moving assets to another firm
if I move managed brokerage money to a more conservative acct. or bank or institution is my tax liability on the total amount moved or just the interest or capital gains it may have made to this point in 2022?
thank you.
Terry Says
First, is the money inside an IRA or other tax-advantaged account? If so, there is no tax due when the assets are sold but kept INSIDE the retirement account. And the easiest way to transfer a retirement account to a new custodian is to have the cash moved directly from one custodian to another. Eventually all gains will come out taxed as ordinary income.
But if this is an after-tax account, and if you have long-term capital gains, you may want to transfer the shares — NOT the cash — to another firm, to maintain your cost basis. Any assets you sell will be subject to short or long-term capital gains. You may be able to offset some gains against losses, minimizing the tax impact. Figure all that out before making any decisions.
It might be easier to just find a more conservative broker at that firm. Or if you are truly annoyed, first find a new advisor — a fee-only Fiducary, and discuss your move and how it should be handled.
You can find a fee-only FIDUCIARY advisor who puts your interests first — at www.Wealthramp.com.
Don’t make a hasty move without getting good tax advice if the account is an after-tax account.
