What is a partial ACATS transfer and what is the typical timeframe for its completion?
A partial ACATS transfer exists when the customer elects to transfer only a select group of assets from one broker to another rather than the entire account. As this type of transfer requires that the customer specify those assets to IB, the Account Management interface through which notification is provided precludes the entry of any security not eligible to be carried by IB. This effectively minimizes the need for an asset review and accommodates a transfer time frame ranging from 2 to 4 business days.
Glossary terms:
What is the typical timeframe for completion of a full ACATS transfer request?
A full ACATS transfer request will generally be completed or settled anywhere between from 4 to 7 business days. The actual time which any one request may take depends upon a number of factors, most notably being the speed at which the delivering broker responds to the initial request, the ability of the two brokers to successfully corroborate the customer’s account details (e.g., account title, account number, taxpayer identification number, etc.), whether the list of account assets requires adjustment due to the inclusion of securities not eligible to be carried by the receiving broker, and/or if the effect of the transfer would be to violate the receiving broker’s credit policy (i.e., create a margin deficiency).
Withdrawal restrictions applicable to assets transferred via ACATS
Assets transferred to IBKR via ACATS are subject to a withdrawal hold period of up to 30 days, the count of which begins the day after the transfer has settled and ends at midnight of the 30th day thereafter. Note that assets are often credited to an account holder’s equity and made available for trade prior to transfer settlement. The date at which a given ACATS deposit is eligible for withdrawal may be determined through the Transaction History function within Client Portal.
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Assets eligible to be transferred through ACATS
Instruments handled by the ACATS system include the following asset classes: equities, options, corporate bonds, municipal bonds, mutual funds and cash. It should be noted; however, that ACATS eligibility does not guarantee that any given security will transfer as each receiving broker maintains its own requirements as to which asset classes as well as securities within a particular asset class it will accept.
Account holders are encouraged to use the Contract Search link on IB’s homepage to assess transfer eligibility prior to initiating a full account transfer request. In the case of mutual funds, please click here for a list of fund families and funds offered by IB.
ACATS Rejections - Most Common Causes
The rejection of an ACATS transfer request is typically initiated by action of the delivering broker once that broker has had an opportunity to review the request and confirm the details of the account to be transferred. In the case of certain rejection notices (i.e., categories 1-5 and 10 below), the ACATS process affords the receiving broker (IB) a 24-hour window within which revised information may be transmitted and after which time the transfer request will require resubmission by the client. During this 24-hour window, IB will attempt to contact the transferring client in an effort to reconcile any discrepancies causing the initial rejection notice. Rejections generally fall into the following categories:
Rejections by the Delivering Broker:
- Social Security Number/Tax ID Mismatch - the client taxpayer identification number as provided by the receiving broker does not agree with that of the delivering broker’s records.
- Account Title Mismatch - the client account title as provided by the receiving broker does not agree with that of the delivering broker’s records.
- Documentation Needed – the delivering broker requires additional account documentation in order to process a transfer request (e.g., death or marriage legal documents).
- Account Flat – account holds no transferable assets.
- Invalid Account Number – the client account number as provided by the receiving broker is not on delivering member’s books.
- Duplicate – delivering broker is already in receipt of a transfer request involving the same receiving broker and client account..
- Account in Distribution or Transfer – another ACATS transfer or other distribution of account assets directly to client is already underway.
- Client Rescinded – client has submitted written request to cancel transfer request.
- Missing Authorization Signature – transfer request requires an additional client and/or custodian signature.
Rejections by the Receiving Broker:
10. Credit Violation - the result of the transfer if effected would be to place the account in margin deficit and subject to forced liquidation.
Glossary terms:
PROCESS FLOW - FULL ACATS TRANSFER
Overview:
An ACATS transfer request typically takes 4 business days to complete and may take as long as 7 business days depending upon the circumstances involved in the transfer. Outlined in the table below is a process flow of the transfer process, including typical time frames for each stage of the process.
