The Final, Definitive Thread on Brokerage Transfer Bonuses

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need403bhelp
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by need403bhelp »

tj wrote: Mon Jan 17, 2022 8:07 pm
robbierob03 wrote: Sun Jan 16, 2022 4:31 pm
SlowMovingInvestor wrote: Sat Jan 15, 2022 9:16 am Better ME Bonus, finally

https://www.doctorofcredit.com/merrill- ... vestments/
If anyone has churned the ME bonus before, I'd appreciate any insight on if it would be preferable to simply open another account or call and request the promo for an existing account? My gut says to just open a new CMA account online just so it's a bit cleaner even if the terms say existing accounts are eligible.

Also a more generic question for anyone who has more experience in transferring securities. Are people using the ACAT system to transfer entire positions (which is all I've ever done), or is it normal to only transfer say half of my VTI position from the existing broker since I intend to keep that account open? I'm just curious if transferring partial positions is normal enough that I can reasonably assume the cost basis info will transfer normally, or if partial transfers are so exotic that I should stick with whole positions so I can easily reconcile to the new brokers info.
I opened another account. I see no reason to call and ask and apg to existing account.
What do you plan to do with this account when you are finished? Merge them (is this possible)? Transfer it out? Keep both?
ee22bee
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by ee22bee »

need403bhelp wrote: Tue Jan 18, 2022 4:52 pm
tj wrote: Mon Jan 17, 2022 8:07 pm
robbierob03 wrote: Sun Jan 16, 2022 4:31 pm
SlowMovingInvestor wrote: Sat Jan 15, 2022 9:16 am Better ME Bonus, finally

https://www.doctorofcredit.com/merrill- ... vestments/
If anyone has churned the ME bonus before, I'd appreciate any insight on if it would be preferable to simply open another account or call and request the promo for an existing account? My gut says to just open a new CMA account online just so it's a bit cleaner even if the terms say existing accounts are eligible.

Also a more generic question for anyone who has more experience in transferring securities. Are people using the ACAT system to transfer entire positions (which is all I've ever done), or is it normal to only transfer say half of my VTI position from the existing broker since I intend to keep that account open? I'm just curious if transferring partial positions is normal enough that I can reasonably assume the cost basis info will transfer normally, or if partial transfers are so exotic that I should stick with whole positions so I can easily reconcile to the new brokers info.
I opened another account. I see no reason to call and ask and apg to existing account.
What do you plan to do with this account when you are finished? Merge them (is this possible)? Transfer it out? Keep both?
Online you can transfer positions between multiple CMA accounts (I did this after holding period ended and bonus landed). No fee for such internal transfers. Once emptied, the $0 account just sits there. Had to call in to close the account and hide from view. I did this in 2021, so no experience yet in terms of whether the year-end 1099 will show up online or if they'll mail a paper 1099 for the closed account.

You can of course transfer out too.
tj
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by tj »

need403bhelp wrote: Tue Jan 18, 2022 10:21 am
spammagnet wrote: Tue Jan 18, 2022 8:36 am
tj wrote: Tue Jan 18, 2022 7:43 amIt's not relevant. They don't. Unless they've changed the rules. Anyway, if they did have that rule, I can't imagine why calling and asking would circumvent it.
It would not circumvent it. It could result in your new money being added to an existing account, thereby not exceeding their specified maximum number of accounts. The bonus is for new money, not for new accounts.
If you already have ME assets, but want to bring new assets for bonus and DO just open new account instead of calling to get applied to existing account, then can you somehow merge the two accounts or transfer securities between them after bonus posts, or will you be stuck with two separate accounts with holdings forever?
need403bhelp wrote: Tue Jan 18, 2022 4:52 pm
What do you plan to do with this account when you are finished? Merge them (is this possible)? Transfer it out? Keep both?

I've never had more than one account with active holdings at the same time. When I recycle the offer, it's after the former account became dormant.

I have like 3 or 4 "open" e trade accounts,it can be annoying trying to find the one with the 1099. lol. I think ME will eventually close dead accounts though.
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fetch5482
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by fetch5482 »

gas_balloon wrote: Fri Jan 14, 2022 4:50 pm
LadyGeek wrote: Fri Jan 14, 2022 3:03 pm The final sweep of the fractional shares occurred today.

Vanguard shows this as brokerage orders executing this morning (before market open) and settling today (1/14/2022). Each of my Roth and traditional IRA settlement funds show the cash as available to trade. No way am I touching this.

Nothing is seen on the Fidelity side yet. Since it's the weekend and Monday is a market holiday, I'm guessing everything will show up on Tuesday, 1/18 - the original Fidelity estimate to complete. I suppose they define "transfer complete" as anything over 99.9% transferred. Fidelity is showing these transfers completed on 1/12/22.

Once everything transfers, I'll buy a share of something to take the cash as close to zero as I can.

