常見問題解答:英國脫歐相關賬戶遷移

簡介 

盈透證券集團(以下簡稱“IB”)及其英國子公司盈透證券(英國)有限公司(以下簡稱“IBUK”)一直在為英國脫歐過渡期結束(目前定於2020年12月31日)做籌劃,致力於為我們的歐洲客戶準備替代方案。我們的重點是把相關變化和影響降到最小,確保為客戶提供的經紀服務能夠無縫銜接過渡。此事件涉及的客戶將會收到通知,通知中會說明相關的變化和時間線。下方為從IBUK到我們其它歐洲經紀公司的賬戶遷移相關常見問題及解答。

常見問題解答 

問:2021年1月1日英國脫歐開始後IBKR將採取什麼措施確保經紀服務持續運行?

答:早在2018年,IBKR便設立了盈透證券盧森堡有限公司(以下簡稱“IBLUX”),並於2019年11月獲得監管授權。此外,我們目前還在著手創建兩家位於歐盟的經紀公司:盈透證券愛爾蘭有限公司(以下簡稱“IBIE”)和盈透證券中歐有限公司(以下簡稱“IBCE”)。 

我們計劃在2020年12月31日之前將所有受英國脫歐影響的客戶遷移到這三家位於歐盟的經紀公司(以下簡稱“歐盟經紀公司”)。遷移到IBIE和IBCE還需要獲得相關國家主管機關的監管授權。 

 

問:我們的賬戶要遷移到哪家IBKR經紀公司?

答:哪些賬戶要遷移到IBLUX、IBIE和IBCE這三家經紀公司中的哪一家尚未最終確定。我們預計大多數西歐客戶會遷移到IBIE,中歐和東歐客戶則遷移到IBCE,還有部分客戶會遷移到IBLUX。這其中客戶的賬戶類型和頭寸也會納入考慮。 

在最終發送遷移請求前,我們會向所有客戶發送通知,詳細說明其將被遷入的經紀公司。

 

問:此次遷移計劃涉及哪些客戶?

答:涉及的客戶包括居住在歐盟的個人客戶和在歐盟國家成立的實體客戶。這些賬戶大部分都開立在盈透證券(英國)有限公司。

 

問:通過什麼方式徵求客戶同意?

答:我們準備好遷移賬戶後,您會收到一封郵件讓您登錄客戶端。登錄後,您會看到相關披露文件和客戶協議,您可以以電子方式在線表示同意。未對最開始的郵件作出回應的客戶將會收到一系列後續提醒郵件。

 

問:如果我不做任何操作會怎麼樣?

答:如果未能作出回應表示同意,您的賬戶最終會受到交易和轉帳限制,就如同您不同意遷移一樣。另外請注意,您的賬戶將繼續適用當前協議的條款和條件(包括費用和保證金政策),直至完成遷移到指定歐盟經紀公司、遷移到IBKR以外的其它經紀公司或關閉。

 

問:如果我不同意遷移會怎麼樣?

答:如果您不同意將賬戶遷移到指定歐盟經紀公司,您的賬戶將受到限制、無法開展新的交易或轉入更多資金和/或頭寸。該等限制不會阻止您將賬戶遷出IBKR。 

 

問:我的登錄信息會變更嗎?

答:不會。您當前賬戶的用戶名、密碼和雙因素驗證程序在遷移後仍然有效。但是,遷移的賬戶會有新的賬戶號碼。

 

問:遷移後我還可以訪問現在的交易平臺嗎?會有什麼軟件方面的變化嗎?

答:遷移不會對您用於交易和管理賬戶的軟件造成任何影響。所有的技術都不會發生改變。

 

問:所有賬戶餘額也會遷移嗎?

答:除應計項目(如利息和股息)之外的所有餘額也會一併遷移。應計項目會在實現現金後遷移。如果是利息,應計項目通常是逆向的,現金會在應計款項下一個月的第一周記入賬戶。如果是股息,應計項目是逆向的,抵消現金會在發行發支付股息的當天記入賬戶。

 

問:遷移後我當前的賬戶會怎麼樣?

答:所有應計項目都記入為現金並轉入遷移賬戶後,您當前的賬戶便會關閉。關閉後,賬戶將無法用於交易。但是,您仍可以通過客戶端的賬戶選擇器訪問此賬戶,查看或打印歷史報表。

 

問:賬戶遷移後,IBKR的傭金費用會發生變化嗎?

