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When moving accounts from TD Ameritrade to someone else, leave at least $0.01 in your TD Ameritrade account to avoid the Outbound full account transfer fee of $75.
I’ll be the first to admit that I’ve never transferred accounts before…and I should have been more cautious about unanticipated fees. The backstory is my wife is self-employed and we’ve been contributing the maximum allowed to a SEP IRA held at TD Ameritrade. The total account value was meager at under $10k, and we realized that converting it into a solo 401(k) would:
- increase maximum allowed annual contributions
- provide opportunity for backdoor Roth IRA conversions
We could have easily done this all with TD Ameritrade, but my wife’s SEP only contained iShares so it was logical to just move over to Fidelity. Fidelity also allows for rollover conversions from SEP IRA to Solo 401(k), which some firms do not. The first step was to rollover the existing IRA from TD Ameritrade to Fidelity – easy enough. During the transfer of assets portion at Fidelity I was given the option for ENTIRE account or specific assets. Being naive and in a hurry, I went for the entire option. The transfer was just completed today, only to see a $75 debit from the transfer value. This kind of stuff makes my blood boil…
Sure enough, on TD Ameritrade’s fee page, there is an Outbound full account transfer fee of $75. However, a partial account transfer is free. So chock it up to lesson learned for myself, and hopefully a lesson learned for any readers out there. If you’re leaving TD Ameritrade for whatever reason, don’t do an entire account transfer. Leave at least one cent behind for TD Ameritrade to manage and be on your way for free.