I'm not transferring my Mom's account, which survived process unscathed (as it should). I'll continue to manage her account at Vanguard as POA.
If they are only showing as "available to trade" but not "available to withdraw" - I think they will transfer out on Wednesday, not Tuesday. I am in the same boat as you, except my "Available to trade" balance showed the total of fractional shares that were sold and settled yesterday, while "Available to withdraw" showed $0. Today the "available to withdraw" and "available to trade" both show the same amount. I am guessing on Tuesday they should both go to $0, with an entry for "Transfer-out" on cash in activity history. Either way, I have put myself a calendar reminder to check the Monday after next (that should be enough time for any delays) and make sure Vanguard balance goes to $0.

Also on fidelity.com/toatracker, you will see new line-items in the transferred assets with dates of today/tuesday/wednesday as things transfer-in.
Two of the 3 accounts that I transferred to Fidelity now show a $0 balance at Vanguard. Both the Roth IRA accounts (for me and wife) have been completely sweeped.
For some reason, the 3rd account, a taxable brokerage account held by our living trust, still has a couple hundred dollars from fractional share sale sitting around. I will give it a few more days, otherwise I will just transfer it to Fidelity via EFT.
Last edited by fetch5482 on Tue Jan 18, 2022 6:44 pm, edited 1 time in total.
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Admiral Fun
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Admiral Fun »

gas_balloon wrote: Tue Jan 11, 2022 7:24 pm I was able to get the rep I spoke to to match E*Trade's current $3000 offer based on my assets size (I think E-Trade has up'd the offer to 3500 now, but it was 3k when I talked to the Fidelity rep, so that's what I have approval for). The toa tracker shows that Fidelity sent the request to vanguard last Friday (Jan 7) with ETA of Jan 14. The vanguard account still hasn't shown any signs that it's transferring out, let's see how long it takes.
Any tips or tricks for getting Fidelity to match? Just a regular rep from the main phone number?
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by LadyGeek »

Admiral Fun wrote: Tue Jan 18, 2022 6:44 pm Any tips or tricks for getting Fidelity to match? Just a regular rep from the main phone number?
Here's how to get to the right person at Fidelity:
LadyGeek wrote: Mon Jan 10, 2022 9:03 am I just pulled the trigger on the move to Fidelity - the process is started. Here's how to get the transfer bonus:

1. Call 800-343-3548
Say "Guidance" or "Promotions" at the bot prompt. Answer Yes to "Do you want to speak with an Advisor?" (I'm not sure on the exact question, but I answered "Yes" to proceed.)

This gets you to the Investment Solutions team, which is the right group to handle incentives. (You can't do this by chat.)
..
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fetch5482
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by fetch5482 »

Admiral Fun wrote: Tue Jan 18, 2022 6:44 pm
gas_balloon wrote: Tue Jan 11, 2022 7:24 pm I was able to get the rep I spoke to to match E*Trade's current $3000 offer based on my assets size (I think E-Trade has up'd the offer to 3500 now, but it was 3k when I talked to the Fidelity rep, so that's what I have approval for). The toa tracker shows that Fidelity sent the request to vanguard last Friday (Jan 7) with ETA of Jan 14. The vanguard account still hasn't shown any signs that it's transferring out, let's see how long it takes.
Any tips or tricks for getting Fidelity to match? Just a regular rep from the main phone number?
Oddly, the rep I talked to (he has a CFP designation, and is local to me geographically) asked me one his own if there are other brokerage bonuses I am looking to get matched. I told him about E*Trade, and he immediately agreed to match it. He asked me to email a link to the promotion site so he can apply for approval, and few days later he replied saying that the bonus match was approved.
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Admiral Fun
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Admiral Fun »

gas_balloon wrote: Tue Jan 18, 2022 6:44 pm Two of the 3 accounts that I transferred to Fidelity now show a $0 balance at Vanguard. Both the Roth IRA accounts (for me and wife) have been completely sweeped.
Thanks for the info about requesting the match. Were you able to count funds from both yourself and your wife toward the bonus?
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fetch5482
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by fetch5482 »

Admiral Fun wrote: Tue Jan 18, 2022 8:16 pm
gas_balloon wrote: Tue Jan 18, 2022 6:44 pm Two of the 3 accounts that I transferred to Fidelity now show a $0 balance at Vanguard. Both the Roth IRA accounts (for me and wife) have been completely sweeped.
Thanks for the info about requesting the match. Were you able to count funds from both yourself and your wife toward the bonus?
Yes, household funds.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by aegywn »

Hi Folks,

Question on the trade offer (https://us.etrade.com/what-we-offer/how-it-works/promo). I definitely do not have $1.5M sitting in either my Roth or regular IRAS, but across those + my cash account I have over $1.5M.

Am I right in understanding that having $1.5M across the Roth + regular + cash account wouldn't qualify me for the $3,500 bonus? That is, it has to be all in one of those accounts?

Thanks!
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by HomeStretch »

aegywn wrote: Tue Jan 18, 2022 8:50 pm Hi Folks,

Question on the trade offer (https://us.etrade.com/what-we-offer/how-it-works/promo). I definitely do not have $1.5M sitting in either my Roth or regular IRAS, but across those + my cash account I have over $1.5M.

