1: The account types must match on both sides. For example: if you have a Roth IRA at your current firm you will need to make sure that you have a Roth IRA at Wealthfront to receive the funds. [There are a few exceptions to this rule.]
2: The account title must match on both sides. This means that your name, Social Security Number, and address must match on both sides. Please make sure that the account title on file with your current firm is updated if you legally changed your name or recently moved.
3: Remove or leave positions that are not compatible with your Wealthfront account. Currently, our tax efficient transfer system is only able to handle securities that trade on a US exchange. This means we can easily transfer and trade most US stocks and ETFs. If you own low priced stocks, individual bonds, UITs, options, private investments, hedge funds, or any other exotic investment product, they must be sold prior to initiating the transfer or must be left in your external account. We offer partial transfers from many firms, but if you submit a partial transfer you should make sure that you leave enough funds with your current firm to meet any account minimums they may have.
Special note on mutual funds: We can sell many mutual funds but we can’t sell them all. Currently, our tax efficient conversion process does not handle mutual funds and they will be sold upon arrival at Wealthfront. We recommend that you sell mutual funds before you transfer your account, as it can sometimes take longer to liquidate these positions when they arrive.
4: Please make sure there are no restrictions on your account. If you have a managed account, your current firm may prevent the account transfer while you are still enrolled in their service. If you have questions about this please contact your current account representative and make sure that your account is ready to transfer out.
5: Please make sure that there is no pending activity in your account during the transfer or immediately before you submit the request. If you make trades, withdraw or deposit cash during the transfer this will likely cause your current firm to reject the transfer. Please make sure that all trades are settled and all repeating withdrawals/deposits are canceled prior to initiating the transfer.
6: Please make sure that all margin debt and fees are resolved with your current firm. We do not accept accounts with large debits.
Once your account is ready to transfer please log into your Wealthfront account and click “Transfer or Rollover.” Transfers are 5-10 business day automated process that is initiated on the receiving side (Wealthfront in this case).
Nothing in this blog should be construed as tax advice, a solicitation or offer, or recommendation, to buy or sell any security. Financial advisory services are only provided to investors who become Wealthfront Inc. clients pursuant to a written agreement, which investors are urged to read carefully, that is available at www.wealthfront.com. All securities involve risk and may result in some loss. For more information please visit www.wealthfront.com or see our Full Disclosure. While the data Wealthfront uses from third parties is believed to be reliable, Wealthfront does not guarantee the accuracy of the information.