Moving from TD Ameritrade to Vanguard

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Beach Guy
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Moving from TD Ameritrade to Vanguard

Post by Beach Guy »

I have a "self directed" 401 k plan at TD Ameritrade. I have cash, individual stocks, Vanguard mutual stock and bond funds, Vanguard Bond ETF's as well as well as two Invesco bond funds. I want to Roll it over to a Vanguard Rollover IRA. Has anybody made this transition? Any advice would be appreciated. Do I have to liquidate the non Vanguard products or can they be rolled over as is?
PaunchyPirate
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Re: Moving from TD Ameritrade to Vanguard

Post by PaunchyPirate »

Beach Guy wrote: Tue Jul 21, 2020 4:08 pm I have a "self directed" 401 k plan at TD Ameritrade. I have cash, individual stocks, Vanguard mutual stock and bond funds, Vanguard Bond ETF's as well as well as two Invesco bond funds. I want to Roll it over to a Vanguard Rollover IRA. Has anybody made this transition? Any advice would be appreciated. Do I have to liquidate the non Vanguard products or can they be rolled over as is?
I transferred an IRA and a taxable account from TD Ameritrade a few years ago. I didn’t have to sell anything first and it included mutual funds that were held by a company that Invesco purchased. They are now branded with the Invesco name and still in my Vanguard account. So I would not expect a problem, but you should start the process by calling Vanguard and asking for an account transfer expert. I also transferred multiple stocks with no issues.

Ameritrade took away my online access as soon as the transfer was started. So be sure you have downloaded a copy of anything you want first. Make sure all your contact info is correct in your Ameritrade profile.

Vanguard will perform an initial transfer and then any subsequent dividends that might get sent to Ameritrade will eventually transfer across automatically too. I saw some several weeks later.

All in all it was a pretty painless exercise for me.
WanderingWilly
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Re: Moving from TD Ameritrade to Vanguard

Post by WanderingWilly »

I just went through the process of transferring funds to Vanguard today. Two accounts, a Roth IRA and a self-directed individual taxable account. Mostly they were Vanguard mutual but there was one stock, and two mutual funds from other fund families. The process was a breeze but I did have a Vanguard representative on the phone to answer a question or two. Everything moved "in kind". I did get dinged by Wells Fargo for leaving but I knew that was coming. All in all, it was painless even for a dope like me. Good Luck!
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Eagle33
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Re: Moving from TD Ameritrade to Vanguard

Post by Eagle33 »

Go to this Vanguard support page and click on 'Move Money' & answer the questions.
Rocket science is not “rocket science” to a rocket scientist, just as personal finance is not “rocket science” to a Boglehead.
deltaneutral83
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Re: Moving from TD Ameritrade to Vanguard

Post by deltaneutral83 »

Leave one share at TDS of whatever in each account and transfer the rest in kind to VG. This will leave your TDA account open, as mentioned if you transfer everything, they will shut down your access quickly. You may need to access the TDA account for a few months for various reasons.
Jack FFR1846
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Re: Moving from TD Ameritrade to Vanguard

Post by Jack FFR1846 »

Beach Guy wrote: Tue Jul 21, 2020 4:08 pm I want to Roll it over to a Vanguard Rollover IRA.
Why?

Serious question. What can Vanguard give you that TDA doesn't? I see this as a downgrade.
Bogle: Smart Beta is stupid
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Ramjet
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Re: Moving from TD Ameritrade to Vanguard

Post by Ramjet »

Jack FFR1846 wrote: Wed Jul 22, 2020 7:55 am
Beach Guy wrote: Tue Jul 21, 2020 4:08 pm I want to Roll it over to a Vanguard Rollover IRA.
Why?

Serious question. What can Vanguard give you that TDA doesn't? I see this as a downgrade.
Yes, I made the opposite move. All accounts from VG to TDA. Also, remember TDA will eventually have the Schwab interface
GMT-8
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Re: Moving from TD Ameritrade to Vanguard

Post by GMT-8 »

What difference does it make WHY?

Perhaps he wants to invest with a company in Pennsylvania or has a grudge against Toronto Dominion Bank.

The question was HOW?

As recommended above, start at the Vanguard end and ask them to pull your money out. Interestingly I did this 2 months ago helping a friend, and she still has online access to her (now empty) Commonwealth Financial accounts, and all the statements, tax forms, etc.

GMT
hnd
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Re: Moving from TD Ameritrade to Vanguard

Post by hnd »

I prefer the tda interface over vanguard by a bit, but paying 50 bucks for every vanguard mutual fund is not ideal so it makes sense to hold V MF's in vanguard instead.
Jack FFR1846
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Re: Moving from TD Ameritrade to Vanguard

Post by Jack FFR1846 »

The "How" is simple. Call Vanguard and wait for the pile of paper through snail mail. Then fill out the forms and receive another pile of more paper through snail mail because they forgot the first time. Fill out those forms, include your latest TDA statement and in a month, TDA sends you a check which you then snail mail to Vanguard, or if in kind...not. At least that's how my transfer from a Fidelity account went.