Am I right in understanding that having $1.5M across the Roth + regular + cash account wouldn't qualify me for the $3,500 bonus? That is, it has to be all in one of those accounts?

Thanks!
Talk with an eTrade rep to see if they will apply the promo to multiple accounts with the same SS#. I transferred in 2 accounts for the eTrade $4k for $1 million promo offered in Q4.
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Admiral Fun
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Admiral Fun »

Admiral Fun wrote: Mon Jan 17, 2022 7:43 am I"d like to move my IRA from ME to Fidelity, and also move $250k from Vanguard to ME brokerage to get the the $1k bonus.

If I transfer $ out of my Merrill Edge IRA, will that reduce my bonus? It looks like it will not affect the bonus, but it depends what they mean by "account":

"For purposes of this offer, qualifying net new assets are calculated by adding total incoming assets or transfers (including cash, securities and/or margin debit balance transfers) from external accounts, and subtracting assets withdrawn or transferred out of the account within the preceding 52 weeks."
This one point is still not clear to me:
If I deposit $250k in an ME taxable brokerage, but transfer $250k out of an ME IRA do I give up the bonus? (Does “the account” mean “all accounts”)
MandyLuna
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by MandyLuna »

When Schwab matches the bonus offer of a competitor, such as E Trade, what are the "unwritten" terms? Do they generally require X number of months the money has to remain with Schwab in order to avoid a clawback? Thanks
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by student »

MandyLuna wrote: Wed Jan 19, 2022 6:27 am When Schwab matches the bonus offer of a competitor, such as E Trade, what are the "unwritten" terms? Do they generally require X number of months the money has to remain with Schwab in order to avoid a clawback? Thanks
For me, 12 months.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by LadyGeek »

gas_balloon wrote: Fri Jan 14, 2022 6:35 pm
LadyGeek wrote: Fri Jan 14, 2022 6:11 pm I haven't received any notification from Fidelity on the conditions I must meet to receive the bonus. I assume I'm not allowed to transfer funds out, for example. If needed, I can ask Fidelity for details.
You should have received an email with the conditions. The subject line was "A follow-up to our conversation", and it basically took me to https://www.fidelity.com/bin-public/060 ... -terms.pdf
LadyGeek wrote: Fri Jan 14, 2022 7:07 pm Thanks! No, I never received a follow-up email. I'll have to contact the advisor. In any case, that PDF answers all of my questions...
I contacted Fidelity. First, the rep I spoke with stated that Fidelity will match competitive transfer offers. He wasn't the right guy to discuss the details, but he knew that they were doing this.

A few minutes after my phone call (that's good customer service), I did indeed receive an email and confirm the Terms and Conditions are what you stated: cash acquisition offer terms.pdf

Regarding my concerns about adding cash to an IRA - Fidelity will issue the cash award as a credit to my account. It does not count as a contribution. Since I'm retired and have no (planned) earned income for 2022, this is good. Otherwise, I would not qualify to receive the award.

This part of the document now makes sense:
Please allow 2-4 weeks after the qualification period for the bonus awarded to be credited to your account.
Searching for the IRS instructions where a credit does not count as a contribution is difficult. Does anyone have an IRS (or US tax law) source which allows Fidelity to do this? How is this reported for tax purposes?

===================
For completeness, the remaining fractional ETF shares transferred from Vanguard to Fidelity this morning. I'll wait a day for Vanguard to catch up, then buy a few ETF shares to burn down the cash positions. (I'll buy in dollars.)
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by LadyGeek »

student wrote: Wed Jan 19, 2022 8:51 am
MandyLuna wrote: Wed Jan 19, 2022 6:27 am When Schwab matches the bonus offer of a competitor, such as E Trade, what are the "unwritten" terms? Do they generally require X number of months the money has to remain with Schwab in order to avoid a clawback? Thanks
For me, 12 months.
I would think that Schwab has this in writing. If not, ask for it.

Fidelity also has a 12 month clawback. From cash acquisition offer terms.pdf:
Account holders must maintain the minimum account balance (minus any losses related to trading or market volatility, or margin debit balances) at Fidelity for at least twelve months from the date on which the bonus award is credited to the account, or Fidelity may charge the account the cost of the bonus award.
Note that they use the word "charge". When they issue the award, it's a "credit".
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by sc9182 »

LadyGeek wrote: Wed Jan 19, 2022 8:53 am
gas_balloon wrote: Fri Jan 14, 2022 6:35 pm
LadyGeek wrote: Fri Jan 14, 2022 6:11 pm I haven't received any notification from Fidelity on the conditions I must meet to receive the bonus. I assume I'm not allowed to transfer funds out, for example. If needed, I can ask Fidelity for details.
You should have received an email with the conditions. The subject line was "A follow-up to our conversation", and it basically took me to https://www.fidelity.com/bin-public/060 ... -terms.pdf
LadyGeek wrote: Fri Jan 14, 2022 7:07 pm Thanks! No, I never received a follow-up email. I'll have to contact the advisor. In any case, that PDF answers all of my questions...
I contacted Fidelity. First, the rep I spoke with stated that Fidelity will match competitive transfer offers. He wasn't the right guy to discuss the details, but he knew that they were doing this.

