October 12, 2022

TD Ameritrade and Charles Schwab Merger Update

Clete Albitz, CFA, CFP®
Clete Td Schwab Merger Update

In 2019, TD Ameritrade Holding Corporation was purchased by the Charles Schwab Corporation. The merger between the two firms has created the largest investment custodian for registered investment advisors providing custody services for over $7 trillion in client assets. The size and scope of the combined entity should help keep investor costs low and allow for ongoing investments to keep accounts protected and secure.

Presently, the companies are under the same umbrella, but operate independently. This is expected to change toward the middle to end of 2023 when TD Ameritrade accounts will be converted to Charles Schwab accounts. Once completed, you will likely want to create a login to www.schwaballiance.com to access your account. An archive of your account history, historical account statements, trade confirmations and tax documents should be available.

If you have a taxable investment account, it is expected that you will receive a 1099 tax document from both TD Ameritrade Institutional and Charles Schwab in 2023. If you take distributions from a retirement account, you will also receive a 1099-R from one or both entities depending upon the timing of your distributions. As the transition is scheduled to be completed in calendar year 2023, tax documents for 2024 and beyond will only be issued by Charles Schwab.

We expect this to be a relatively seamless transition with no additional forms or paperwork required, but would not be surprised if we encounter a few speed bumps. Both TD Ameritrade and Charles Schwab have provided us with a high level of support in the early stages of this transition. We’ll keep you up to date as we have more details. Stay tuned.

For a comprehensive review of your personal situation, always consult with your legal or tax advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.

Clete Albitz

CFA, CFP®

Clete Albitz joined Albitz/Miloe & Associates, Inc. in 2005 and is dedicated to serving clients, specializing in investment portfolio management and retirement income planning. Clete is a CFA® charterholder, CERTIFIED FINANCIAL PLANNER®, and graduated with a degree in Economics from the University of California, San Diego. He enjoys playing baseball, basketball, and coaching youth sports. Clete resides in the South Bay with his wife and their three children.

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