Let's talk about transferring accounts to Schwab.


Answers to your common questions.

A transfer refers to a movement of funds between two accounts of the same type. These transfers do not get reported to the IRS and, therefore, can occur as often as you would like. Learn about account consolidation

On the other hand, a rollover is when you move funds from one eligible retirement plan to another account of a different type.  An example of a rollover would be a former employer's 401(k) account into an IRA. These transfers may generate a 1099 tax form but are not taxable if both accounts are of the same tax status. For example, if you move a Traditional 401(k) into a Traditional IRA or a Roth 401(k) into a Roth IRA. Learn more about rollovers

An account transfer (also known as "asset transfer") are similar strategies to combine smaller accounts into one and could help you simplify your finances. You do have the option to transfer certain assets from your previous institution into a Schwab account, but to avoid tax consequences and holding funds temporarily, you might consider moving over the entire account.

No. An account transfer is the easier option to move your money from one institution to Schwab as is. For example, if you have a brokerage account with stocks, ETFs, or mutual funds, you can move over the entire account to Schwab while keeping the investments as they are (or, in-kind).

You do not need to pay taxes on assets that are transferred to Schwab in-kind. "In-kind" means you move your investments to Schwab as is. Most assets, such as publicly traded stocks and ETFs, mutual funds, and bonds can be transferred to your Schwab account. If you cash out of assets first, you might incur taxes if those assets are not part of a tax-sheltered account. Learn more about transferring to Schwab.

Schwab does not charge for account transfers.

Transferring a brokerage account to Schwab is as simple as opening the type of account that you plan to transfer.

When creating your new account, Schwab will let you choose where you are transferring funds from and make it easy to provide transfer information. You can start the process in about 10 minutes. Learn more about transferring to Schwab.

To transfer your 401(k) you first need to decide which approach best suits your needs. Although these assets are portable once you leave the employer that they were established with, there are advantages and disadvantages to these options. Depending on your goals, you could either –

  1. Move your 401(k) into a Rollover IRA. If you are keeping the same tax status, you can leverage the same account - for example roll a Traditional 401(k) to a Traditional Rollover IRA. If you wanted to convert those funds into a Roth IRA, you would roll your Traditional 401(k) to a Traditional Rollover IRA, then convert to a Roth.
  2. Move into a new employer's 401(k)
  3. Take a cash distribution
  4. Leave it where it is

Yes, you can transfer from one Roth IRA to another Roth IRA since they are the same account type.

You can consolidate your IRA accounts by initiating a direct transfer between the new and old accounts. These transfers are straightforward if the account types are the same. Learn more about transferring to Schwab.

Depending on your tax status, you might benefit from converting your Traditional IRA into a Roth IRA. Calculating your account's future values can help you decide between Roth and Traditional.

Transferring your assets is as simple as opening an account, and Schwab will prompt you for some simple account details to begin the transfer. Learn more about transferring to Schwab.

Take the next step to consolidate accounts.