Nearly three years after the merger between TD Ameritrade and Charles Schwab was first announced, the time has finally come for all of the client accounts currently held at TD Ameritrade to be moved to the Schwab platform. And while most of those reading this article are well aware of that fact, we want to continue providing pertinent information as well as the relevant timeline for the move via our social media and newsletter channels. To that effect, here are the key points to know about the transition of your account(s) to Charles Schwab.
When is the transition happening?
At 8:30 p.m. ET on Friday, September 1, 2023, Schwab will begin moving your TD Ameritrade
Institutional accounts to Schwab Advisor Services. You won’t have access to your account(s) as
we transfer your assets and account holdings over the course of the weekend, but beginning on Tuesday, September 5, 2023, you will have the ability to access your account(s) through Schwab Alliance.
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.
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 (www.schwaballiance.com).
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.
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. New account numbers have already been created and mapped over for each account currently held at TD Ameritrade.
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 should have been notified in advance that action needed 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 Tuesday, September 5th.
We have been very pleased so far with the effort being put in by the transition teams in minimizing the impact to our clients, but also understand that an integration this big is unlikely to be completely free of hiccups. We would like to thank all of our clients and partners for their support and understanding during this time and remain available for any questions, comments or concerns as we move forward. As always, if there is anything we can do for you now or in the future, please don’t hesitate to reach out to us.