A few minutes after my phone call (that's good customer service), I did indeed receive an email and confirm the Terms and Conditions are what you stated: cash acquisition offer terms.pdf

Regarding my concerns about adding cash to an IRA - Fidelity will issue the cash award as a credit to my account. It does not count as a contribution. Since I'm retired and have no (planned) earned income for 2022, this is good. Otherwise, I would not qualify to receive the award.

This part of the document now makes sense:
Please allow 2-4 weeks after the qualification period for the bonus awarded to be credited to your account.
Searching for the IRS instructions where a credit does not count as a contribution is difficult. Does anyone have an IRS (or US tax law) source which allows Fidelity to do this? How is this reported for tax purposes?

===================
For completeness, the remaining fractional ETF shares transferred from Vanguard to Fidelity this morning. I'll wait a day for Vanguard to catch up, then buy a few ETF shares to burn down the cash positions. (I'll buy in dollars.)
On a lighter note - when I see LadyGeek prowling on a thread - I tend to skip a thread (guessing, some thread-violation, or thread-lock, or some admonition of sort). But, its interesting watching LadyGeek explaining own personal Bonus experience. I may still continue to visit this thread ..
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by SlowMovingInvestor »

LadyGeek wrote: Wed Jan 19, 2022 8:53 am
gas_balloon wrote: Fri Jan 14, 2022 6:35 pm
Please allow 2-4 weeks after the qualification period for the bonus awarded to be credited to your account.
Searching for the IRS instructions where a credit does not count as a contribution is difficult. Does anyone have an IRS (or US tax law) source which allows Fidelity to do this? How is this reported for tax purposes?
LadyGeek,

My take is that a bonus credited to an IRA account is like interest or earnings in the IRA, therefore it is not a contribution.

However, if one xfers (say) 250K to a regular brokerage account and 250K to an IRA, then only the part of the bonus pro-rated to an IRA can be deposited in the IRA. The part pro-rated to the brokerage has to be deposited into the brokerage account and is reported in 1099-INT/MISC.

Many brokerages that I've used (ETrade, Schwab, Merrill, TDAM) have deposited IRA xfer bonuses in the IRA itself and have not designated it as a contribution (I don't think I've ever got a bonus at Fido for an IRA transfer). I assume they have tax lawyers/CPAs who think this is OK.

However, some smaller 'brokers' (such as M1Finance) ask you to open a separate brokerage account and deposit the bonus there (it is taxable then) when you transfer an IRA there.
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fetch5482
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by fetch5482 »

My $3,000 bonus showed up today. It was smeared across my Traditional IRA, Roth IRA and Brokerage accounts. I need to understand the tax implications of this since I had already maxed out my IRA contributions for the year, so will this be considered over contributions?
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by EnjoyIt »

gas_balloon wrote: Wed Jan 19, 2022 10:09 am My $3,000 bonus showed up today. It was smeared across my Traditional IRA, Roth IRA and Brokerage accounts. I need to understand the tax implications of this since I had already maxed out my IRA contributions for the year, so will this be considered over contributions?
Don’t worry. This was not an over contribution. It is income in the IRA and not a contribution.

This is one of the reasons why some play this game with their Roth IRA. Great way increase yearly Roth space.
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SlowMovingInvestor
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by SlowMovingInvestor »

gas_balloon wrote: Wed Jan 19, 2022 10:09 am My $3,000 bonus showed up today. It was smeared across my Traditional IRA, Roth IRA and Brokerage accounts. I need to understand the tax implications of this since I had already maxed out my IRA contributions for the year, so will this be considered over contributions?
See my example about pro-rating in my previous post.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by sc9182 »

If a bonus (that is deposited into Brokerage account) exceeds $600, usually the institution sends a 1099 -- you should pay attention to it (also, a rather rare but a time-or-two, we've noticed that the Bonus' 1099 made to IRS Wage/Income Transcript around/after July/early-Aug time-frame., but not sent to our home-address/email - that account may have been since closed, so no online-access to fish for tax forms on our own).

We've accounted for such 1099 bonus income during extended-tax filing season (whether or not 1099 was sent to us., but only made to IRS Wage-Income transcript, check it around late-July/early-Aug)
Last edited by sc9182 on Wed Jan 19, 2022 11:05 am, edited 1 time in total.
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by fetch5482 »

EnjoyIt wrote: Wed Jan 19, 2022 10:12 am Don’t worry. This was not an over contribution. It is income in the IRA and not a contribution.

