Cost Basis problem transfer of assets from Vanguard to Schwab

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557880yvi
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Cost Basis problem transfer of assets from Vanguard to Schwab

Post by 557880yvi »

Dear Fellow Bogleheads,
We had to make a difficult decision at the end of 2019 to transfer our assets out of Vanguard (Flagship Select) to Schwab. With the elimination of the Advantage accounts it added a significant level of complexity to our money management.

It was not smooth and we have been deeply disappointed with Schwab's customer service (abysmal) and many mistakes made with the transfers. Because I am a professional in the finance and accounting industry, I have the experience and background to know how these should have happened and caught them (and seriously feel for those who would not know that mistakes would be made).

One lingering mistake is that a significant asset (a Vanguard Mutual Fund) that will provide cash flow during our early retirement until we claim SS at 70, was transferred incorrectly (all covered shares bought after 1/1/12). We have always used the specific lot identification method to closely manage our taxes and have always kept meticulous records. Vanguard was instructed in writing to transfer all brokerage assets with the specific lot cost basis. Every asset (a lot of them) made it to Schwab correctly except this one which was transferred at Average Cost (the average is correct but they did not transfer the prices at which each lot was purchased so that when we sell, we select which lots to manage capital gains (there are very large gains and lots were purchased over a wide range of prices) so this really matters for tax purposes.

Vanguard's response was "too bad" not going to fix (they were pretty upset that we left) and Schwab's response has been "we aren't going to fix it even if you can provide copies of every purchase you made". So when we sell lots to fund our cash flow needs, rather than being able to select specific lots (with smaller gains) and have the 1099 show the cost of those lots (selling highest price purchased first to minimize the gain), all lots will be reported at Ave cost - setting up an issue with the gain we will report. Yes, aware of Form 8949 (Sale and Other Dispositions of Capital Assets) but we are guaranteed to get a letter audit because the 1099 will report a higher gain than we report.

So my question is this - can a brokerage firm refuse to correct the cost basis (from reported Ave cost to specific lot) of a mutual fund asset when you provide them the evidence of the cost basis? Schwab is saying that what Vanguard sent is the only value they will accept and they have steadfastly refused to accept even the statements from Vanguard the show individual lot purchases.

And by the way for Schwab customers who may not yet be aware - they have "reengineered" their CS model and if you don't like the answer you get from the call center, you can no longer ask to speak to a manager. You also can't go to a physical Schwab office (in part due to COVID but they will no longer provide CS at the offices - they only service managed account customers there). You can call their "Client Advocacy Team" number but can only leave a message and NO ONE ever returns you calls. Your only alternative is to write a letter and snail mail it (which we did)- but when they don't respond (which they didn't) you can only contact the call center who sends in this same loop again. And when you tell them you need to speak with a manager, they hang up on you.

Thanks in advance
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GerryL
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by GerryL »

If you have kept a record of all the lots (sale dates and price paid), you should be able to tell the IRS which lots you sold and what their cost basis was. Pain in the wazoo, but if you have records, it's in your hands.

My company stock got moved around a bit before I understood the concept of cost basis and how that affects taxes. Specific lot info on a big chunk of my shares -- including several splits -- disappeared. But apparently I'm a little OCD and kept records of all my stock purchases in Quicken.

When I retired I consolidated everything at Vanguard, including the company stock. Eventually I was able to get them to identify the lots that had previously been clumped together. [Edit: I sent them the info, and they added it to my account.] It makes it easier to identify sales and keep track, but until they did that I was still able to make spec id sales from the big clump and report them on my taxes.
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SmileyFace
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by SmileyFace »

GerryL wrote: Wed Sep 23, 2020 3:17 pm If you have kept a record of all the lots (sale dates and price paid), you should be able to tell the IRS which lots you sold and what their cost basis was.
I am no expert but the problem I see is that these are "covered" shares so Schwab will report the cost basis on 1099-B - and the OP will want to use a different cost basis than that reported. There might be a way to report a discrepancy/different value than what is on 1099-B when filing but seems it would open you up to an audit with them not matching.

