TD Ameritrade/Charles Schwab Transition Update
Key Info Packets
Key info packets were mailed around Aug. 1. This packet includes a letter with the client’s new account number(s), plus important details about the transition and what they can do to avoid disruptions in accessing their account after the conversion.
The packet also includes details about creating a Schwab Alliance Login ID and password, which each client will need to access account information post-conversion.
Since it was announced back in November 2019, the merger between TD Ameritrade and Charles Schwab has been moving steadily forward, mostly behind the scenes, for the past two years. Now that we are getting closer to the moment when client accounts will actually be moved from the TD Ameritrade platform to Schwab’s, we thought it would be important to provide an update with answers to some of the key questions being asked about the eventual move.
Frequently Asked Questions
When is the transition going to take place?
Schwab announced that the target date of the transition is over the Labor-Day weekend in September of next year.
Where will my accounts be held after the transition?
All current TD Ameritrade account holders will have their accounts held at Charles Schwab after the transition.
Will I need to sign new paperwork to open the corresponding accounts at Charles Schwab?
No, your existing account paperwork will be used to open corresponding accounts at Charles Schwab and the transition will take place back office to back office.
How will I access my accounts online after the transition?
After the transition, instead of using Advisor Client to access your accounts online, you will use Schwab Alliance.
Will I need to set up a new user profile on Schwab Alliance if I am already signed up for AdvisorClient.com?
No, existing AdvisorClient.com user profiles, as well as preferences, such as paperless delivery, will merge over to Schwab Alliance automatically. We are encouraging all clients to make sure they are set up on AdvisorClient.com prior to the transition, as this will make the process much smoother when the time comes.
Will my account numbers change after the move to Charles Schwab?
Yes, Charles Schwab uses eight-digit account numbers rather than the nine-digit numbers used at TD Ameritrade. During the transition, the account numbers will automatically be converted to Schwab’s format.
If I currently have money-movement instructions and/or direct-deposit instructions set up on my TD Ameritrade account(s), will I have to re-submit paperwork to have the instructions set up on my new account(s) at Charles Schwab?
No, as long as those instructions were originally set up through your advisor or directly at TD Ameritrade, and not at your bank, the instructions will transition to your new accounts at Schwab.
Will my current beneficiary designations remain on the new accounts at Charles Schwab, or will I need to update them?
The vast majority of current beneficiary designations will transition over to the new accounts without needing to be updated. In some rare instances, they may need to be updated, and for any of those, clients will be notified in advance that action needs to be taken.
Will I receive multiple 1099s in 2023?
It is possible, depending on the eventual transition time, that clients will receive 1099s from both TD Ameritrade and Charles Schwab in 2023.
When will I be able to access my new Charles Schwab accounts online?
Since the transition will take place over a long weekend, everyone with Schwab Alliance access will be able to see their accounts, as well as have the full range of online features, on the Tuesday morning following the holiday.
Is there action clients need to take now to prepare for the transition?
We have been quite pleased so far to see that everything is being done to minimize the action needed by the end clients to effect this transition, and we expect that to remain the case as we move along. At present, the most important recommendation we can make to all of our clients, is to make sure you are set up for online access at TD Ameritrade through the AdvisorClient.com portal, and, if you have already done so, to make sure that all your contact information there is up to date.
While we understand that an integration of this magnitude will not be without its hiccups along the way, we at FirstLine Financial, are committed to making this transition as seamless as possible for our clients, and we will continue to provide updates and information along the way.
For now, if you have any questions, or would like more information, we encourage you to reach out to us at any time.