答:不會。IBKR的傭金和費用不會因您賬戶所在的經紀公司發生變化。

 

問:賬戶遷移後,我的交易許可會發生變化嗎?

答:您的交易許可將保持不變,但遷移到IBLUX的賬戶由於監管限制將無法進行杠杆外匯交易。儘管目前看來IBIE和IBCE的賬戶沒有類似限制,但如果政策調整,我們會在遷移前通知您。 

 

問:賬戶遷移後,未完成的定單(如取消前有效定單)會被保留下來嗎?

答:未完成的定單將被轉到新賬戶,但是,我們建議客戶在遷移後立即對定單進行檢查,確保定單符合其交易目的。

 

問:賬戶遷移後,我還受美國典型日內交易規則限制嗎?

:在IBUK開立的賬戶由於最終是被引入美國經紀公司IBL並由IBL提供底層清算,因此適用美國典型日內交易(PDT)規則。根據PDT規則,資產低於25,000美元的賬戶任意5個工作日內日內交易不得超過3筆。 

而遷移到IBLUX、IBIE和IBCE的賬戶不再是引入IBL,因此不再適用PDT規則。

 

問:年末我會收到一份合併的年度報表嗎?

答:不會。您會收到一份當前賬戶的年度報表(時間範圍為2020年1月1日至遷移日)和一份遷移後新賬戶的年度報表(時間範圍為遷移日至2020年12月31日)。

 

問:賬戶遷移後,當前賬戶內頭寸的成本基礎是否會保留到新賬戶?

答:是的。遷移不會影響您頭寸的成本基礎。

 

問:遷移後的新賬戶是否會保留當前賬戶的配置?

答:在法規允許的範圍內,遷移後的賬戶配置會與當前賬戶的配置保持一致。這包括保證金、市場數據、多個使用者和警報等屬性。在有限的情況下,賬戶會被遷移到無法支持全部產品的行政轄區。持有受限產品的客戶可以進行遷移並維持或平倉該等產品的頭寸,但無法增加新的頭寸。 

 

問:如果IBKR在2020年12月31日前未能取得遷移所必需的監管許可會怎麼樣?

答:IBLUX已經獲批,但在業務規模方面受到一定限制;因此要在2020年12月31日前完成遷移就必需要獲得IBIE或IBCE的許可。如果確定這兩家經紀公司都無法及時拿到許可,我們會聯繫客戶解釋英國脫歐過渡期結束後其賬戶的處理方案。

 

問:遷移後我還能繼續向英國申訴服務機構(FOS)提交投訴嗎?

答:IBUK的客戶可以將在IBUK未得到滿意解決的投訴提交給英國金融申訴服務機構處理。但遷移到IBLUX、IBIE或IBCE之後,英國金融申訴服務機構將不再適用,我們會為您提供新的替代服務相關信息。請注意,遷移不會影響我司內部的投訴處理流程。

 

問:遷移對數據保護有什麼影響?

答:賬戶從IBUK遷移到IBLUX、IBIE或IBCE並不會對我們根據數據保護規則對您個人信息實施保護的方式造成任何影響。IBLUX、IBIE和IBCE均會承擔數據保護責任,繼續按照我們一貫的高標準保護您的個人信息。 

 

問:我的賬戶保障會有什麼影響?

答:在歐盟,發生經紀商違約的情況下客戶的保險保障通常會不如在英國或美國。 

目前,如果滿足資格要求,IBUK的客戶在投資服務方面可享受英國金融服務補償計劃(以下簡稱“UK FSCS”)最高達50,000英鎊的保障。由於IBUK的客戶由我們的美國經紀公司IBL進行底層清算,其賬戶的證券賬戶段可以參加證券投資者保護公司(以下簡稱“SIPC”)的保險,保額最高達500,000美元(其中現金不超過250,000美元)。 

而在歐盟經紀公司,IBLUX、IBIE和IBCE的合資格索賠人最多可以申請20,000歐元的賠償。有關具體方案、保險範圍和索賠資格的更多信息會同遷移請求一併發送給您。  

鑒於盈透證券集團82.5億美元的總資本以及在集團所有經紀公司推行的審慎保證金政策(包括接受定單前的預先信用檢查以及對不滿足保證金要求的賬戶進行自動平倉清算),我們相信此次遷移並不會對客戶資產的總體安全穩健造成影響。

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Converting From a Single to Joint Account

The process of adding a second owner to an existing single account for purposes of converting to a joint account is outlined below:

1.       As the joint account structure differs from that of the individual in terms of account holder information required, legal agreements and, in certain cases, taxpayer status, direct conversion is not supported and a new joint account application must be completed online.
 
