Vanguard bank account authorization for joint brokerage account

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PhysicsTeacher
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Vanguard bank account authorization for joint brokerage account

Post by PhysicsTeacher »

How do you request authorization to transact with a given bank account from a joint account holder for a brokerage account at Vanguard? My DH wants to buy some VTSMX in our taxable account using funds from a credit union account that he has used in the past for Roth contributions. Vanguard won't allow this, stating that authorization is required from one or more joint account holders, but it doesn't give any hint as to how to request this authorization from me. Search functionality is down at Vanguard at the moment so I turn to the Bogleheads.
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jhfenton
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Re: Vanguard bank account authorization for joint brokerage account

Post by jhfenton »

Have you used your login to log into the joint account and approve the bank connection? I seem to recall that is what my wife had to do.
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PhysicsTeacher
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Re: Vanguard bank account authorization for joint brokerage account

Post by PhysicsTeacher »

jhfenton wrote:Have you used your login to log into the joint account and approve the bank connection? I seem to recall that is what my wife had to do.
When I log in, there is no indication that there is anything for me to approve. I'm certain he needs to do something to make a request so that I can approve it, but we aren't sure what.

Worst case scenario, I suppose we can transfer the funds from our credit union account to the USAA account that's already linked to our brokerage account, but that's rather inconvenient to do every time one of us wants to make a transaction.
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jhfenton
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Re: Vanguard bank account authorization for joint brokerage account

Post by jhfenton »

I recall that I added the bank account, and my wife had to go into the same add bank account section using her login to approve it.

But I don't have a way to test it now. :beer
*3!4!/5!
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Re: Vanguard bank account authorization for joint brokerage account

Post by *3!4!/5! »

Account maintenance --> Bank information --> Add a new bank --> a simple form, then the usual micro-deposit and verify process.
Last step takes a couple of days, but then your account is connected. It's an extremely simple straightforward process, and all online.

ETA: If the spouses have separate logins, the account linking process works in the one login it's done in, but then the transaction can be done in whichever one its linked to.
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PhysicsTeacher
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Re: Vanguard bank account authorization for joint brokerage account

Post by PhysicsTeacher »

*3!4!/5! wrote:Account maintenance --> Bank information --> Add a new bank --> a simple form, then the usual micro-deposit and verify process.
Last step takes a couple of days, but then your account is connected. It's an extremely simple straightforward process, and all online.
Is that the process even if the account is already connected to Vanguard since he's been using it for his Roth contributions for years? It seems odd to have to do the micro-deposit steps all over again. I don't recall going through that step when linking our USAA account when setting up the joint brokerage account, although I do recall having him log in to his account to approve it.
livesoft
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Re: Vanguard bank account authorization for joint brokerage account

Post by livesoft »

Vanguard has screwed this up, but I have a hack. Read the following carefully because you will be surprised how easy it is.

1. I found that with a new Roth brokerage account at Vanguard that Vanguard would not let me ACH into it from an established checking account without an update to authorization by mailing in a form. I printed out the form, filled it out, signed it, and mailed it in. Nothing happened. Vanguard had no response and certainly no acknowledgment that I sent in the form. I was pissed. But instead of ranting on Bogleheads.org, I did something else ....

2. I tried to add a new bank, but using my existing bank info. Fail. Vanguard computers caught that I used the same bank, so I tried something else ...

3. I deleted my existing bank info, then added it back a moment later. Vanguard accepted this and did the few-cents ACH trial transfers within a few hours. I was able to ACH transfer to my new Roth IRA.

4. This messed up nothing with my spouse's IRAs nor our joint taxable account.

What do you think about that?
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MP123
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Re: Vanguard bank account authorization for joint brokerage account

Post by MP123 »

As I recall my wife had to login with her account and then go to My Accounts/Messages and there was a link to approve my bank account as the transfer account for our joint account.

It's been a little while but you can do it for sure. May have to call them. We didn't have to do micro deposits again I'm sure of that.
Grasshopper
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Re: Vanguard bank account authorization for joint brokerage account

Post by Grasshopper »

I had something similar happen with CapOne and Vanguard. So I just had CapOne push it rather than Vanguard pull the transaction.
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jhfenton
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Re: Vanguard bank account authorization for joint brokerage account

Post by jhfenton »

I missed the significance of the "used in the past for Roth contributions." I think livesoft is right that your husband needs to delete the account and then add it back as a joint account. Then it'll ask for the authorization in your account that MP123 and I recall.
Redfirefox
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Re: Vanguard bank account authorization for joint brokerage account

Post by Redfirefox »

Thanks to everyone’s post, I was able to find the authorization. Hopefully, the following is clear as to what I did:

1. Click on “My Account” tab, located next to the “Home” tab
2. Click on “Account Maintenance”
3. You’ll see:
“Accounts not yet authorized to use this bank
If you have scheduled transactions on any accounts below, they won't run until you've taken action. Select an account for more information.”
—> Click on the account you’d like to authorize located underneath that.
4. Sign into the other user’s account and follow the previous steps.

Voila!
Redfirefox
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Re: Vanguard bank account authorization for joint brokerage account

Post by Redfirefox »

Hi again everyone. Despite what I posted about the account authorization, Vanguard actually sends out a message. So, go to “MY MESSAGES” —> open the message that says tells you to authorize the account and submit the authorization.
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