I am with Vanguard, Schwab and Fidelity and I have to say - Fidelity is looking better every day if I ever decide to consolidate based upon the variety of stories (although in this case the primary problem is getting out of Vanguard correctly)
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Nate79
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by Nate79 »

Schwab has a specific form you need to sign to change the cost basis method for mutual funds. Not sure if it would help in this case or not.
arf30
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by arf30 »

I know at Fidelity there's a button to edit/update cost basis when viewing your holdings, maybe Schwab has the same thing somewhere?
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Nate79
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by Nate79 »

arf30 wrote: Wed Sep 23, 2020 4:23 pm I know at Fidelity there's a button to edit/update cost basis when viewing your holdings, maybe Schwab has the same thing somewhere?
Yes, they do for ETFs. Not sure about mutual funds (assuming you have filled their form to change cost basis method).
student
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by student »

Vanguard is definitely at fault here. I do not know how many lots you have, but I don't think it is unreasonable for them to refuse to do this "by hand" for you. (I am imagining one was doing monthly contribution for the past 10 years.) When you say you are providing the evidence, do you have all the statements? From Schwab's point of view, I can see two issues. The first is whether they can confirm the authenticity of these statements, and the second is how much time do they have to spend on this to fix Vanguard's mistake. I think they also have to make sure that you have never sold anything using average cost as I think it locks you into average cost for all the lots involved.
Last edited by student on Wed Sep 23, 2020 8:46 pm, edited 1 time in total.
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tfb
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by tfb »

557880yvi wrote: Wed Sep 23, 2020 3:03 pm Vanguard's response was "too bad" not going to fix (they were pretty upset that we left) and Schwab's response has been "we aren't going to fix it even if you can provide copies of every purchase you made".
Because Vanguard didn't do what you asked them to do in writing, you should chase Vanguard, not Schwab, on this. If Vanguard transmitted the correct data, you wouldn't have this problem. They are the source. Always go to the source of the problem. Wanting Schwab to make up for Vanguard's mistake isn't right.
Harry Sit, taking a break from the forums.
GetSmarter
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by GetSmarter »

I also had a problem with Charles Schwab regarding cost basis. In my story, I inherited individual stocks at a stepped up basis at Charles Schwab. I'd opened an account in my trust name to transfer stocks into it but was told I could only transfer into an individual account. So I created one. Then I switched the positions (stocks) in, and voila! The stepped up cost basis disappeared, and instead, it showed humungous capital gains since my dad purchased the stocks decades ago. Had I not paid attention, I'd be out of luck. In my case, I paid attention and got an apology and within a few days it was fixed. But considering I had someone from their estate department originally helping me, saying he was staying on top of things, I was disappointed. I like the customer service at Fidelity the best so far.
“The more simple we are, the more complete we become.” August Rodin | | “The less I needed, the better I felt.” Charles Bukowski
RetiredAL
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by RetiredAL »

557880yvi wrote: Wed Sep 23, 2020 3:03 pm
Yes, aware of Form 8949 (Sale and Other Dispositions of Capital Assets) but we are guaranteed to get a letter audit because the 1099 will report a higher gain than we report.
What make you think an "audit" will be guaranteed? Columns F and G on F8949 are there to fix these kinds of errors. Been there, done that. IRS did not bat an eye.

Based on your dialog, I suspect reinvested dividends may have created the many lots. If the error hardly effects your tax bill, it might not even be worth putting any effort getting it fixed it or even breaking out the item on F8949.

Personally, I wouldn't spend $20 in effort chasing after $5 in taxes. The IRS must feel that way too. With my Dad's 1099's this year was a note from Wells Fargo stating they would no longer issue a corrected 1099 if the correction was less than $100.
Katietsu
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by Katietsu »

Since these are covered shares, I would not let up on Vanguard. I am not aware of any exception that allows Vanguard to only report average cost basis and not specific tax lot information in your situation. Please let us know if you find out otherwise. I know that with ETF’s, there are significant fines for failure to provide tax lot cost basis. Hopefully, the same is true for mutual funds.
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557880yvi
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by 557880yvi »

Thank you to everyone for weighting in. There were only 6, very large purchases from 2016-2020, strategically done to secure a very solid investment with significant dividends to ride out early retirement and drive taxable income as low as possible for ROTH conversions. There were only about 10 dividend reinvestments so the total # of lots is extremely small - less than 20 over 5 years. A portion of the fund will be sold each year until age 72 to provide cashflow for living expenses. The plan was to sell the shares in order of highest cost basis first to lowest at the end. Selling at Ave cost will result in hefty gains (no losses) and will derail a very carefully planned, year-by-year tax strategy so it is not chasing $5, the difference is in the tens of thousands.