This is one of the reasons why some play this game with their Roth IRA. Great way increase yearly Roth space.
SlowMovingInvestor wrote: Wed Jan 19, 2022 10:13 am See my example about pro-rating in my previous post.
Thanks! In my case, most of the $3000 showed up in the brokerage account since that was the only way I could reach 1.5 million required to qualify. The rest of the accounts were prorated based on the amount in each of the Roth IRA accounts, which adds up to around ~250 or so. I also received $11 in traditional IRA - it seems my Jan 3 contributions for backdoor IRA may have played a role in that.
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$500 Bonus for 10K Brokerage Deposit

Post by Parkinglotracer »

[Merged into existing thread for brokerage transfer bonuses by Mod Misenplace]
Saw a thread about a $100 Bonus for 10K deposit at Marcus Bank

Tastyworks Brokerage is offering a $500 Bonus for 10K deposit

https://info.tastyworks.com/opennow

Insurance:

https://support.tastyworks.com/support/ ... protection
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Re: $500 Bonus for 10K Brokerage Deposit

Post by Kookaburra »

Parkinglotracer wrote: Wed Jan 19, 2022 5:01 pm [Merged into existing thread for brokerage transfer bonuses by Mod Misenplace]
Saw a thread about a $100 Bonus for 10K deposit at Marcus Bank

Tastyworks Brokerage is offering a $500 Bonus for 10K deposit

https://info.tastyworks.com/opennow

Insurance:

https://support.tastyworks.com/support/ ... protection
I’m not familiar with Tastyworks. Any red flags to be aware of? Do they charge transfer fees and/or account closure fees if one wants to move money out and close the account after the 90-day qualifying period?
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Re: $500 Bonus for 10K Brokerage Deposit

Post by pre »

Kookaburra wrote: Wed Jan 19, 2022 7:39 pm
Parkinglotracer wrote: Wed Jan 19, 2022 5:01 pm [Merged into existing thread for brokerage transfer bonuses by Mod Misenplace]
Saw a thread about a $100 Bonus for 10K deposit at Marcus Bank

Tastyworks Brokerage is offering a $500 Bonus for 10K deposit

https://info.tastyworks.com/opennow

Insurance:

https://support.tastyworks.com/support/ ... protection
I’m not familiar with Tastyworks. Any red flags to be aware of? Do they charge transfer fees and/or account closure fees if one wants to move money out and close the account after the 90-day qualifying period?
I'd recommend a search in this thread. Quite a few folks have done it.

Since it was only 3 months holding period, I just transferred in cash rather that ACAT'ing in securities. The $500 credited within a few days
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Kookaburra »

ee22bee wrote: Fri Jan 07, 2022 2:23 am
itispossible wrote: Thu Jan 06, 2022 8:30 pm Thank you to everyone who replied to me. This is such a wonderful forum -- so glad to have found this helpful community.
Be sure to ask the receiving brokerage to reimburse your rollover transfer-out fees, if any. Schwab seems to agree to this consistently. E*Trade seems to depend on who you get. (FYI, some employer plans have hefty fees. My Ascensus 403b charged $75 for roll-out, plus $15 for a second check to transfer out residual dividends that posted two days later. Good thing Schwab said they'd reimburse.)

Regarding Rollover IRA vs Traditional IRA, here are reasons one might consider the former:
https://obliviousinvestor.com/what-is-a-rollover-ira/

Those factors may or may not be applicable for you. Do consider that in the future there's possibility that you might roll your rollover IRA into a future employer 401k if you need/want to do the Backdoor Roth.
How exactly are the fees reimbursed? Do they pay the sending broker a check? Add the amount back to your transfer? Other?

And is it tax-free or does it get reported as interest/income on a 1099?
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by ee22bee »

Kookaburra wrote: Wed Jan 19, 2022 8:37 pm How exactly are the fees reimbursed? Do they pay the sending broker a check? Add the amount back to your transfer? Other?
The sending brokerage deducts the fee from your balance before they transfer out the assets. You'd be short that amount when your assets land in the receiving brokerage.

Get the receiving brokerage to agree to reimbursement before you do the transfer. After the assets arrive, just send a message to the receiving brokerage, "please reimburse me the $X fee as previously agreed." They'll then just add that amount into your account.

I don't think this is common, but some receiving brokerage might require you to show proof, which can be a screenshot from sending brokerage's activities page, or the next monthly statement.

If your originating account's cash balance is less than the fee, what would happen probably depends on the brokerage. I had a $10 balance in a Merrill Edge account, they deducted $50 fee from it and transferred a balance of -$40 to the receiving brokerage. The receiving brokerage added $50 back, bringing my balance back to $10.
Kookaburra wrote: Wed Jan 19, 2022 8:37 pm And is it tax-free or does it get reported as interest/income on a 1099?
For taxable accounts, they're reported as income, on either 1099-MISC or 1099-INT.
For tIRA, they'd be taxable upon withdrawal just like any other gains in the account.
Best is Roth IRA, tax-free.
pasadena
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by pasadena »

