are common. Some firms waive them under specific conditions (e.g., large account balances, long-standing accounts). Always discuss potential fee waivers with your Edward Jones financial advisor.
How to get my money out of an Edward Jones account quickly?
To get money out quickly, you would typically liquidate (sell) your holdings and request an electronic funds transfer (ACH) to your linked bank account. Be aware that selling assets may have tax implications.
How to close an Edward Jones IRA account?
Closing an Edward Jones IRA often involves transferring it to another IRA custodian (direct rollover) to avoid tax penalties. You'll need to fill out specific IRA transfer forms, usually provided by the receiving institution.
QuickTip: Read a little, pause, then continue.
How to find my Edward Jones account number?
Your Edward Jones account number can be found on your monthly statements, trade confirmations, or by logging into your Edward Jones Online Access. You can also call your financial advisor's office.
How to contact Edward Jones customer service for account closure?
While your financial advisor is the primary contact, you can reach Edward Jones client services at their general customer support number (usually found on their website, e.g., 800-441-5203 in the US). However, they will likely direct you back to your advisor for specific account closure requests.
How to tell if my Edward Jones account is fully closed?
Request a final statement with a zero balance or a formal confirmation letter from Edward Jones stating that the account has been officially closed. You can also try to log into your online access; if the account no longer appears, it's likely closed.
How to deal with tax implications after closing an Edward Jones account?
If you liquidated assets, you will receive tax forms (e.g., 1099-B for sales) from Edward Jones. If you transferred an IRA, ensure it was a direct rollover to avoid taxable distributions. It's highly recommended to consult a tax professional for guidance.
How to liquidate only a portion of my Edward Jones account?
Contact your Edward Jones financial advisor and specify which assets you wish to sell and the desired amount. They will execute the trades and process the distribution of those specific funds.
How to handle physical stock certificates from Edward Jones?
Edward Jones typically holds securities in "street name" electronically. If you have any physical stock certificates, discuss with your advisor how to handle them – they may need to be deposited with the new brokerage or sold.
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