Legacy platform retiring end 2025 - unknown impact on NRA's

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Topic Author
Else
Posts: 62
Joined: Mon Jul 03, 2023 2:54 pm

Legacy platform retiring end 2025 - unknown impact on NRA's

Post by Else »

Apparently some Vanguard clients recieved emails that the legacy platform will be retired by end of 2025. Accounts will be transferred to Brokerage and are frozen.
Vanguard specified that frozen accounts could not buy or trade, dividends default to reinvest. That leaves questions as to what will happen to NRA accounts. I sent the following questions via secure message:

Dear Team, I read about a transition process from legacy to brokerage platform. The date for retiring the legacy platform is apparently end 2025. I did not recieve any communication on this. I am a non Resident. I assume my account would transfer, but be remain a frozen account due to my NRA status. Please confirm this assumption. I have an active w8ben on file. Theoretically I would have to renew that before end of 2026. Do you intend to keep up that process for NRA's on those frozen accounts? Could I still submit a w8ben online or by mail? Would you continue to honor treaty rates on frozen accounts? I thank you in advance for your help.

I will update, when I recieve an answer. Did any NRA's recieve this email? Thanks
TedSwippet
Posts: 5279
Joined: Mon Jun 04, 2007 4:19 pm
Location: The rainy island next to France

Re: Legacy platform retiring end 2025 - unknown impact on NRA's

Post by TedSwippet »

Else wrote: Tue Jun 04, 2024 11:15 pm I will update, when I recieve an answer. Did any NRA's recieve this email? Thanks
Nothing here so far. Thank you for taking the initiative on this. Let's see what Vanguard say.
Topic Author
Else
Posts: 62
Joined: Mon Jul 03, 2023 2:54 pm

Re: Legacy platform retiring end 2025 - unknown impact on NRA's

Post by Else »

Else wrote: Tue Jun 04, 2024 11:15 pm Apparently some Vanguard clients recieved emails that the legacy platform will be retired by end of 2025. Accounts will be transferred to Brokerage and are frozen.
Vanguard specified that frozen accounts could not buy or trade, dividends default to reinvest. That leaves questions as to what will happen to NRA accounts. I sent the following questions via secure message:

Dear Team, I read about a transition process from legacy to brokerage platform. The date for retiring the legacy platform is apparently end 2025. I did not recieve any communication on this. I am a non Resident. I assume my account would transfer, but be remain a frozen account due to my NRA status. Please confirm this assumption. I have an active w8ben on file. Theoretically I would have to renew that before end of 2026. Do you intend to keep up that process for NRA's on those frozen accounts? Could I still submit a w8ben online or by mail? Would you continue to honor treaty rates on frozen accounts? I thank you in advance for your help.

I will update, when I recieve an answer. Did any NRA's recieve this email? Thanks
UPDATE: VANGUARD ANSWERED: quote:

" RE: Closing legacy platform
Dear. :

Thank you for taking the time to contact us.

>>Account Transition>>

Account types that are ineligible to be transitioned to our brokerage platform will not be enrolled in the plan for automatic upgrades in the future. Nonresident aliens are still ineligible to upgrade their accounts to our brokerage platform at this time.

>>Form W-8>>

We still ask that you continue to update your Form W-8 via an online application to maintain your status as a nonresident alien. Vanguard only accepts this form via our online process, as it is unable to be received through the mail.

To access Form W-8, please follow these steps:

1. Log on to vanguard.com.
2. Select the document icon at the top of the page, then choose "Tax forms & information."
3. Choose "Update your Form W-8" and follow ..."

I gave it a try... . What the future holds for NRA's at Vanguard remains a secret.
TedSwippet
Posts: 5279
Joined: Mon Jun 04, 2007 4:19 pm
Location: The rainy island next to France

Re: Legacy platform retiring end 2025 - unknown impact on NRA's

Post by TedSwippet »

Else wrote: Tue Jun 11, 2024 12:12 pm I gave it a try... . What the future holds for NRA's at Vanguard remains a secret.
Thank you for your efforts here. It is noticeable, if not surprising (at least these days) that Vanguard didn't make even the minimal effort required to pretend to answer.

Any luck with Schwab? I recall you were talking to them a while back. Unless I'm misremembering, did you get anything useful from them?
Last edited by TedSwippet on Tue Jun 11, 2024 4:42 pm, edited 1 time in total.
Topic Author
Else
Posts: 62
Joined: Mon Jul 03, 2023 2:54 pm

Re: Legacy platform retiring end 2025 - unknown impact on NRA's

Post by Else »

TedSwippet wrote: Tue Jun 11, 2024 12:49 pm
Else wrote: Tue Jun 11, 2024 12:12 pm
Any luck with Schwab? I recall you were talking to them a while back. Unless I'm misremembering, did you get anything useful from them?
It is just about a year ago that I inquired with Schwab international. No surprises: can transfer mutual funds ( had specifically the 5 funds checked, that I hold) , no new investments, reinvest dividends only, w8ben can be submitted, an additional international brokerage account could be opened for new investments. I did not open an account so far. Schwab international advised, that the approval could take 3 weeks. My ultimate fear is not be given enough time by vanguard to transfer. I have some hope left, when all this Vanguard transition is done, that NRA 's could stay with Vanguard with similar conditions as Schwab international. I would prefer to stay with Vanguard. Regulations in regard to holding a brokerage account could change in the future. I would hate to be at an offshore company, if that happened. I am not rushing, but contemplating a lot. One thought I have is that Vanguard could sell it's NRA business. Just like they did with i401k's. We could end up at Schwab international anyway.
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