I have the records of every purchase and the statements showing shares, purchase price and dates (and same for dividend reinvestments). And although this can be corrected with the Form 8949, I shouldn't have to prepare one every year for the next 10-15 years. And without fail, every time there has been a discrepancy between a 1099 and my return, I get a letter audit from the IRS. Always prevail but it's just a major time synch and annoyance to respond and provide documents.

And as was mentioned, other brokers have a page where you can go and correct the cost basis over any period, covered and non-covered, have done this with several other brokerage accounts

I will try to reach out to Vanguard again tomorrow - but don't know what leverage I have to get them to do this. Thank you for all the suggestions and will let you know if I get anywhere with Vanguard.
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557880yvi
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by 557880yvi »

Nate79 wrote: Wed Sep 23, 2020 4:16 pm Schwab has a specific form you need to sign to change the cost basis method for mutual funds. Not sure if it would help in this case or not.
Unfortunately it won't - no matter which method it is changed to, it won't change that Schwab has recorded the ave cost of all lots purchased, as the cost of every lot, so any lot selected regardless of method has the same cost. But thanks for the suggestion.
kaneohe
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by kaneohe »

Have you tried reaching the Cost Basis group at Schwab? They seem more knowledgeable than the average rep and I have found them very helpful. Ask for that specific group when a rep answers.
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557880yvi
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by 557880yvi »

kaneohe wrote: Thu Sep 24, 2020 9:13 am Have you tried reaching the Cost Basis group at Schwab? They seem more knowledgeable than the average rep and I have found them very helpful. Ask for that specific group when a rep answers.
The apparent unannounced new "model" for CS at Schwab is you are not permitted to talk to anyone but the lowest level of call center employee. Refuse to transfer you. Anything else you need you have to write and snail mail a letter (not even a secure email, that will not be addressed by management, departments etc.). This is a dramatic change from what we were told CS would be (akin to Vanguard Flagship/Select, special group to answer phones, dedicated, experienced specialists) when we moved our assets last Dec). Instead, if you can get an answer and not leave a # for a callback which sometimes comes and sometimes does not, calls routed anywhere and everywhere to very young, inexperienced staff who frequently appear to have little training or even basic understanding/knowledge of the industry.
Tattarrattat
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by Tattarrattat »

Interesting change in perspective on customer service compared with the many posts criticizing Vanguard CS. Schwab was supposed to be the gold standard of CS now it sounds like they are making a policy to be as unhelpful as Vanguard. Looks like there is an industry-wide trend to withhold quality service unless you are paying a management fee. The pressure from loss of revenue from no cost trading. Does Fidelity follow?
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557880yvi
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by 557880yvi »

Tattarrattat wrote: Thu Sep 24, 2020 10:03 am Interesting change in perspective on customer service compared with the many posts criticizing Vanguard CS. Schwab was supposed to be the gold standard of CS now it sounds like they are making a policy to be as unhelpful as Vanguard. Looks like there is an industry-wide trend to withhold quality service unless you are paying a management fee. The pressure from loss of revenue from no cost trading. Does Fidelity follow?
in my experience (both personal and professional), there has been a rapid move in the FS industry to generate revenue from management fees (and "management" now be very little of a human being with the expertise to manage your funds and the relationship, but from boilerplate allocation with auto rebalancing on occasion). Steadier and more predictable cash flows and earnings for them with an extreme reduction in cost - instant jump in margins.

We had a horrific experience with Fidelity after being customers for many years and being extremely low maintenance. Once our assets and probably age (key candidates for early retirement - go travel, let us worry about your money for you!) reached a certain point, their HNW group began incessant calls, mailings, emails, which we asked to stop. Explained that our backgrounds allowed us to quite nicely manage our assets but that if we ever needed them we knew where to reach them. Didn't stop and the person "assigned" to us (who IMHO was probably under intense pressure to "bring us in") started engaging in inappropriate and unprofessional behavior.