PROCESS FLOW - FULL ACATS TRANSFER
|
Step
|
Transaction History
|
DTCC Stage |
Description
|
Result
|
Time Frame
|
|
1
|
Token Confirmed |
- |
Customer submits transfer instructions to IB via Account Management.
|
Begins transfer process.
|
Day 1.
|
|
2
|
Acknowledged | Request |
Receiving broker (IB) electronically transmits request via ACATS.
|
NSCC generates reports confirming transfer request to both IB and delivering broker.
|
Day 1 if Step 1 completed prior to 11:30 PM ET, else Day 2.
|
|
3
|
Acknowledged | Request |
Delivering broker has up to 1 day to review transfer request for accuracy of account details and accept or reject.
|
If validated, delivering broker submits asset list;
If rejected, delivering broker enters applicable rejection code.
|
Day 1 to Day 3, depending upon timing of customer submission, each brokers input relative to the ACATS multi-batch processing cycles and the ability of the two brokers to corroborate the customer’s account details.
|
|
4
|
Acknowledged | Review |
If transfer request was accepted by delivering broker, the receiving broker (IB) has up to 1 day to review asset list.
|
If asset list was received, receiving broker (IB) can either accept the account, request adjustments (e.g., where asset lists include securities not eligible at receiving broker), or reject the account (e.g., where account is not in margin compliance).
|
Day 2 to Day 4, depending upon events as noted above as well as decision of receiving broker to accept the account or request adjustments.
|
| Rejected | Rejected | If transfer request was rejected by delivering broker, depending upon the nature of the rejection the receiving broker may have up to 1 day to resubmit request. |
If transfer request was rejected by delivering broker, receiving broker may correct and resubmit request or take no action and let request reject. | Day 2 to Day 4, depending upon events as noted above as well as decision of receiving broker to accept the account or request adjustments. | |
|
5
|
Acknowledged
|
Settlement Prep |
If receiving broker (IB) accepts the account the assets are staged and ‘locked’ for transfer. Assets begin to transfer.
|
Neither the delivering nor receiving firm can adjust or delete the ACATS transfer. Settlement will take place next business day.
|
Day 3 to day 6.
|
|
6
|
Processed
|
Settlement Close |
Assets Settled.
|
|
Day 4 to day 8.
|
Glossary terms:
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How can I check the status of funding transactions?
Overview:
IBKR provides account holders with a tool that provides real-time updates and current status of all deposit and withdrawal transactions relating to both cash and positions which have taken place over the prior 45 calendar day period. This tool is made available through the secure Account Management application and may be accessed via the Transfer & Pay and then Transaction History menu options.
Display
By default, the Transaction History page shows all of your funding transactions for the past ten days. You can adjust that up to the past 90 days by adjusting the time slider. Click and drag the slider right or left to change the time. The page updates to display all of your funding transactions for the selected period.
By default, transactions are displayed by date in descending order. Change the sort order by clicking any column heading. To change the sort order from descending to ascending, click the column heading again. For example, if you want to view all deposits listed together, click the Type column heading.
Click the Configure (gear) icon to configure the transaction history to display additional information, including Account ID, Account Title and Method.
To view transaction details, click anywhere on a transaction row. Details for the transaction appear in a popup window. From the transaction detail popup window, you can perform any of the following operations:
- Cancel any transaction that has a status of Pending by clicking Cancel. Click Yes to confirm the cancellation.
- Print the transaction details by clicking Print.
- Stop payment on a check withdrawal.
- Close the popup window by clicking the X icon in the upper corner.
- Note: DO NOT CLICK THE CANCEL BUTTON UNLESS YOU WANT TO CANCEL THE TRANSACTION.
Search and Filter
Search for a specific transaction by Account ID, Account Title, Transaction Type (deposit, withdrawal, etc.), Transaction Method (check, wire, etc.), or Status by typing the search criteria in the Search field, and then clicking the Search (magnifying glass) icon. Search words are not case-sensitive.
Filter the transaction history by Transaction Type, Method or Status.
Print and Export
To print the transaction history as currently displayed, click the Print icon located in the upper right corner of the screen.
To export your transaction history to an XLS file (Microsoft Excel-compatible), click the Export icon located in the upper right corner of the page. You are prompted to save or download the .XLS page to your computer (depending on your web browser). Once saved, you can open that file in Microsoft Excel.
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I'm trying to transfer assets from my account at Fidelity via ACATS but can't find that broker on your dropdown list.
Overview:
Fidelity Investments uses its National Financial Services affiliate for certain clearing, custody and brokerage services including ACATS transfers. To initiate a full or partial ACATS transfer from a Fidelity account, select National Financial Services (DTCC No 0226) from the drop-down broker list.
IRA: Understanding Rollovers
Interactive Brokers offers three IRA account types for US persons: Traditional IRA, Roth IRA, and Simplified Employee Pension plan IRA (a.k.a. SEP-IRA). Rollover transaction options may be available into or out of each account type.
The term IRA Rollover refers to several different movements of funds between US retirement accounts. Select from the list below for a brief description of each rollover type available, as well as the their guidelines.