The joint application may be initiated online from the single account by logging into Account Management and clicking the Settings and Account Settings options followed by clicking the gear icon next to the words "Create, Move, Link or Partition an Account" in the Configuration section. This process will allow you to retain your existing user name, password and security device for purposes of operating the joint account. Be sure to request trading permissions and, if necessary, margin status, sufficient to maintain the positions currently carried in your individual account.  Note that if your account is managed by a financial advisor or you are a client of an introducing broker, please contact your advisor or broker to initiate the new application (you may need to make arrangements with your advisor or broker for fees that have accrued but not yet paid if the individual account closes).
 
The joint account application requires Compliance review and approval and documentation evidencing the identity and address of the second account holder may be required. If this is the case, notice as to the required documents and how to submit will be provided at the conclusion of the online application.
 
 
2.       Once you have received an email confirming approval of the joint account application, send a request from your Message Center authorizing IB to manually transfer positions from your single to joint account. Prior to submitting the request you should make sure to close all open orders in the individual account to ensure that no executions take place following the transfer.
 
Due to the manual steps and scheduling required, you should allow a minimum of one week after joint account approval and submitting your request for the transfer to take effect. 

 

IMPORTANT NOTES
 
1.       Note that exchange regulations preclude ownership transfer of derivative contracts such as futures and options. If you are holding such positions you would either need to close them prior to the transfer taking place or request that they remain in your individual account.
 
2.       Prior to processing the transfer, you should make sure to close all open orders in the individual account to ensure that no executions take place following the transfer.
 
3.       The SMA (Special Memorandum Account) balance in your individual account will not transfer to the joint account. In certain cases this may impact your ability to open new positions in the joint account on the first day after the transfer is completed.
 
4.       Elective options such as market data subscriptions and participation in IB's Yield Enhancement Program will not be carried over to the joint account and must be re-initiated to continue.
 
5.       The cost basis of transferred positions as reported in the activity statements will remain unchanged for tax purposes.  The cost basis as reported in your trading platform (which is not used for tax reporting purposes) will not transfer over to the joint account but may be manually adjusted.
 
6.       Once the transfer has been completed and assuming all positions have been transferred your individual account will be designated for automatic closure. Note that certain balances such as dividend accruals can’t be transferred until paid, after which they will then be transferred and your individual account closed.
 
7.       You'll receive any applicable tax forms for the reportable activity transacted in each of your individual and joint accounts at year end. Access to Account Management for you individual account will remain after it has been closed for the purpose of reviewing and printing activity statements and tax forms.
 
8.       IBKR does not provide tax advice or investment guidance and recommends that account holder consult with qualified professionals to determine any legal, tax or estate planning consequences associated with single to joint transfer requests.

How to Reopen a Closed Account

Accounts which have been closed are generally eligible to be reopened, subject to the following:

 

1.       The account was opened after January 1, 2002;

2.       The taxpayer status of the account is properly documented;

3.       The account is compliant with respect to all documentation required for regulatory purposes;

4.       If the account is a sub or client account of a master, the master account is open.

 

The reopening request may be submitted online by logging into Account Management and selecting the Manage Account, Settings and then Reopen Account menu options (Note that the email and password combination necessary to log in remain the same as that at the point your account was closed). Alternatively, requests may be submitted by contacting your local Client Service Center.

 

Once your request has been submitted it is subject to review by our Compliance Department. Please note that these requests are processed in the order by which they are received and you should allow a minimum of 48 hours to complete.

 

Notification of approval is sent to the email address of record, after which you will need to log into Account Management and submit a deposit notification.  The minimum deposit required to re-open is USD 10,000, or equivalent; the same as that for opening a new account.

 

Also note that in certain instances, you may be required to update account information and/or documents which are deemed by our Compliance Department to be obsolete.  If this is required, you will receive an email outlining those which are required. 

W8 Re-certification

If you are not a U.S. citizen or entity formed within the U.S. and have an account with Interactive Brokers, you are requested to declare your citizenship or country of formation with the US tax authority (IRS). This declaration can be done online by correctly filling out the W-8BEN form. Filling out this form is an easy process that only takes a few minutes. In the short movie below, we show you where to find the W-8BEN in your IB account management and how to fill it out.

If you fail to declare your foreign citizenship or country of formation, and IB does not have a valid W-8BEN form on file, you are presumed to be a US person/entity without a proper tax certification. As a US person/entity, you will be subject to backup withholding at a rate of 28% on interest, dividends, and substitute payments in lieu; as well as gross proceeds. 