I think Fidelity is letting others go the low CS model, scoop up customers who are unhappy then when they are the only one left with some level of CS will go the same way as Schwab and Vanguard. Hope this will provide opportunities for other firms to reinvent CS and profit models so they all don't become like this.
kaneohe
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by kaneohe »

Still very surprised to hear of this apparent change at Schwab. Have always been pleased w/ service and even as recently as last wk when I didn't want to wait any longer and hung up, I was pleasantly surprised when they called back soon after. Hopefully things improve after your 1st anniversary w/ them. Maybe try doing a search on BH site for the Cost Basis group phone number.
Last edited by kaneohe on Thu Sep 24, 2020 11:04 am, edited 1 time in total.
stan1
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by stan1 »

Was the specific ID cost basis correct at Vanguard at the time you initiated the transfer? Do you have a screen capture saved showing the correct specific ID cost basis in the Vanguard account? I'd wonder if that one fund was actually set to average cost basis when you transitioned it out of Vanguard.
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557880yvi
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by 557880yvi »

stan1 wrote: Thu Sep 24, 2020 10:38 am Was the specific ID cost basis correct at Vanguard at the time you initiated the transfer? Do you have a screen capture saved showing the correct specific ID cost basis in the Vanguard account? I'd wonder if that one fund was actually set to average cost basis when you transitioned it out of Vanguard.
It was specific ID, all my assets were set that way and I do have the screen print to show this along with several other documents. Schwab said today (from 3 different people) that none of that matters, what Vanguard sent is what they are using - they won't change it, not their problem I can go pound sand. I have even asked their cost basis or transition team to call Vanguard and ask them to send the correct information and they said no, then told me they would give me the address that I could mail a written complaint to if I was not happy. Great customer service.

And Vanguard is refusing to do anything because the account is closed. I am trying to research what recourse I may have to file a complaint - suppose I would start with FINRA. If any boglehead knows another way to get this issue addressed the advice would be greatly welcomed. Thanks
Newaygo
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by Newaygo »

Vanguard made the mistake. You should have tried to get Vanguard to work with Schwab to re-transmit the original cost basis by lot. I do not know if you would have been successful. Schwab is obliged to use what they get from Vanguard.
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by AlohaJoe »

RetiredAL wrote: Wed Sep 23, 2020 6:02 pm
557880yvi wrote: Wed Sep 23, 2020 3:03 pm
Yes, aware of Form 8949 (Sale and Other Dispositions of Capital Assets) but we are guaranteed to get a letter audit because the 1099 will report a higher gain than we report.
What make you think an "audit" will be guaranteed? Columns F and G on F8949 are there to fix these kinds of errors. Been there, done that. IRS did not bat an eye.
I've also had to do this and also think the chance of even getting a letter from the IRS is pretty low. And even if you did get a letter...just respond to it with your proof.

If it was hundreds of lots and I was going to be dealing with the problem every year for the next 40 years I might be inclined to continue to chase Vanguard/Schwab for a better resolution. But it doesn't sound like the OP is in that situation, so I probably wouldn't bother. Spending hours on the phone isn't better than spending 20 minutes replying to an IRS letter.
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557880yvi
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by 557880yvi »

Newaygo wrote: Thu Sep 24, 2020 8:31 pm Vanguard made the mistake. You should have tried to get Vanguard to work with Schwab to re-transmit the original cost basis by lot. I do not know if you would have been successful. Schwab is obliged to use what they get from Vanguard.
I have been trying to get them to help with this since January - the only response I get is your account is closed we can no longer assist you. Dead end. I think when you move Flagship Select level assets out (and it was only because they did away with the Advantage services and my significant other wanted one brokerage account with a bank associated and that was the end of that) they put a special sticky next to your old account :twisted:
Newaygo
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by Newaygo »

I would go to www.elliott.org and see if they can get you the key Vanguard contacts' emails or telephone numbers. Then you could present your case to the key Vanguard managers who are the only people who can make it happen. I have used this approach in the past with much success.
hap_ca
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by hap_ca »

You’ve had poor customer service experience at Fidelity, Schwab and Vanguard with Flagship Select level assets? That’s very concerning. I wonder which brokerage has good customer service these days
theresearcher
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by theresearcher »

Vanguard's obligations to transfer cost basis are laid down by federal law and since these are covered securities it's not even clear that Schwab have the ability to adjust the cost basis even if they agree with you. Your own rights as a taxpayer to adjust basis on form 8949 notwithstanding.