LadyGeek wrote: Fri Jan 14, 2022 6:11 pm
GeraniumLover wrote: Fri Jan 14, 2022 3:30 pm
LadyGeek wrote: Fri Jan 14, 2022 3:03 pm
Once everything transfers, I'll buy a share of something to take the cash as close to zero as I can.
One nice thing about Fidelity is you can place trades for dollar/cent amounts rather than just whole shares, so you also have that option to bring the cash balance even closer to zero.
Good reminder, thanks. I've done this with my Fidelity taxable account. I'll leave enough room to make sure I don't risk execution beyond what I have available. The software seems to stop that, but I'm not sure. (I have no experience on what might happen, but it can't be good.)
gas_balloon wrote: Fri Jan 14, 2022 4:50 pm If they are only showing as "available to trade" but not "available to withdraw" - I think they will transfer out on Wednesday, not Tuesday. I am in the same boat as you, except my "Available to trade" balance showed the total of fractional shares that were sold and settled yesterday, while "Available to withdraw" showed $0. Today the "available to withdraw" and "available to trade" both show the same amount. I am guessing on Tuesday they should both go to $0, with an entry for "Transfer-out" on cash in activity history. Either way, I have put myself a calendar reminder to check the Monday after next (that should be enough time for any delays) and make sure Vanguard balance goes to $0.

Also on fidelity.com/toatracker, you will see new line-items in the transferred assets with dates of today/tuesday/wednesday as things transfer-in.
Yes, I see "available to trade" but not "available to withdraw".

I haven't received any notification from Fidelity on the conditions I must meet to receive the bonus. I assume I'm not allowed to transfer funds out, for example. If needed, I can ask Fidelity for details.
I'm in the process of transferring my Vanguard assets to Fidelity. The funds showed up this morning on the Fidelity side (minus partial shares, and everything is still greyed out and "pending") and Vanguard is not showing anything different at all yet. I suppose that will happen on Monday or Tuesday (Fidelity shows the transfer as completed but with an ETA on next Tuesday).

My question to you is, how long did it take for your cost basis information to show up at Fidelity?
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fetch5482
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by fetch5482 »

pasadena wrote: Fri Jan 21, 2022 10:19 am
LadyGeek wrote: Fri Jan 14, 2022 6:11 pm
GeraniumLover wrote: Fri Jan 14, 2022 3:30 pm
LadyGeek wrote: Fri Jan 14, 2022 3:03 pm
Once everything transfers, I'll buy a share of something to take the cash as close to zero as I can.
One nice thing about Fidelity is you can place trades for dollar/cent amounts rather than just whole shares, so you also have that option to bring the cash balance even closer to zero.
Good reminder, thanks. I've done this with my Fidelity taxable account. I'll leave enough room to make sure I don't risk execution beyond what I have available. The software seems to stop that, but I'm not sure. (I have no experience on what might happen, but it can't be good.)
gas_balloon wrote: Fri Jan 14, 2022 4:50 pm If they are only showing as "available to trade" but not "available to withdraw" - I think they will transfer out on Wednesday, not Tuesday. I am in the same boat as you, except my "Available to trade" balance showed the total of fractional shares that were sold and settled yesterday, while "Available to withdraw" showed $0. Today the "available to withdraw" and "available to trade" both show the same amount. I am guessing on Tuesday they should both go to $0, with an entry for "Transfer-out" on cash in activity history. Either way, I have put myself a calendar reminder to check the Monday after next (that should be enough time for any delays) and make sure Vanguard balance goes to $0.

Also on fidelity.com/toatracker, you will see new line-items in the transferred assets with dates of today/tuesday/wednesday as things transfer-in.
Yes, I see "available to trade" but not "available to withdraw".

I haven't received any notification from Fidelity on the conditions I must meet to receive the bonus. I assume I'm not allowed to transfer funds out, for example. If needed, I can ask Fidelity for details.
I'm in the process of transferring my Vanguard assets to Fidelity. The funds showed up this morning on the Fidelity side (minus partial shares, and everything is still greyed out and "pending") and Vanguard is not showing anything different at all yet. I suppose that will happen on Monday or Tuesday (Fidelity shows the transfer as completed but with an ETA on next Tuesday).

My question to you is, how long did it take for your cost basis information to show up at Fidelity?
Costb basis showed up within 3 business days after the first transfer. The final sweep happened ~8 days after the first sweep. After the final sweep all my Vanguard accounts were showing $0 balance.
(AGE minus 23%) Bonds | 5% REITs | Balance 80% US (75/25 TSM/SCV) + 20% International (80/20 Developed/Emerging)
pasadena
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by pasadena »

gas_balloon wrote: Fri Jan 21, 2022 10:31 am
pasadena wrote: Fri Jan 21, 2022 10:19 am
LadyGeek wrote: Fri Jan 14, 2022 6:11 pm
GeraniumLover wrote: Fri Jan 14, 2022 3:30 pm
LadyGeek wrote: Fri Jan 14, 2022 3:03 pm
Once everything transfers, I'll buy a share of something to take the cash as close to zero as I can.
One nice thing about Fidelity is you can place trades for dollar/cent amounts rather than just whole shares, so you also have that option to bring the cash balance even closer to zero.
Good reminder, thanks. I've done this with my Fidelity taxable account. I'll leave enough room to make sure I don't risk execution beyond what I have available. The software seems to stop that, but I'm not sure. (I have no experience on what might happen, but it can't be good.)
gas_balloon wrote: Fri Jan 14, 2022 4:50 pm If they are only showing as "available to trade" but not "available to withdraw" - I think they will transfer out on Wednesday, not Tuesday. I am in the same boat as you, except my "Available to trade" balance showed the total of fractional shares that were sold and settled yesterday, while "Available to withdraw" showed $0. Today the "available to withdraw" and "available to trade" both show the same amount. I am guessing on Tuesday they should both go to $0, with an entry for "Transfer-out" on cash in activity history. Either way, I have put myself a calendar reminder to check the Monday after next (that should be enough time for any delays) and make sure Vanguard balance goes to $0.

