Heads up for anyone who may transfer their holdings out.
I transferred over my accounts back in February. I have decided to move them back to the original broker. This is just a mental thing for me and nothing necessarily wrong with Robinhood as a broker.
The initial email I got had an incorrect amount that they were going to debit. They were going to remove about 3x more than they should have.
Luckily, I got someone on the phone quickly and they were able to resolve the issue. But just a heads up that if you do decide to transfer out prior to the five years, make sure you review the email they send you carefully, which will show the early removal fee they are going to charge. Here’s a sample of it below:
I transferred over my accounts back in February. I have decided to move them back to the original broker. This is just a mental thing for me and nothing necessarily wrong with Robinhood as a broker.
The initial email I got had an incorrect amount that they were going to debit. They were going to remove about 3x more than they should have.
Luckily, I got someone on the phone quickly and they were able to resolve the issue. But just a heads up that if you do decide to transfer out prior to the five years, make sure you review the email they send you carefully, which will show the early removal fee they are going to charge. Here’s a sample of it below:
What to know about your Traditional IRA account transfer request
Hi Matthew,
We’ve received and have begun to process your request for a Traditional IRA account transfer. It should take 5-7 business days for most assets to settle into the brokerage firm you specified.
If you didn’t make this request, please contact us immediately so we can take action to help protect your account.
What to expect during the transfer:
Your pending orders will be canceled.
We’ll liquidate all the fractional shares held in your Robinhood account based on their fair market value.
Cash and other residual assets, including pending dividends and proceeds from fractional share sales, will be settled in the brokerage firm you specified within an additional 5-7 business days of being credited to your account.
We’ll close your account once the account transfer process is complete. This means you won’t be able to place trades, make deposits, or withdraw cash from this retirement account.
You’ll be charged a <removed> IRA Match Early Removal Fee because a transfer from your IRA:
Is less than 5 years after making the contribution that earned the IRA Match
And your remaining IRA balance is less than the contribution amount that earned the IRA match
If you don’t have any cash in your IRA, then the IRA Match Early Removal Fee will show up as a debit at the other firm. If you have cash available in your IRA, the IRA Match Early Removal Fee will be deducted from your cash balance. See the full Robinhood fee schedule and IRA Match FAQ.
Keep in mind that your assets may transfer at different times. For example, dividends or cash from the sale of fractional positions may transfer before other residual assets.
You can learn more about the account transfer process and timelines in our Help Center.
Thanks for letting us be a part of your investing journey. We’re sad to see you go, but you’re always welcome back.
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Statistics: Posted by manlymatt83 — Thu Apr 11, 2024 3:16 pm — Replies 1760 — Views 141209