When transferring an account, some brokers charge fees. At the same time, some brokers are also willing to reimburse them if you transfer your account to them. But what about Charles Schwab? Does Schwab reimburse transfer fees?
To be completely frank with you, this is uncertain because Schwab hasn’t given a definite answer to this topic. But some customers have reported that Schwab has reimbursed transfer fees for them. There is, however, a sure way to make up for the transfer fees by being referred by a person who already has a Schwab account.
In this article, you will learn:
- How to request a transfer fee from Schwab,
- An alternative way to cover the transfer expense through Schwab,
- If you can transfer mutual funds to Schwab,
- Whether you can transfer a retirement account to Schwab or not,
- If you can transfer an annuity to Schwab,
- Whether you can transfer fractional shares to Schwab or not,
- How long it would take you to transfer your account to Schwab, and
- What fees Schwab would charge you for outgoing account transfers.
Sounds good? Let’s dive right in…
How to Request a Transfer Fee Reimbursement from Schwab?
The best way to go about asking for a transfer fee reimbursement is after you make the transfer.
As I already told you, Schwab won’t officially state if they do it or not. So, your best bet is to contact them through either a live chat, email, or simply give them a call to ask them.
You can also tell them that you have heard of customers who have gotten a reimbursement from them to increase your chances. After all, if you search around the Internet, many people claim that they managed to get one.
Another Way to Cover the Transfer Expense with Schwab
If you don’t want to risk it and you know someone who has a Schwab account, listen up.
You can ask them to refer you to Schwab and assuming that your account’s value is at least $1,000, Schwab will give you $100. Transfer fees are rarely higher than that so it will be more than enough to cover your expense.
Also, keep in mind that the bigger your account is, the more money Schwab will give you. If it’s at least $25,000, you will receive $200. If it’s at least $50,000, you will get $300. And lastly, if your account exceeds $100,000 in value, you will pocket $500.
Not a bad way to cover your transfer fees and make an extra buck.
Can you Transfer Mutual Funds to Charles Schwab?
Note that financial firms often offer clients their own mutual funds also known as proprietary funds. These cannot (with rare exceptions) be transferred.
Also keep in mind, that there are around 8000 mutual funds in the US alone. This means that Schwab does not have an agreement that allows them to store a particular mutual fund with all fund issuers. If your mutual fund cannot be transferred, you will be contacted and informed, however.
Can you Transfer your Retirement Account to Schwab?
Yes, you can! But I advise you to first confer with your plan administrator before requesting the transfer.
The next step is to contact the Schwab Rollover Consultant. He will help you fill out paperwork, answer your questions and work out an agreement with your plan administration. This consultant will also keep you up to date with all the latest developments and follow you all the way, making the process a lot easier.
Can you Transfer An Annuity to Schwab?
Unfortunately, this isn’t possible most of the time. When you have already begun making contributions to your annuity, you cannot transfer it anymore. Exceptions may apply in case you haven’t begun sending payments, however.
You should know that this has nothing to do with Schwab or any other broker for that matter. An annuity can only be canceled with whatever surrender charges this process may come with. It can rarely be transferred…
Fractional shares are unfortunately non-transferable. Upon transfer, all fractional shares will be sold.
This is because fractional shares require a ledger entry from the broker. You might own equity in a company but you depend on them to do so. These records that fractional shares require can simply not be transferred over to another broker.
How Long Do Account Transfers to Schwab Take?
This mainly depends on the broker who holds your account. Generally, this can take about 6 days.
But keep in mind that there is a period of 5 days that must pass for Schwab to accept the transfer after you open an account there.
What Fees Will Schwab Charge you for Outgoing Account Transfers?
Charles Schwab may charge you zero fees when it comes to incoming account transfers, but things are different with outgoing ones.
Right now, they charge $50 for a full account transfer and $25 for a partial one. This is actually a pretty good deal as most brokers often charge more.
Keep in mind that these fees apply to both a brokerage and a retirement account.
As we already discussed, it’s not certain whether Schwab will reimburse your transfer fees or not. But if you have already decided that you want Schwab as your broker, you have nothing to lose here. You can simply ask them if they will do it after the transfer is completed.
However, if you know someone who already has a Schwab account, you can ask them to refer you and pocket at least $100. Transfer fees usually aren’t bigger than this so it will be more than enough to cover them.
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Also, let me know if you have any other questions in the comments and I’ll get back to you as soon as possible…
Talk to you the next time!