Every 3 years the IRS requires a re-certification of the W-8BEN form. IB will ask the beneficial account owner to re-certify their foreign status by re-signing the W8-BEN in order to continue their status as a foreign person and claim the tax treaty benefits. If you experience any problems or have questions regarding the W-8BEN form or how IB handles Non-US persons and entities, select this Tax Information and Reporting link and choose the tab Non-US Persons and Entities or consult the following IRS information page for more details: www.irs.gov/instructions/iw8/ch02.html

Cost Basis Reporting

 

1099 Reporting

Year End Reports

Account Transfers

 

1099 Reporting 

Statement and Year End Reporting for US persons and entities comprises the following:

1.  Cost Basis:  While the required reporting schedule was staggered, the primary cost basis that will be reported to the IRS includes equities bought and sold after December 31, 2010.  This includes the adjusted cost basis resulting from wash sales and corporate actions.

The future phase-in period for broker reporting includes the assets sold on or after the following dates:

--- Mutual Funds and  ETFS - 1/1/2012

--- Simple debt instruments (i.e. treasuries, fixed-rate bonds & municipal bonds) and options,  - 1/1/2014

--- Other debt instruments - 1/1/2016

2.  Tax Basis Method:  Brokers are required to use the method first in, first out (FIFO), unless given other instructions by an investor.  Changes to your tax basis method may be submitted through the Tax Optimizer.  The Tax Optimizer is launched from within Account Management and is available for stock, option, bond, warrant and single-stock future trades.  

IB offers multiple  tax basis methods, including three basic options:

●        First In, First Out (FIFO) - This is the default option.  FIFO assumes that the oldest security in inventory is matched to the most recently sold security.

●         Last In, First Out (LIFO) - LIFO assumes that the newest security acquired is sold first.

●         Specific Lot - Lets you see all of your tax lots and closing trades, then manually match lots to trades. Specific Lot is not available as the Account Default Match Method.

Tax Optimizer also lets you select the following additional derivatives of the specific identification method.

●        Highest Cost (HC), Maximize Long-Term Gain (MLTG), Maximize Long-Term Loss (MLTG), Maximize Short-Term Gain (MSTG), and Maximize Short-Term Loss(MSTL).


For complete instructions on using the Tax Optimizer and details on the lot-matching algorithms for each method, see the Tax Optimizer Users Guide.

Note:  Changing your tax basis is effective immediately.  The basis selected will be applied to all subsequent trades on the account statements and tax reports.  Updates will not affect previously closed trades nor the TWS profit and loss data displayed.


3.  Gain & Loss Categories:  An additional requirement to the cost basis reporting is the capital gain or loss category.  The gain or loss category of equities is determined by the length of time in which the security was held, known as the "holding period." 

●         Short-Term - Holding periods of one year or less are categorized as "short-term."

●         Long-Term  - Holding periods over one year are categorized as "long-term."

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Year End Reports

The following statements and reports display cost basis information that will be reported on Form 1099-B for eligible accounts.

  • Monthly Account Statements
  • Annual Account Statements 
  • Worksheet for Form 8949

For a complete review of the tax information and year end reporting available, click here.

Note:  Unlike the Account Statements, the Gain & Loss Worksheet for Form 8949 may consolidate sell trades.  The cost basis will be adjusted, as required for 1099-B reporting.

 

Asset Transfers

U.S. legislation from 2008 included new guidelines for tax reporting by U.S. financial institutions.  Effective January 2011, U.S.  Brokers are required to report cost basis on sold assets, whether or not a gain/loss is short-term (held one year or less) or long-term (held more than one year).   U.S. brokerage firms, Interactive Brokers LLC (IB) included, implemented changes to comply with the legislation.

For more information on cost basis with asset transfers, see Cost Basis & Asset Transfers.

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Disclaimer:  IB 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 adviser or refer to the U.S. Internal Revenue Service.

ACATS Transfer Guide (US brokerage account transfers)

ACATS Transfer Guide

Introduction

ACATS Transfer Benefits

Navigating The Process

Incoming Or Outgoing

Initiating Your Transfer

What To Expect

Who To Contact For Help

 

Introduction

Understanding the basic facts about transferring accounts between US brokerage firms can be help to avoid delays.  Through this article and other Knowledge Database resources, Interactive Brokers seeks to assist with your incoming and outgoing ACATS requests.

