Transferring your financial assets can feel like a daunting task, especially when moving from a firm like Edward Jones, known for its personalized advisor relationships, to a self-directed platform like Fidelity. But fear not! This comprehensive guide will walk you through every step of the process, ensuring a smooth transition.
The Big Move: Transferring Your Investments from Edward Jones to Fidelity
Are you ready to take more control of your investments, potentially lower fees, or simply consolidate your financial life? Excellent! Moving your assets from Edward Jones to Fidelity is a common and often advantageous move for many investors. While it might seem complex, the Automated Customer Account Transfer Service (ACATS) system makes the process largely straightforward. Let's break it down.
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| How To Transfer Money From Edward Jones To Fidelity |
Step 1: Preparation is Key – Gather Your Information!
Before you initiate any transfer, a little preparation goes a long way. Think of this as getting your ducks in a row to ensure a swift and error-free process.
1.1 Understand Your Edward Jones Accounts
- Account Types: Identify all the account types you hold at Edward Jones (e.g., individual brokerage, joint brokerage, Roth IRA, Traditional IRA, SEP IRA, 529 plans, etc.). Each account type may have slightly different transfer considerations.
- Account Numbers: Have your Edward Jones account numbers readily available. These are crucial for initiating the transfer.
- Holdings: Create a list of all your current investments within each Edward Jones account. This includes stocks, bonds, mutual funds, ETFs, CDs, and any other securities.
- Important Note: Be aware that some proprietary mutual funds offered exclusively by Edward Jones cannot be transferred to Fidelity and may need to be liquidated. Fidelity's FundsNetwork® lists funds that are not proprietary and can be transferred without liquidation. If you're unsure, you can call Fidelity to check eligibility.
1.2 Set Up Your Fidelity Accounts
- Open Corresponding Accounts: You'll need to open corresponding accounts at Fidelity for each account you plan to transfer. For example, if you have a Roth IRA at Edward Jones, open a Roth IRA at Fidelity.
- Verify Account Information: Once opened, ensure the account registration (name, address, Social Security number) on your new Fidelity accounts exactly matches the registration on your Edward Jones accounts. Even minor discrepancies can cause significant delays.
- Consider a "Transfer of Assets" (TOA): This is the most common method for moving investments and involves transferring the securities "in kind" (meaning the actual stocks, bonds, etc., move, not just the cash value). This avoids selling your investments and potentially incurring taxes.
Step 2: Initiating the Transfer – Let Fidelity Do the Heavy Lifting!
This is where the magic of the ACATS system comes in. Fidelity, as the receiving firm, will handle most of the communication with Edward Jones.
Tip: Don’t overthink — just keep reading.
2.1 Online Transfer Initiation (Recommended)
- Log In to Fidelity: Access your Fidelity account online.
- Navigate to Transfers: Look for a section related to "Transfers" or "Move an account to Fidelity." Fidelity's website is very user-friendly for this process.
- Select "Transfer an Account to Fidelity": You'll typically be prompted to choose the type of account you're transferring (e.g., investment or retirement).
- Enter Edward Jones Information: You'll need to provide:
- Edward Jones as the "Delivering Firm."
- Your Edward Jones account number(s).
- The type of transfer (full or partial).
- The specific assets you wish to transfer if it's a partial transfer.
- The corresponding Fidelity account where the assets will be moved.
- Electronic Signature (E-Sign): Most of the process can be completed with an electronic signature, making it very convenient.
2.2 Paper Application (If Preferred or Required)
While online initiation is generally faster, you may have the option to complete a paper "Transfer of Assets" form.
- Download the Form: You can usually find this form on Fidelity's website.
- Fill Out Meticulously: Accuracy is paramount. Double-check all details before signing.
- Mail or Fax to Fidelity: Send the completed form to Fidelity. They will then process it with Edward Jones.
2.3 Full vs. Partial Transfers
- Full Transfer: This moves all eligible assets and closes your Edward Jones account. It's often the simplest and fastest method.
- Partial Transfer: This moves only specified assets, leaving the remaining assets and the account open at Edward Jones. This can be useful if you only want to move certain investments or test the waters.
- Considerations: Partial transfers can sometimes be more complex and take longer due to the need to specify which assets are moving.
Step 3: The Waiting Game & What to Expect
Once you've submitted your transfer request, the process officially begins. This is where patience is a virtue!
3.1 Timeline for ACATS Transfers
- Most full ACATS transfers typically take 3-5 business days to complete once Fidelity receives your paperwork and determines it's in good order.
- Note: Fidelity states you should expect written confirmation of your transfer initiation within 7-10 days from when you mail the form.
- Important: The actual transfer time depends on how quickly Edward Jones releases your assets. If the transaction is automated and involves all assets, it may be faster.
