Gotchas in transferring employer RSUs (stocks) from Morgan Stanley to Fidelity

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Topic Author
marcuscato1983
Posts: 35
Joined: Tue Jun 29, 2021 8:49 pm

Gotchas in transferring employer RSUs (stocks) from Morgan Stanley to Fidelity

Post by marcuscato1983 »

I have few RSUs from an ex-employer sitting in Morgan Stanley account. I want to transfer them to Fidelity
1) Is it possible to do this?
2) If possible, would the cost basis info get transferred cleanly?
3) Any other gotchas I must be aware of?

Thanks in advance for the help.
nalor511
Posts: 5058
Joined: Mon Jul 27, 2015 1:00 am

Re: Gotchas in transferring employer RSUs (stocks) from Morgan Stanley to Fidelity

Post by nalor511 »

marcuscato1983 wrote: Thu Jul 29, 2021 12:05 am I have few RSUs from an ex-employer sitting in Morgan Stanley account. I want to transfer them to Fidelity
1) Is it possible to do this?
2) If possible, would the cost basis info get transferred cleanly?
3) Any other gotchas I must be aware of?

Thanks in advance for the help.
1. Ask Fidelity
2. Ask Fidelity
3. Take a screenshot, and statements, from your current account before any transfers, to make sure everything (including said cost basis) comes over correctly. Do this always.

That may have seemed tongue in cheek, but it's sincere - Fidelity knows this, they do these things all the time.
HomeStretch
Posts: 11415
Joined: Thu Dec 27, 2018 2:06 pm

Re: Gotchas in transferring employer RSUs (stocks) from Morgan Stanley to Fidelity

Post by HomeStretch »

Welcome to the forum!

Are the shares ‘covered’ (i.e., purchased on or after 1/1/2012) or ‘non-covered’ (i.e., purchased before 1/1/2012)? The cost basis for the former will transfer, the latter may or may not.

Print the cost basis records from Morgan Stanley before transferring. Set the Cost Basis method in your new Fidelity account to “Specific ID”.

If the cost basis for non-covered shares does not transfer, Fidelity has a tool in your online Taxable account that allows you to input the cost basis by tax lot. Very easy when I used it a few years ago.
Topic Author
marcuscato1983
Posts: 35
Joined: Tue Jun 29, 2021 8:49 pm

Re: Gotchas in transferring employer RSUs (stocks) from Morgan Stanley to Fidelity

Post by marcuscato1983 »

Hi @homestretch

All my vested stocks are post 2016, so I should be "covered", the pun is intended :)
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