That said- you say that Vanguard were instructed to transfer shares with SpecID cost basis however average cost is the default for mutual funds- did you switch the cost basis on this mutual fund in your Vanguard account. If this is important then perhaps review the papers with an attorney dealing in federal securities law who could advise if Vanguard likely complied with their obligations and if not, to whom a complaint should be made.

Alternatively- is there an option to transfer the mutual fund security back to Vanguard- although there is no guarantee the original cost basis could be recovered. But perhaps ask the question.
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557880yvi
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by 557880yvi »

hap_ca wrote: Thu Sep 24, 2020 9:48 pm You’ve had poor customer service experience at Fidelity, Schwab and Vanguard with Flagship Select level assets? That’s very concerning. I wonder which brokerage has good customer service these days
If anyone has a recommendation for a brokerage firm that still has good service would welcome suggestions. What we seem to have run into is that we have a large amount of financial assets in a few simple accounts that generate a lot of income if they could "get our assets under management". We are able to self-manage and politely say thanks if we ever need you we know where you are. When you won't yield to their pressure to turn over your assets the began to get nasty.

Vanguard was actually very good until last year when they did away with Advantage accounts (basically checking), then pulled the Flagship Advisors (Flagship Team was generally good and our dedicated rep could always get things done when their team could not).

Neither firm liked it when I found significant errors that were made (you would be surprised at how often this happens) in our accounts - dividends reinvested at the wrong price, wrong entries in HSA's, missing histories for reinvested dividends - a long list of other errors. My professional experience allows me to know what should happen, know when it doesn't and ask them to fix these things - and it is not well-received because it highlights some very concerning issues with systems, record-keeping and causes a lot of manual work for them to fix.
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557880yvi
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by 557880yvi »

Newaygo wrote: Thu Sep 24, 2020 9:40 pm I would go to www.elliott.org and see if they can get you the key Vanguard contacts' emails or telephone numbers. Then you could present your case to the key Vanguard managers who are the only people who can make it happen. I have used this approach in the past with much success.
Thank you I will check with them today!!
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557880yvi
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by 557880yvi »

theresearcher wrote: Thu Sep 24, 2020 10:16 pm Vanguard's obligations to transfer cost basis are laid down by federal law and since these are covered securities it's not even clear that Schwab have the ability to adjust the cost basis even if they agree with you. Your own rights as a taxpayer to adjust basis on form 8949 notwithstanding.

That said- you say that Vanguard were instructed to transfer shares with SpecID cost basis however average cost is the default for mutual funds- did you switch the cost basis on this mutual fund in your Vanguard account. If this is important then perhaps review the papers with an attorney dealing in federal securities law who could advise if Vanguard likely complied with their obligations and if not, to whom a complaint should be made.

Alternatively- is there an option to transfer the mutual fund security back to Vanguard- although there is no guarantee the original cost basis could be recovered. But perhaps ask the question.
Yes, in these accounts, all lots of MF's and equities were instructed to be transferred at actual cost (specific ID cost basis). None of them had ever been sold, only purchased (I am a buy and hold kind of investor and the plan all along has been to make smart decisions, invest wisely and ride out the markets - it has worked spectacularly - and now follow a Paul Merriman style of Roth conversions and drawing down assets). I have actually reached out to our previous Flagship Dedicated Rep to see if your suggestion to see if the closed brokerage account could be reactivated (it was only brought to $0 in Feb 20) and have the asset returned. But they may have the same issue - Schwab now has the covered costs listed at average cost for each lot and if transferred back that will still be the incorrect basis received by Vanguard. Well, except the missing 6 reinvested dividends purchases - the individual lot transfer history transferred does not add up to the total shares! How does this not fall out as an error in both firms' account reconciliations? Not material I guess.... And if ours were missing you can bet it was not just us that this happened to at Vanguard - the errors all happened in a 3-month period in 2016 crossing over 2 quarters - but not sure if the error happened all year, that was the only quarter those months were just the months that we chose to reinvest the dividends, not other months in 2016.And Vanguard has refused to correct this too - so if we stay with Schwab and eventually sell all lots of this MF - the are a little over 240 shares for which no cost basis in their records now exists - what will happen?. Schwab has had no answer (how are they going to generate a 1099-B ?) they said call Vanguard, Vanguard says your account is closed we can't help you.
GuyInFL
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by GuyInFL »

How about filing a complaint against Vanguard with FINRA?
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557880yvi
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by 557880yvi »

GuyInFL wrote: Fri Sep 25, 2020 7:20 am How about filing a complaint against Vanguard with FINRA?
That is my next step if they won't fix this. Our former Flagship rep who was wonderful, sent me card after we left with their personal contact information if we ever needed anything (they were not sure their job was going to be there in the future when they dismantled the Flagship team). I have reached out to them to see if they are still there and if so, could they help.
theresearcher
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by theresearcher »

Some actionable points from this thread.