- Possible Delays: Transfers involving foreign securities, limited partnerships, or proprietary mutual funds (as mentioned earlier) may take longer or require liquidation. If additional information is needed, either Fidelity or Edward Jones will contact you.
3.2 Monitoring Your Transfer Status
- Fidelity's Online Tracker: Fidelity usually provides an online tool to track the status of your transfer. Utilize this to stay informed.
- Communication: Fidelity will keep you updated on the progress. Be responsive if they request any further information.
3.3 Edward Jones Fees
- Edward Jones may charge a fee for transferring assets out of your account. This is typically an ACAT fee. While the exact fee can vary, some users have reported fees around $150 per account.
- Check for Rebates: Many receiving brokerage firms, including Fidelity (though less commonly advertised for direct transfer bonuses than for credit card points, etc.), may offer to reimburse transfer fees for larger transfers. It's always worth asking Fidelity about any potential transfer fee rebates.
Step 4: Post-Transfer Actions – Confirm and Optimize!
Congratulations! Your assets have (or are in the process of) arrived at Fidelity. Now, it's time for some final checks and optimization.
Tip: Keep your attention on the main thread.
4.1 Verify Transferred Assets
- Reconcile Your Holdings: Once the transfer is complete, meticulously compare the assets received in your Fidelity account(s) against the list of holdings you had at Edward Jones. Ensure everything transferred correctly.
- Cost Basis: It can take up to 15 calendar days for the cost basis information for your transferred securities to be sent from Edward Jones to Fidelity. Until then, your average cost and total return values may not appear accurately. If it's missing after this period, contact Edward Jones to ensure they send the information.
4.2 Consider Your New Investment Strategy
- Explore Fidelity's Offerings: Now that your assets are at Fidelity, take advantage of their extensive range of investment options, including low-cost index funds and ETFs.
- Review Your Portfolio: This is an opportune time to re-evaluate your investment strategy and make any adjustments based on Fidelity's platform and your current financial goals.
- Set Up Beneficiaries: Don't forget to update your beneficiaries on your new Fidelity accounts.
4.3 Close Edward Jones Accounts (If Full Transfer)
- If you performed a full transfer, your Edward Jones account should automatically close once all assets have been moved. However, it's a good practice to confirm the account closure with Edward Jones a few weeks after the transfer is complete to avoid any lingering fees or issues.
10 Related FAQ Questions
Here are 10 frequently asked questions, all starting with "How to," along with their quick answers, to further assist you in your transfer journey:
How to check the status of my transfer from Edward Jones to Fidelity? You can typically check the status of your transfer directly on the Fidelity website by logging into your account and looking for a "Transfers" or "Activity & Orders" section.
How to avoid taxes when transferring investments from Edward Jones to Fidelity? By performing an "in-kind" transfer of assets (TOA), you are moving the actual securities, not selling them, so it is not a taxable event. Taxes only apply if you liquidate investments before the transfer.
Tip: Read carefully — skimming skips meaning.
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How to transfer only a portion of my investments from Edward Jones to Fidelity? When initiating the transfer at Fidelity, select the "partial transfer" option and specify which individual securities or a specific cash amount you wish to move.
How to find my Edward Jones account number for the transfer? Your Edward Jones account number can typically be found on your monthly statements, online account portal, or by contacting your Edward Jones financial advisor.
How to deal with proprietary Edward Jones mutual funds during the transfer? Proprietary Edward Jones mutual funds often cannot be transferred in-kind to Fidelity. You will likely need to liquidate these funds at Edward Jones before initiating the transfer, and then transfer the cash. Confirm this with Fidelity before liquidating.
Tip: Highlight sentences that answer your questions.
How to get Edward Jones to waive transfer out fees? Edward Jones may charge an ACAT transfer-out fee. While they are not obligated to waive it, you can always ask your Edward Jones advisor. Sometimes, the receiving firm (Fidelity) may offer to reimburse these fees for larger transfers, so inquire with Fidelity.
How to handle dividends received during the transfer process? Dividends that are paid out while your assets are in transit typically get transferred as a "residual transfer" to your new Fidelity account a week or so after the main transfer is complete.
How to ensure my cost basis transfers correctly to Fidelity? While Fidelity will request your cost basis from Edward Jones, it can take up to 15 calendar days after the transfer is complete for it to appear. If it's missing after this period, you may need to contact Edward Jones to expedite the delivery of this information to Fidelity.
How to transfer a 401(k) from Edward Jones to Fidelity? If it's an old 401(k) from a former employer held at Edward Jones, you'll initiate a "rollover" to a Fidelity IRA (Traditional or Roth, depending on your original 401(k) type). Fidelity has a specific online rollover application for this.
How to contact Fidelity's transfer department for assistance? You can typically find Fidelity's customer service or transfer assistance phone number on their website. Their general customer service number is 800-544-6666, and they have dedicated support for account transfers.
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