How to Transfer a Traditional IRA from Merrill Edge to Vanguard

Retirement accounts aren’t static portfolios trapped in one platform forever. As your investment goals evolve, you may decide to move your Traditional IRA from Merrill Edge to Vanguard to better align with your long-term strategy. Understanding the key steps can help ensure a smooth, tax-efficient transition.

At Carry, we want to make financial decisions feel more manageable, even if you’re handling them outside our platform. This guide breaks down the steps to transfer your Traditional IRA from Merrill Edge to Vanguard smoothly and penalty-free. Please note that while we try to provide the most up-to-date information, these processes are subject to change without notice, so be sure to check with your provider before moving forward.

Step 1: Prepare Your Accounts for Transfer

Before transferring your Traditional IRA from Merrill Edge to Vanguard, it’s important to ensure both accounts are properly set up. This preparation can help reduce delays or errors during the process.

What you’ll Need:

✅ Your current Merrill Edge Traditional IRA account number

✅ Online access to your Merrill Edge online account

✅ Government-issued photo ID

✅ Social Security Number

✅ Most recent Merrill Edge IRA statement

📝 Tip: If you’re planning to transfer your full balance, confirm there are no pending trades or holds in your Merrill Edge account before starting.

Step 2: Open a Vanguard Traditional IRA

You’ll need an active Traditional IRA at Vanguard before funds can be transferred. The account type must match (Traditional IRA to Traditional IRA) to preserve the tax-deferred status.

Visit Vanguard’s website and complete the online account opening process for a Traditional IRA. You’ll need to provide personal information and potentially fund the account with a minimal initial deposit, though many transfers can occur without an upfront contribution.

Step 3: Choose Your Transfer Method

Vanguard offers two primary methods for transferring your Traditional IRA from Merrill Edge:

1. Online Transfer Tool

2. Manual Transfer Form

Step 4: Gather Required Documentation

Successful transfers depend on having the right documentation prepared. To complete the transfer, prepare:

✅ Your Vanguard account number

✅ Merrill Edge account statement

✅ Proof of identification

✅ Social Security Number

✅ Updated contact details

📝 Tip: Double-check account names and numbers for consistency to avoid processing delays.

Step 5: Initiate the Transfer Request

Log in to your Vanguard account and begin the transfer process:

✏️ Hypothetical Example: If you’re transferring a $50,000 balance, you’ll select “full transfer” and confirm that the receiving account is your Vanguard Traditional IRA.

Step 6: Understand Potential Transfer Costs

Most IRA transfers between providers are free. However, it’s always best to consult with both financial institutions to avoid surprises.

✅ Merrill Edge charges a $49.95 account closure fee if you completely close the account

✅ Vanguard typically does not charge incoming transfer fees

Step 7: Tax Considerations for Your Transfer

A Traditional IRA transfer between providers is typically a direct, tax-neutral event. Since you’re moving funds between like accounts, you should not incur any tax penalties if executed correctly.

✏️ Hypothetical Example: A direct transfer means the funds move directly from Merrill Edge to Vanguard without you receiving the check, which preserves the tax-advantaged status.

Step 8: Final Verification and Tracking

After submitting your transfer:

✅ Check both accounts for updates. Most transfers complete in 7–10 business days

✅ Follow up with Vanguard or Merrill Edge if the transfer hasn’t processed within two weeks

✅ Keep a copy of all submitted forms and statements in case of discrepancies.

📌 If you need any additional guidance, be sure to check out these related articles:

Final Thoughts on Transferring Your Traditional IRA

Transferring a Traditional IRA from Merrill Edge to Vanguard is generally a smooth process, provided you take the time to prepare and follow each step carefully. 

Key actions include opening a matching account at Vanguard, collecting the necessary documentation, and submitting your transfer request through either an online tool or manual form.

When done as a direct transfer, the process is typically tax-neutral and free of major fees, making it a practical way to align your retirement savings with your long-term investment strategy.

📌 Want to dive deeper? Here are some other helpful (and free) resources:

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Disclaimer:

The Carry Learning Center is operated by The Vibes Company Inc. (“Vibes”) and contains generalized educational content about personal finance topics. While Vibes provides educational content and technology services, all investment advisory services discussed on this website are provided exclusively through its wholly-owned subsidiary, Carry Advisors LLC (“Carry Advisors”), an SEC registered investment adviser. The information contained on the Carry Learning Center should not be construed as personalized investment advice and should not be considered as a solicitation to buy or sell any security or engage in a particular investment, accounting, tax or legal strategy. Vibes is not providing tax, legal, accounting, or investment advice. You should consult with qualified tax, legal, accounting, and investment professionals regarding your specific situation.

The accounts, strategies and/or investments discussed in this material may not be suitable for all investors. All investments involve the risk of loss, and past performance does not guarantee future results. Investment growth or profit is never a guarantee. All statements and opinions included on the Carry Learning Center are intended to be current as of the date of publication but are subject to change without notice.

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