1. Cost basis information should transfer seamlessly but sometimes does not- and that is not necessarily easy to fix. Especially if the account at the prior brokerage is closed (as opposed to a partial transfer).
2. Mutual fund assets have a higher risk of being transferred on average cost basis. The new broker may not have any information available to adjust this to a different cost basis after transfer. If transferring out of Vanguard, and if the option is available, perhaps consider converting to ETF share class first.

It appears from the facts presented that Vanguard should at least explain the cost basis issue, whether to the (former) customer or to Schwab. It might be worth composing a letter to the Vanguard CEO before lodging a complaint, assume with FINRA.
DaMama
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by DaMama »


We had a horrific experience with Fidelity after being customers for many years and being extremely low maintenance. Once our assets and probably age (key candidates for early retirement - go travel, let us worry about your money for you!) reached a certain point, their HNW group began incessant calls
This just started happening to me when I added an inherited IRA at Fidelity. In the past 1.5 weeks, they’ve left 4 voicemails offering to help with my accounts. I did not in any way indicate to them that I wanted help or to be contacted. I just let the calls go to voicemail. But it’s annoying.
Slouching toward retirement.
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557880yvi
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Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by 557880yvi »

DaMama wrote: Sat Sep 26, 2020 1:24 am

We had a horrific experience with Fidelity after being customers for many years and being extremely low maintenance. Once our assets and probably age (key candidates for early retirement - go travel, let us worry about your money for you!) reached a certain point, their HNW group began incessant calls
This just started happening to me when I added an inherited IRA at Fidelity. In the past 1.5 weeks, they’ve left 4 voicemails offering to help with my accounts. I did not in any way indicate to them that I wanted help or to be contacted. I just let the calls go to voicemail. But it’s annoying.
Even after repeated requests, including a trip to one of their investment centers (they were calling both me and my spouse while working and even looked up my employer's phone number and got it transferred to my office phone - I was livid) the calls continued. When I went to the center and spoke directly to the HNW person "assigned" to our account (I am female but have >30 years of professional, executive level experience in finance and accounting) I was treated in a very demeaning manner.
retiringwhen
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Joined: Sat Jul 08, 2017 10:09 am
Location: New Jersey, USA

Re: Cost Basis problem transfer of assets from Vanguard to Schwab

Post by retiringwhen »

AlohaJoe wrote: Thu Sep 24, 2020 8:41 pm
RetiredAL wrote: Wed Sep 23, 2020 6:02 pm
557880yvi wrote: Wed Sep 23, 2020 3:03 pm
Yes, aware of Form 8949 (Sale and Other Dispositions of Capital Assets) but we are guaranteed to get a letter audit because the 1099 will report a higher gain than we report.
What make you think an "audit" will be guaranteed? Columns F and G on F8949 are there to fix these kinds of errors. Been there, done that. IRS did not bat an eye.
I've also had to do this and also think the chance of even getting a letter from the IRS is pretty low. And even if you did get a letter...just respond to it with your proof.

If it was hundreds of lots and I was going to be dealing with the problem every year for the next 40 years I might be inclined to continue to chase Vanguard/Schwab for a better resolution. But it doesn't sound like the OP is in that situation, so I probably wouldn't bother. Spending hours on the phone isn't better than spending 20 minutes replying to an IRS letter.
I concur. I had similar issues with a DRIP Account transfer from Computershare to Vanguard. I just sucked it up and did the F8949 thing for about 6 years until I donated the remained to a Donor Advised Fund as part of a simplification. If the OP has the records, the data entry into Turbotax is simple...

I never heard a peep from the IRS for those 6 years.

I have found many many things that can make a seemly easy tax return hard and this is pretty darn low on the list of pain.
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