Fidelity Transfer on Death account question

[RCL]

What is the difference between this type of account and a taxable account? This will be at Fidelity.
The person who has this account has listed a beneficiary but has not funded the account as yet and wants the money to be invested in the Money Market.
The money to be used for funding is sitting in a Chase savings account and is already linked to the Fidelity TOD account
I assume Fidelity can pull the funding $$ from Chase.

[ShadowRegent]

A Transfer on Death account is simply an account with a beneficiary. There is no difference. If you open a taxable account and add a beneficiary, it becomes a TOD account.

[RCL]

Thank you for the information.
I wasn't sure what to tell the person who is asking me and didn't want to give the wrong information.
Tomorrow they will be contacting Fidelity to get things rolling

[twh]

TOD isn't an account type, it is an attribute. It sounds like they have a taxable account and have designated it to be TOD to the listed beneficiaries.

[grampy]

PODs (Payable On Death) are accounts at banks, etc with a named beneficiary. The beneficiary receives a "cash" payout from the account.

TODs (Transfer on Death) are accounts ar brokerages, etc with a named beneficiary. The account is transferred to the named beneficiary as-is. Beneficiary can then do whatever they want with the account ( keep, sell, etc)

[munemaker]

Just keep in mind that TOD supersedes the will and bypasses probate.,

MUN