Schwab TDA Transition Information
Table of Contents
Our office is committed to making the TD Ameritrade to Schwab transition as seamless as possible. In this document, you’ll find answers to the most frequently asked questions, a transition timeline, and helpful links to detailed information at Schwab.
Please note: The details within this document are believed to be true and accurate at time of publication.
Documents
Frequently Asked Questions
• What is happening between TD Ameritrade and Schwab?
In 2019 Schwab acquired TD Ameritrade Institutional and its related business. Now it is time for the two organizations to combine and convert operations from TD Ameritrade to Schwab. The operational conversion is taking place Sept. 2 – 4, 2023.
• When the TD Ameritrade to Schwab conversion happens in September, what happens to my TD Ameritrade accounts?
All TD Ameritrade accounts will transition to Schwab the weekend of Sept 2 – 4, 2023 (Labor Day weekend). Leading up to the conversion weekend, there will be action steps you must take
to have a successful conversion.
• Will my Investment Advisor Representative change?
No. The relationship with your independent Investment Advisor Representative will not change, and you do not need to take action.
• When is the TD Ameritrade to Schwab transition taking place?
The TD Ameritrade to Schwab has already begun. However, the transition of accounts is set to take place Labor Day weekend, September 2 – 4, 2023.
• How does my account move?
In 2019 Schwab acquired TD Ameritrade Institutional and its related business. Now it is time for the two organizations to combine and convert operations from TD Ameritrade to Schwab. The operational conversion is taking place Sept. 2 – 4, 2023.
• After the transition, am I no longer a TD Ameritrade client?
Upon successful completion of the conversion, you will become a client of Schwab, and Schwab will become the custodian of your account. Your independent investment advisor on record at TD Ameritrade Institutional will transition with your account and will have similar authorizations on your Schwab account as they had on your TD Ameritrade Institutional account.
• Will I have a TD Ameritrade account after the conversion from September 2 - 4, 2023?
No. All accounts will transition to Schwab on Labor Day weekend, Sept. 2 – 4, 2023.
• I currently have an AdvisorClient.com login. What will happen to AdvisorClient.com?
You will be asked to create a Schwab Alliance account, which will replace AdvisorClient.com.
• Will I get a new account number with Schwab?
Yes. Schwab will automatically transition your TD Ameritrade Institutional accounts to Schwab accounts, and you will receive a new eight-digit Schwab account number to replace each TD Ameritrade nine-digit account number.
• If I have multiple TD Ameritrade accounts, including ones that my advisor does not manage, will they transfer at the same time?
The transition to Schwab will take place over multiple weekends in 2023. Schwab will attempt to transition all your accounts over the same weekend, but they may transition at different times.
• What if my financial institution has my TD Ameritrade account numbers for the purposes of moving money in and out of my account?
If you provided your TD Ameritrade Institutional account number(s) to an employer, financial institution, or another third party, you would need to re-establish those instructions with your new Schwab account number(s) after your account transition is complete.
• When will I receive my new 8-digit Schwab account number?
You will receive your new Schwab 8-digit account number approximately 28 days prior to conversion weekend.
• Will I have multiple logins if I have multiple accounts?
No. Schwab will be automatically grouping accounts with the same owner together. That means, after the transition, you will be able to see accounts managed by your advisors and accounts you manage on your own, in one place and with one login.
• Will I be able to access my TD Ameritrade account over the transition weekend?
No. Access to your TD Ameritrade Institutional account will no longer be available starting at 8:30 p.m. ET on Friday, Sept. 1, 2023.
• How can I help make the transition easier for me?
There are many steps you can take to improve your transition experience with Schwab. Prior to the transition weekend, log in to your TD Ameritrade account to confirm your current contact information is correct, including mailing address, email, beneficiaries, etc. Approximately 28 days before your transition date, Schwab will send a letter with details of new account number(s) and how to set up your Schwab credentials in Schwab Alliance. If you provided your TD Ameritrade account number(s) to an employer, financial institution, or another third party, you would need to re-establish those instructions with the new information after the conversion is complete.
• Will my account history, documents, and statement be available at Schwab?
Yes. Schwab will transition up to 10 years of history to Schwab.
• What tax documents will I receive for the year my accounts transition?
If there is activity in your account, you will receive two sets of tax documents for the tax year 2023. One set from TD Ameritrade and one from Schwab.
• How will tax withholding elections for my distribution be handled?
Tax withholding elections (TWE) are the amount of federal and state taxes that you request to be deducted from your distribution to meet your tax obligations. At transition, your TWE instructions will be converted to the minimum for Fed and State if your account has standing outgoing instructions or outgoing, future-dated requests on file. All other TWE instructions will be converted to zero for Fed and State. After the conversion, you or your independent advisor (if you have granted them authority) can update your TWE preferences.
• I share an account with my spouse or family member. Do we all need to set up new credentials to view the account at Schwab?
Yes. Every authorized owner of an account will need to set up credentials to access your Schwab account.
• Will I need to set up a new user ID and password to access my account once my accounts transfer to Schwab?
Yes. You will need to set up a Schwab Alliance account a minimum of 28 days prior to conversion.
• I received the account transition notice in the mail from Schwab. What do I do?
Approximately 60 days from transition, you will receive an “account transition notice” in the mail from Schwab. This is a negative consent form for your accounts to transition from TD Ameritrade to Schwab. There is no action required for this form.
• I have an account synch set up within my Generational Vault. Will I have to do anything?
Yes. You will need to log in to Generational Vault and add your new Schwab 8-digit account number(s) to the synced screen. At this time, you will enter your Schwab Alliance Center username and password to complete the synch.
• Will my withholdings for State and Federal be retained at Schwab?
No. Withholding will be updated to the Federal and State minimums unless updated on the client’s Schwab Alliance portal prior to the scheduled distribution.