The reason I ask why is because with ETFs, unless you're doing some unusual fund that only Vanguard holds, you can do everything within TDA. Has something bad happened in his TDA account? It's pretty well known that Vanguard has gone to the bottom of the list for customer service. TDA, Schwab and Fidelity are all pretty consistent with good service.
Bogle: Smart Beta is stupid
GMT-8
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Re: Moving from TD Ameritrade to Vanguard

Post by GMT-8 »

My experiences have been different, and satisfactory.

They emailed us the forms, I printed them, the friend filled them out and signed and we scanned/emailed them back.
Only her trust account needed a witnessed signature, which we had done at the UPS Store down the street.
Nothing came or went by mail except the guaranteed signature original.

Likewise, the same process occured when I rolled over my 401(k) and my wife's CalSTRS supplemental benefit plans to Vanguard IRAs.

GMT
Jack FFR1846
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Re: Moving from TD Ameritrade to Vanguard

Post by Jack FFR1846 »

A basic concern is that you're throwing away much of the opportunity to do a backdoor Roth. If you leave the 401k alone and don't have other tIRAs with pre tax money in them, it's a breeze. If not, Pro Rata. I'm well aware of this because I have a tIRA with money moved from a 401k decades ago which means for me that any Roth conversion will come with a big tax payment.
Bogle: Smart Beta is stupid
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Beach Guy
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Re: Moving from TD Ameritrade to Vanguard

Post by Beach Guy »

The question was asked why I want to move my account from TD Ameritrade to Vanguard. The TD Ameritrade account is a self directed 401 (k) and the Vanguard account would be a Rollover IRA. TD Ameritrade will not calculate RMD OR pay taxes due directly to the IRS from a self directed account. It is my understanding that Vanguard will calculate my RMD and send the taxes due to the IRS for a Rollover IRA account. Furthermore I can't make a QCD from a 401 (K). Not sure if I could switch the 401 (k) to a Rollover IRA in TD Ameritrade. I have a Roth IRA at Vanguard and have been happy with the service. I am not unhappy with TD Ameritrade, it was for the reasons I mentioned that I am contemplating the move.
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unclescrooge
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Re: Moving from TD Ameritrade to Vanguard

Post by unclescrooge »

Jack FFR1846 wrote: Wed Jul 22, 2020 7:55 am
Beach Guy wrote: Tue Jul 21, 2020 4:08 pm I want to Roll it over to a Vanguard Rollover IRA.
Why?

Serious question. What can Vanguard give you that TDA doesn't? I see this as a downgrade.
I have the same question.
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unclescrooge
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Re: Moving from TD Ameritrade to Vanguard

Post by unclescrooge »

Beach Guy wrote: Wed Jul 22, 2020 10:10 am The question was asked why I want to move my account from TD Ameritrade to Vanguard. The TD Ameritrade account is a self directed 401 (k) and the Vanguard account would be a Rollover IRA. TD Ameritrade will not calculate RMD OR pay taxes due directly to the IRS from a self directed account. It is my understanding that Vanguard will calculate my RMD and send the taxes due to the IRS for a Rollover IRA account. Furthermore I can't make a QCD from a 401 (K). Not sure if I could switch the 401 (k) to a Rollover IRA in TD Ameritrade. I have a Roth IRA at Vanguard and have been happy with the service. I am not unhappy with TD Ameritrade, it was for the reasons I mentioned that I am contemplating the move.
So just rollover your 401k into an IRA at TD. This would probably solve your problem, no?
Jack FFR1846
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Re: Moving from TD Ameritrade to Vanguard

Post by Jack FFR1846 »

And to answer the outstanding question, yes, you can roll your TDA 401k to a TDA tIRA. I've done that within Fidelity probably half a dozen times over the years.
Bogle: Smart Beta is stupid
Topic Author
Beach Guy
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Re: Moving from TD Ameritrade to Vanguard

Post by Beach Guy »

One other small difference between TD and Vanguard is the interest they each pay on their Sweep Accounts (Settlement Account). Vanguard uses a federal money market account paying about .1 %. TD doesn't give you a choice and pays only about .01%. You can not place cash in a money market account at TD whereas Vanguard has a number of money market funds in which you can "park" cash. This is not a big difference now with interest rates so low, but if you are retired and want to keep cash as a safe haven for RMD's the difference can add up.
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unclescrooge
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Re: Moving from TD Ameritrade to Vanguard

Post by unclescrooge »

Beach Guy wrote: Sat Jul 25, 2020 6:55 am One other small difference between TD and Vanguard is the interest they each pay on their Sweep Accounts (Settlement Account). Vanguard uses a federal money market account paying about .1 %. TD doesn't give you a choice and pays only about .01%. You can not place cash in a money market account at TD whereas Vanguard has a number of money market funds in which you can "park" cash. This is not a big difference now with interest rates so low, but if you are retired and want to keep cash as a safe haven for RMD's the difference can add up.
At TD, you would use a fund like PJLXX. I think it's yield is around 0.1% as well.

Personally, I use SUB, short term intermediate municipal bond ETF.
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