Asked by reedta2010  |  Submitted October 26, 2016

I want to close my accounts with Edward Jones. What is the best way to proceed?

The accounts include a Roth IRA.

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  Answers  |  1

October 26, 2016

Hi reedta2010,

To close an account, the best way is to contact the brokerage directly and file the appropriate paperwork.
Now, what to do with any funds remaining in the account after closing is another matter. In general, liquidation of all holdings is done. Then, a check for the balance is sent as per your instructions. Keep in mind that capital gains, ERISA (for the IRA) and various other rules, regulations, policies, and procedures will apply.

Specifically with the IRA, we generally do a custodial to custodial transfer, meaning that before an IRA account is closed, the liquid funds are transferred to another custodian (the firm that will manage your IRA as per ERISA regulations). This avoids IRS complications.

You may contact us directly to discuss this in greater detail. Some folks find it easier to close an account in the presence of their trusted advisor, so, as a Registered Investment Advisor, we have assisted folks with this also.

It's not what you make; it's what you keep that determines your lifestyle.

Brian | 11.01.16 @ 14:44

If you need the cash determine first the capital gains before liquidation. If you intend to reinvest elsewhere just open an account there and complete the new brokers or advisors transfer forms and you can elect what's called a sweep and the assets will be transferred in kind which avoids the taxes. From there you and your new broker or advisor can decide what to liquidate. If this is an IRA you'll do a custodian to custodian transfer and with either situation your new advisor will do all of the communication with the residing firm.

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