As a valued client of Abacus, we want to be sure you’re aware that your account(s) held at TD Ameritrade will be transitioned to Charles Schwab & Co., Inc. (“Schwab”) on September 5, 2023. This transition is a result of Schwab acquiring TD Ameritrade in 2019. While most Abacus accounts are currently with TD Ameritrade, we also have many clients already with Schwab.
For more information about why we chose Schwab as our trusted custodian, please see our email from June 28, 2023.
We want you to feel secure in this transition and have provided answers to some frequently asked questions below. The Abacus team is monitoring your accounts and working closely with TD Ameritrade and Schwab to verify data and ensure a smooth merger.
If you have additional questions, please reach out directly to your Abacus team. We’re here to help.
FAQ:
To avoid disruptions, the transition is taking place over a weekend, between September 1st and September 4th, 2023. Beginning Tuesday, September 5, 2023, all our TD Ameritrade accounts will be held at Charles Schwab & Co.
On or around August 1st, you will receive a letter in the mail from Schwab with your new account information. Your new eight-digit Schwab account number(s) will replace your TD Ameritrade Institutional account number(s) as of September 5, 2023. This document has sensitive information on it, so please keep it in a safe place or shred and dispose of it.
For more details, we encourage you to visit Schwab’s Client Learning Center: Welcome.Schwab.com/Alliance
There is very little you need to do and your relationship with Abacus is not changing. To ensure a smooth transition, please confirm or set up your online account login details:
For Abacus clients with accounts at TD Ameritrade:
- If you already have a TD Ameritrade login, please confirm it is up to date by visiting www.AdvisorClient.com. Starting August 5th to September 1st, you will be prompted to create your new Schwab Alliance login and password. If your TD credentials qualify, you’ll be given the option to retain your existing user ID or create a new one.
- If you do not currently have TD Ameritrade’s AdvisorClient.com login credentials, now is the time to create them. Visit TD Ameritrade’s website at AdvisorClient.com and click ‘Set Up My Profile’. This will help make the transition process seamless and keep you informed of other transition related topics.
- If you wait until after September 5th, you will need to set up your Login ID and password directly on Schwab at Client.Schwab.com. Select ‘New User’, then follow the prompts. You will need your new account number that was mailed to you.
- If you’d like login assistance, please reach out to your Abacus team.
For Abacus clients with accounts already at Schwab:
- If you are a client who currently has an account at Schwab, then there’s nothing you need to do. Your Schwab login will continue to operate with no changes.
As your trusted advisor and investment manager, Abacus is working closely with TD Ameritrade and Schwab to handle the transfer of your accounts. As a result, there is no action required on your part to complete the transition. Abacus has been provided with your new Schwab account numbers. Account preferences, automatic money transfers, investment holdings, and history will all transfer over to Schwab’s platform.
- Statements: You will receive two statements during your next statement period – one for your TD Ameritrade Institutional account (typically showing a zero balance and no positions), and one for your new Schwab account.
- Taxes: Because of the transition, you will have an additional set of 1099 forms for 2023. You can access your TD Ameritrade 1099 tax forms online at Schwab.com/1099 after September 5, 2023.
- Investments: All assets and holdings will be automatically transferred to your new Schwab account “in kind.” Nothing will be sold as a result of this transition and no taxes will be incurred. We are able to purchase all the same investments with Schwab, so there will be no change as a result of this transition.
Once we learned of the TD Ameritrade and Schwab merger, Abacus initiated a long, due diligence vetting process for potential new custodians. After much deliberation and an in-depth review of alternatives, we selected Charles Schwab & Co. as the most suitable custodian for Abacus clients. Not only is Schwab able to keep fees low, they have excellent client and customer service teams, and have demonstrated a level of competence, security, and expertise we demand for our clients.
Even though Abacus has selected Schwab as our primary custodian, we understand that some clients may prefer another option. Abacus also has a relationship with Fidelity Investments. If you wish to discuss moving your accounts to Fidelity, your team will be able to facilitate the transfer after the completion of the Schwab transition in September.
We deeply appreciate and value you as our client and hope to make this transition as smooth as possible for you. Thank you for helping us expand what’s possible with money.
