Help me understand partial transfer

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
sampathk1
Posts: 40
Joined: Tue Jan 01, 2019 5:24 pm

Help me understand partial transfer

Post by sampathk1 »

Trying to understand what is really partial transfer out of a brokerage account means. Assume, I have 100 qty of ETF A and $1000 cash in a brokerage account XYZ. What is really partial transfer here?

1. Transfer all 100 qty of ETF A, keep the $1000 with XYZ (partial at the account level)
2. Transfer only 50 qty (partial at a holding level), keep the remaining 50 and keep the $1000 with XYZ

Thanks in advance!
User avatar
retired@50
Posts: 12431
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: Help me understand partial transfer

Post by retired@50 »

sampathk1 wrote: Sun Feb 11, 2024 1:10 pm Trying to understand what is really partial transfer out of a brokerage account means. Assume, I have 100 qty of ETF A and $1000 cash in a brokerage account XYZ. What is really partial transfer here?

1. Transfer all 100 qty of ETF A, keep the $1000 with XYZ (partial at the account level)
2. Transfer only 50 qty (partial at a holding level), keep the remaining 50 and keep the $1000 with XYZ

Thanks in advance!
Is this some sort of trick question...?

Any transfer that isn't all holdings is partial by definition, isn't it?

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
veggivet
Posts: 1335
Joined: Sun Jan 25, 2015 12:07 pm
Location: New England

Re: Help me understand partial transfer

Post by veggivet »

Usually a good idea to leave a little something behind, as that allows you to still access tax documents, cost basis from previous years, and the like.
Topic Author
sampathk1
Posts: 40
Joined: Tue Jan 01, 2019 5:24 pm

Re: Help me understand partial transfer

Post by sampathk1 »

retired@50 wrote: Sun Feb 11, 2024 1:13 pm
sampathk1 wrote: Sun Feb 11, 2024 1:10 pm Trying to understand what is really partial transfer out of a brokerage account means. Assume, I have 100 qty of ETF A and $1000 cash in a brokerage account XYZ. What is really partial transfer here?

1. Transfer all 100 qty of ETF A, keep the $1000 with XYZ (partial at the account level)
2. Transfer only 50 qty (partial at a holding level), keep the remaining 50 and keep the $1000 with XYZ

Thanks in advance!
Is this some sort of trick question...?

Any transfer that isn't all holdings is partial by definition, isn't it?

Regards,
It was not a trick question. Reason for my question - Merrill Edge has a fee to do full transfer for a non-retirement account. But, if I do a partial transfer + account closure, there is no fee. I was only trying to understand if there is any trick in that fee structure with that kind of use case
RetiredAL
Posts: 3415
Joined: Tue Jun 06, 2017 12:09 am
Location: SF Bay Area

Re: Help me understand partial transfer

Post by RetiredAL »

I've done several partial transfers over the last year while settling my Dad's Estate. All to or within Schwab.

The 'transfer to Schwab' form initiates an ACATS pull from Wells Fargo. I mark it partial and specify which holdings and/or amount of cash to transfer. I will do the final 'to Schwab' in about 60 days, and the intent is to leave a small amount at Wells Fargo Advisors just to keep the account open and active for record access.

Within Schwab, I have been disbursing to my sister's and my accounts. Mine is very simple as the Estate account (Trust) is linked to my ID, thus the std on-line transfer works just fine. For my sister, I have to fill out a paper form specifying which holdings and/or cash to transfer. The form is then up-loaded and the transfer occurs 2 - 3 days later.

The two forms have a lot of similarities.
mbouck
Posts: 53
Joined: Wed Jan 24, 2024 2:08 pm

Re: Help me understand partial transfer

Post by mbouck »

sampathk1 wrote: Sun Feb 11, 2024 1:10 pm Trying to understand what is really partial transfer out of a brokerage account means. Assume, I have 100 qty of ETF A and $1000 cash in a brokerage account XYZ. What is really partial transfer here?

1. Transfer all 100 qty of ETF A, keep the $1000 with XYZ (partial at the account level)
2. Transfer only 50 qty (partial at a holding level), keep the remaining 50 and keep the $1000 with XYZ

Thanks in advance!
Both. You're referring to ACATS (Automated Customer Account Transfer Service). ACATS is supported by all brokerages and was developed by the NSCC to facilitate transferring positions "in kind" from one brokerage to another (i.e. account transportability). With ACATS you can transfer an entire account from one brokerage to another or part of an account (a "partial transfer") from one brokerage to another. You initiate an ACAT from the *receiving* brokerage, specifying the sending brokerage (i.e. the brokerage with the holdings/cash you want to transfer). If you're doing a partial transfer you will specify exactly what you want to transfer and how much (e.g. 100 shares of XYZ and $500.25 cash). You can also specify the entire position of securities/cash (e.g. ALL shares of XYZ and ALL cash). Important - make sure the sending/receiving accounts are of the same "kind" (i.e. Roth to Roth, taxable to taxable, IRA to IRA, etc.)

https://www.dtcc.com/clearing-services/ ... ices/acats
placeholder
Posts: 8218
Joined: Tue Aug 06, 2013 12:43 pm

Re: Help me understand partial transfer

Post by placeholder »

Most custodians will allow you to leave a few bucks and have it be a partial and in particular merrill edge as I've done that numerous times.
Post Reply