Brokerage 1099: what happens if you transfer assets mid year? Anything to look out for?

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MtnTravel
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Brokerage 1099: what happens if you transfer assets mid year? Anything to look out for?

Post by MtnTravel »

This is probably a very silly question.

We are consolidating accounts to Fidelity, but had Vanguard, Fidelity, Schwab, and Merrill at one point or another last year. I'm slowing getting 1099s in. If I ACATS'ed my account from one brokerage to another in 2024, do the 1099s reconcile so I'm not paying taxes on dividends twice?
Big Dog
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Re: Brokerage 1099: what happens if you transfer assets mid year? Anything to look out for?

Post by Big Dog »

MtnTravel wrote: Mon Feb 03, 2025 6:24 pm This is probably a very silly question.

We are consolidating accounts to Fidelity, but had Vanguard, Fidelity, Schwab, and Merrill at one point or another last year. I'm slowing getting 1099s in. If I ACATS'ed my account from one brokerage to another in 2024, do the 1099s reconcile so I'm not paying taxes on dividends twice?
yes, each 1099 will only report the dividends that they issued/paid while they controlled the fund/stock.
bongo
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Re: Brokerage 1099: what happens if you transfer assets mid year? Anything to look out for?

Post by bongo »

There was a post a few days ago where the OP swears his dividend was stolen from him because the ACATS happened on the div pay-date. The tone of the responses were kind of negative though, so he stopped responding and we never did find out what happened.
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sycamore
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Re: Brokerage 1099: what happens if you transfer assets mid year? Anything to look out for?

Post by sycamore »

Also, a common suggestion is to submit your transfer request after all dividends are issued and paid/reinvested.

This may help avoid an issue where the transfer occurs while a dividend is "in-flight". Brokerages should have processes to deal with this but you can probably help by avoiding it in the first place.

Typically dividends are paid quarterly near the end of the month (not all though) so you'd want to wait, say, for a week into the month of April, July, October, January to make sure the proceeding quarter's dividends were and reinvestments were settled.

[Edited to say bongo and I were posting at the same time about the same idea.]
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