Also on fidelity.com/toatracker, you will see new line-items in the transferred assets with dates of today/tuesday/wednesday as things transfer-in.
Yes, I see "available to trade" but not "available to withdraw".

I haven't received any notification from Fidelity on the conditions I must meet to receive the bonus. I assume I'm not allowed to transfer funds out, for example. If needed, I can ask Fidelity for details.
I'm in the process of transferring my Vanguard assets to Fidelity. The funds showed up this morning on the Fidelity side (minus partial shares, and everything is still greyed out and "pending") and Vanguard is not showing anything different at all yet. I suppose that will happen on Monday or Tuesday (Fidelity shows the transfer as completed but with an ETA on next Tuesday).

My question to you is, how long did it take for your cost basis information to show up at Fidelity?
Costb basis showed up within 3 business days after the first transfer. The final sweep happened ~8 days after the first sweep. After the final sweep all my Vanguard accounts were showing $0 balance.
Thanks! Let's hope the market keeps falling next week then. I have some interesting TLH to do :)
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fetch5482
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by fetch5482 »

pasadena wrote: Fri Jan 21, 2022 10:33 am
Thanks! Let's hope the market keeps falling next week then. I have some interesting TLH to do :)
The non-existance of cost basis should not prevent you from selling and doing TLH. If you know the cost basis from your Vanguard account prior to transfer, you can sell the funds in Fidelity, and in a couple days when cost basis information transfers, Fidelity will correctly show the capital gain/loss.
(AGE minus 23%) Bonds | 5% REITs | Balance 80% US (75/25 TSM/SCV) + 20% International (80/20 Developed/Emerging)
pasadena
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by pasadena »

gas_balloon wrote: Fri Jan 21, 2022 10:50 am
pasadena wrote: Fri Jan 21, 2022 10:33 am
Thanks! Let's hope the market keeps falling next week then. I have some interesting TLH to do :)
The non-existance of cost basis should not prevent you from selling and doing TLH. If you know the cost basis from your Vanguard account prior to transfer, you can sell the funds in Fidelity, and in a couple days when cost basis information transfers, Fidelity will correctly show the capital gain/loss.
Yes, I didn't think of that, thanks. I could also enter it manually. But I have to wait until at least Monday anyway, since the funds aren't yet available to trade or edit.
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Tastyworks Bonus - Questions

Post by Kookaburra »

[Thread merged into here --admin LadyGeek]

Tastyworks has a relatively tasty promotional bonus of $200 for a $2K deposit into a new brokerage account or $500 for a $10K deposit. I’ve never used or heard of Tastyworks before, so I’m interested to hear from folks if there is anything to be aware of with them, any “gotchas”, etc.

Also, a few specific questions:

1. Can I link a bank account and transfer in cash via ACH, as opposed to an ACATS transfer of securities, while still being eligible for the bonus?

2. Does Tastyworks charge any fees for account maintenance, transfers out, or account closure?

Thanks in advance
02nz
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Re: Tastyworks Bonus - Questions

Post by 02nz »

I transferred in $10K via ACH and got the bonus very quickly. You don't even have to invest that sum. No maintenance fees, not sure about transfer out, but for me it's irrelevant as I'd always get the gaining brokerage to reimburse me the transfer-out fee anyway.
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Re: Tastyworks Bonus - Questions

Post by Ron Ronnerson »

02nz wrote: Sat Jan 22, 2022 1:51 pm I transferred in $10K via ACH and got the bonus very quickly. You don't even have to invest that sum. No maintenance fees, not sure about transfer out, but for me it's irrelevant as I'd always get the gaining brokerage to reimburse me the transfer-out fee anyway.
There is no fee to transfer out. My wife and I both got bonuses from Tastyworks last year. We deposited $2k (let that sit in cash), got 100 shares of stock as a bonus a few days after the deposit, sold the shares within a few days of receiving the shares, withdrew the money a few months later, and closed the accounts by sending a message. There were no fees charged.

The Tastyworks platform is sort of weird but they paid the bonus as promised so I was happy. By the way, the stock we received was worth less than $2 per share so the current offer has a higher bonus than what we got. However, we didn’t know what stock we would receive and that sort of made it a bit exciting at least.
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Cranberry44
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Re: Tastyworks Bonus - Questions

Post by Cranberry44 »

I got the bonus a few months ago in Fall 2021. It was easy -- transferred 2k into their platform and put it in NTSX to avoid any wash sale rules with my other TSM holdings. Recently sold everything and am now closing the account.