IRA to Employer Sponsored Retirement Plan Rollover
Rollover Types
Funds withdrawn from an IRA and re-deposited into an IRA within 60 days may be eligible for treatment as a 60-day rollover contribution. If eligible, this movement of funds may qualify as an IRA withdrawal of funds without any penalty or taxes.
Tax Reporting - IBKR will report the withdrawal of funds as an IRA distribution and the re-deposit of funds as an IRA rollover contribution to the IRS. The IRS receives Form 5498 (IRA Contributions) and Form 1099-R (IRA Distributions). US investors do not include the Form 5498 with their tax filing, but do include the 1099-R. Click IRA Tax Reporting for details.
Funds received or withdrawn from an employer-sponsored retirement plan and deposited directly into an IRA. The 20% tax withholding of funds by the plan sponsor is waived when funds are rolled directly into an IRA.
Tax Reporting - IBKR will report the deposit of funds from an employer-sponsored retirement plan as an IRA rollover contribution to the IRS. The IRS receives Form 5498 (IRA Contributions). US investors do not include the Form 5498 with their tax filing. Click IRA Tax Reporting for details.
3. IRA to Employer Sponsored Retirement Plan Rollover
Funds moved directly from an IRA into an employer's retirement plan are deemed rollover contributions. Not all retirement plans accept rollovers from IRAs. Investors should consult the plan sponsor to determine eligibility.
Limitations & Guidelines
Distributed funds from an IRA may be rolled into another IRA only once every 12-month period. The rule applies to funds withdrawn from each separate IRA. The 12-month period begins the date funds are received, not on the date funds are deposited into another IRA. (See IRS Publication 590 for limited exceptions to the rule.)
Distributions from an IRA or Employer Sponsored Retirement plan may remain eligible for the tax-free rollover treatment only when contributed to another qualified plan within 60 days of receipt. Generally, funds re-deposited outside of 60 days are not tax-free. The withdrawal of funds is taxable. The deposit into another IRA is treated as a regular contribution. (See IRS Publication 590 for limited exceptions to the rule.)
Click here to return to the Retirement Account Resource page.
Disclaimer: IBKR does not provide tax advice. These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any international, federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor. We recommend that you consult a qualified tax advisor or refer to the US Internal Revenue Service.
Glossary terms:
How do I transfer my US securities positions from my current broker to IB?
Overview:
Broker to broker transfers for US securities are conducted via a process known as the Automated Customer Account Transfer Service or ACATS. This process generally takes between 4 to 8 business days to complete in order to accommodate the verification of the transferring account and positions. The request is always initiated via the receiving broker (IB in this case) and can be prompted by following the steps below.
1. Log into Account Management and select the Transfer & Pay and then Transfer Positions menu options.
2. From the Transaction Type drop-down list select 'Inbound Position'
3. From the Method drop-down list select 'ACATS'.
4. Enter the sending Broker Information in the fields provided, and click CONTINUE
5. In the Transaction Information section, indicate whether or not you wish to transfer all assets and select Yes to the authorization option.
a. Note that a "transfer all assets" election does not require that you specify any assets as an attempt will be made to transfer your account in its entirety. Account holders should note, however, that certain positions may not be on the list of securities eligible to trade at IB and others, while transferable, may be subject to a house margin requirement higher than that of the delivering broker. In the event IB receives an asset list from the delivering broker which includes ineligible positions or the aggregate of the positions transferred are such that a margin deficit would exist were the transfer to occur, IB will attempt to contact you to remedy the situation within the allocated time frame after which an automatic reject of the full transfer would take effect. Account holders may wish to minimize potential delays or problems associated with a ‘Full’ transfer request by verifying security eligibility and margin requirements via the Contract Search link located at the upper right hand corner of the IB homepage prior to initiating the transfer.
b. If you elect to not "transfer all assets", the system will require that you specify the positions you wish to transfer. Click Add Asset to add the positions you wish to transfer. Fill out the Asset Search and Transaction Information sections and click Continue.
6. On the page that appears, type your signature in the Signature field, and then click CONTINUE.
Click BACK to modify the transfer request.
Please note that brokers generally freeze the account during the transfer period to ensure an accurate snapshot of assets to transfer and may restrict the transfer of option positions during the week prior to expiration. You may wish to check with the delivering broker to verify their policy in this regard. In addition, please note if your IB account is currently maintaining positions on margin, any cash withdrawals or adverse market moves could increase the likelihood that your account falls out of margin compliance during the transfer period which may delay or prevent completion of the transfer.
IMPORTANT NOTICE
Applicants may meet the initial account funding requirement through the transfer of securities positions and/or cash via the ACATS system.
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