American Funds/Capital Group transfer out fees

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Topic Author
DinkinFlicka
Posts: 32
Joined: Mon Apr 17, 2017 11:10 pm

American Funds/Capital Group transfer out fees

Post by DinkinFlicka » Wed Oct 09, 2019 10:29 pm

My parents set up custodial accounts for me at American Funds when I was a minor, one UTMA account and one Roth IRA (for summer jobs). I've finally gone through the process of getting those into my name and now am looking into transferring the accounts in-kind to Vanguard where I do my personal investment.

Does anyone know what kinds of fees American Funds will charge to transfer in-kind to Vanguard? I've done some googling but have only been able to come across other companies full transfer, partial transfer, and account closing fees.

American Funds is charging me a $10/year custodial fee for the Roth IRA so that one seems like a no-brainer to move.

For the taxable account, the funds are all Class A front-loaded mutual funds. Even if these funds move to Vanguard, I most likely wouldn't sell them but would just use them to reach charitable giving goals through a DAF. I had originally wanted to move American Funds to Vanguard so I could simplify doing my taxes (another relative had also started a UTMA account so I had to track down 2 1099-DIVs that weren't being mailed to me - I've since rolled them all into a single American Funds account in my name). However, if the fee is going to be high, it might make sense to just let it sit. The account is currently not charging any fees.

Topic Author
DinkinFlicka
Posts: 32
Joined: Mon Apr 17, 2017 11:10 pm

Re: American Funds/Capital Group transfer out fees

Post by DinkinFlicka » Mon Oct 14, 2019 12:08 pm

Inadvertent bump, but also another question: does anyone know if American Funds requires a medallion signature guarantee for transferring out? Is there a general rule for when it's needed (like if the names don't match on the accounts) or is a firm by firm thing?

Duffus
Posts: 14
Joined: Sat Dec 15, 2018 8:25 pm

Re: American Funds/Capital Group transfer out fees

Post by Duffus » Mon Oct 14, 2019 1:54 pm

When I transfered from AF to Vanguard they required Medallion signature. No fees on the transfer.

Duffus

scintillator
Posts: 22
Joined: Mon Apr 08, 2019 9:30 pm

Re: American Funds/Capital Group transfer out fees

Post by scintillator » Wed Oct 16, 2019 6:21 pm

As someone dealing with transferring out of American Funds right now, I'll say that with Class A shares in a standard, taxable account, you should be able to transfer out $125,000 per day without a signature. I called them and said I wanted my 300k that's held in mutual funds liquidated and sent to me as a check, and they said it was going to require mailing them a signature. Then I called again today and the person I talked with said I could just sell it in three tranches since there's a 125k/day limit and that would honestly be less hassle and time than mailing a signature probably, so that's what I'm doing.

krow36
Posts: 2234
Joined: Fri Jan 30, 2015 6:05 pm
Location: WA

Re: American Funds/Capital Group transfer out fees

Post by krow36 » Wed Oct 16, 2019 7:45 pm

Several years ago on the phone, American Funds told us that they did not require a Medallion Signature for a transfer to Vanguard of a SIMPLE IRA if the balance was less than $250,000.

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