Tastyworks is really a platform for options trading which is why it may seem odd if you don't trade options.
MrJedi
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Re: Tastyworks Bonus - Questions

Post by MrJedi »

There's a $75 outgoing ACATS transfer fee. No fee for ACH out. I just parked $10k from my cash position via ACH to get the $500.

There's no fee for incoming ACATS, and I believe the terms say that transferring $10k of securities will satisfy the bonus as well. To me it was easier to just do the cash. Paying $75 in ACATS out fee vs lost opportunity from holding $10k in dead cash for 90 days washes out for me anyway.
Kookaburra
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Re: Tastyworks Bonus - Questions

Post by Kookaburra »

Great information. Thanks everyone
sycamore
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Re: Tastyworks Bonus - Questions

Post by sycamore »

I got the $500 bonus late last year too. No problems.

Here are their fees: https://tastyworks.com/commissions-and-fees/
Nyc10036
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Re: Tastyworks Bonus - Questions

Post by Nyc10036 »

$500 for $10K versus $100 for $10K from Marcus.
Sounds like the better deal.
Thanks for the headsup! :happy
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Re: Tastyworks Bonus - Questions

Post by veggivet »

Very easy to set up account and bonus credited on day 2. Sitting in cash until day 91, then back to TDA.
stay_the_course
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Re: Tastyworks Bonus - Questions

Post by stay_the_course »

Got the bonus no drama. The UI and features are not for me, will be liquidating and transfering out once the 90 day period is over.
reastman
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Re: Tastyworks Bonus - Questions

Post by reastman »

Thanks for the share.

Does Tastyworks allow international stock purchases?

Im looking for a brokerage firm that does.
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Alto Astral
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Re: Tastyworks Bonus - Questions

Post by Alto Astral »

Thanks for the tip. Opened for him+her. Its processing "Watch for a ‘Welcome’ email in 3-5 days when this account is ready for funding."
Kookaburra
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Re: Tastyworks Bonus - Questions

Post by Kookaburra »

I’m going through the account creation process now and it’s asking me “what kind of account do you want to open?” The options are : Margin, Cash, or Retirement. Which do I choose to maintain eligibility for the promo bonus? The terms and conditions say to open a brokerage account, so I’m thinking “margin” but am not sure.
SlowMovingInvestor
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Re: Tastyworks Bonus - Questions

Post by SlowMovingInvestor »

reastman wrote: Sat Jan 22, 2022 11:53 pm Thanks for the share.

Does Tastyworks allow international stock purchases?

Im looking for a brokerage firm that does.
Interactive Broker is probably the best in terms of international stock purchase.
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Alto Astral
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Re: Tastyworks Bonus - Questions

Post by Alto Astral »

Kookaburra wrote: Sun Jan 23, 2022 2:59 pm I’m going through the account creation process now and it’s asking me “what kind of account do you want to open?” The options are : Margin, Cash, or Retirement. Which do I choose to maintain eligibility for the promo bonus? The terms and conditions say to open a brokerage account, so I’m thinking “margin” but am not sure.
I picked cash since I don't plan to do anything else with it other than the bonus
sycamore
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Re: Tastyworks Bonus - Questions

Post by sycamore »

Alto Astral wrote: Sun Jan 23, 2022 4:20 pm
Kookaburra wrote: Sun Jan 23, 2022 2:59 pm I’m going through the account creation process now and it’s asking me “what kind of account do you want to open?” The options are : Margin, Cash, or Retirement. Which do I choose to maintain eligibility for the promo bonus? The terms and conditions say to open a brokerage account, so I’m thinking “margin” but am not sure.
I picked cash since I don't plan to do anything else with it other than the bonus
+1

Cash account is fine for getting the bonus.

OP, do read up on margin. If you don't know what it is, you definitely shouldn't use it :-)
Kookaburra
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Re: Tastyworks Bonus - Questions

Post by Kookaburra »

sycamore wrote: Sun Jan 23, 2022 4:28 pm
Alto Astral wrote: Sun Jan 23, 2022 4:20 pm
Kookaburra wrote: Sun Jan 23, 2022 2:59 pm I’m going through the account creation process now and it’s asking me “what kind of account do you want to open?” The options are : Margin, Cash, or Retirement. Which do I choose to maintain eligibility for the promo bonus? The terms and conditions say to open a brokerage account, so I’m thinking “margin” but am not sure.
I picked cash since I don't plan to do anything else with it other than the bonus
+1

Cash account is fine for getting the bonus.

OP, do read up on margin. If you don't know what it is, you definitely shouldn't use it :-)
Crud. I was impatient and proceeded with a margin account b/c I didn’t think a “cash account” would qualify as a brokerage account. Hopefully I can still transfer in cash via ACH, hold it as cash, and then transfer out after 90 days? Can anyone confirm? I don’t plan to use margin, so hopefully this isn’t an issue?
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