Do I have to liquidate my funds in order to transfer them?

We generally transfer funds from one custodian to another “in-kind” and do not liquidate. This means we simply transfer the securities your previous custodian to Fidelity and TD Ameritrade as-is. An in-kind transfer is a non-taxable event, because nothing is sold.

Once transferred over, our algorithm will evaluate the tax implications of selling each holding.

There are a few rare cases where we would ask you to liquidate your funds prior to transfer. This occurs if the fund cannot be held at Fidelity or TD Ameritrade, or if the security is proprietary to your firm and cannot move to other custodians. We communicate this to you proactively if it’s needed.

See our article here on tax considerations, in the rare case we must consider liquidating assets prior to transfers.