US brokerage firms utilize a standardized system to transfer customer accounts from one firm to another.  Known as the Automated Customer Account Transfer Service or ACATS, the process allows assets to move seamlessly between  brokerage firms in a unified time frame.   ACATS transfers are facilitated by a third party, the National Securities Clearing Corporation (NSCC), to assist participating members with timely asset transfers.

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ACATS Transfer Benefits

The majority of assets may be transferred between US brokerage firms and some banks through ACATS.  This standardized system includes stocks, US corporate bonds, listed options, unit investment trusts, mutual funds, and cash.  Information on assets eligible for transfer is provided at "Assets Eligible..."  Though impacted by multiple factors and time constraints, the accepted or rejected transfers finalize within 10 business days in most cases.

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Navigating The Process

4 simple steps of the ACATS process will help you understand the flow and minimize delays.  Familiarizing yourself with the transfer process helps to ensure a successful transition.

1.  Incoming or Outgoing

2.  Initiating Your Transfer

3.  What to Expect

4.  Who to Contact For Help 

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 1. Incoming or Outgoing

 

Incoming ACATS Transfers

The financial institution that is receiving your assets and account transfer is known as the "receiving firm."  Investors always work with and through the "receiving firm" to move full or partial account assets into a new broker. 

Contact the "receiving firm" (Interactive Brokers) to review the firm's trading policies and requirements.  You should verify that your assets are eligible for trading at the "receiving firm" before initiating the transfer request.   Not all ACATS transferable assets are acceptable for trading at every brokerage firm.

Outgoing ACATS Transfers

All outgoing ACATS transfers, full or partial, must be approved by the "delivering firm."  Investors, however, should work with and through the "receiving firm" in order to begin the the transfer process or to status the progress of the request.      

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2. Initiating Your Transfer

Investors must always begin the ACATS transfer with the "receiving firm."  An ACATS transfer form or Transfer Initiation Form (TIF) must be submitted.  The "receiving firm" takes your reqeust and communicates with the "delivering firm" via ACATS.  The process begins with this request for transfer of the account. 

For your Interactive Brokers Account, the transfer is usually submitted online.  Video instruction on submitting the transfer is provided at "How to deposit funds via a full ACATS/ATON Transfer."  or through Step-by-step instructions.

Note: Outgoing account transfers from your IB account should be directed to the other broker.  Your request will be submitted to IB from the other broker through the ACATS electronically.

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3. What to Expect

Your Account

Brokers ensure the safety and security of transfer requests by only authorizing requests between open accounts that meet the following criteria:

  • Same Account Title
  • Same Tax ID Number
  • Same Account Type

Transfer Approval

Ultimately responsible for validating the transfer,  the "delivering firm" may accept  information from the "receiving firm" correcting data originally entered.  Approved or validated requests result in the delivery of positions to the "receiving firm" for their acceptance.   Assets may not be accepted by the "receiving firm" for the following:

  • Non-marginable or Margin (credit) violation
  • Not Tradable
  • DTC Chill

Note: The most common reasons for ACATS rejections are outlined by clicking here.

Processing Time-frame

The processing time for each transfer request is fixed.  In general, approved transfers complete within 4 to 8 business days.  Almost all transfers complete within 10 business days.  Each firm is required to perform certain steps at specific intervals in the process.  Feel free to review the Full ACATS transfer process flow.

 

Fees

While Interactive Brokers does not charge a fee to transfer your account via ACATS, some brokers do apply a fee for full and partial transfers. Prior to initiating your transfer, you should contact the "delivering firm" to verify any charge.

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4.  Who To Contact For Help

Interactive Brokers Customer Service stands poised to assist with your incoming ACATS transfer reqeust.  Click here for Customer Service contact resources.

Note:  Outgoing or ACATS transfers sending accounts to another broker should be directed to the "receiving firm."  Their Account Transfer Group will work with Interactive Brokers directly to complete your outgoing request.

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Tax Treaty Benefits

Overview: 

Income payments (dividends and payment in lieu) from U.S. sources into your IB account may have U.S. tax withheld.  Generally, a 30% rate is applied to non-U.S. accounts.  Exemption from the withholding or a lower rate may apply if your home country has a tax treaty with the U.S.  Complete the applicable Form W-8 to find out your status. 

Background: 

Tax Treaties*

U.S. tax treaties with some countries have different benefits.  Legal tax residents of the following countries may be eligible for the treaty benefits.  Below is a list of the tax treaty countries.  Benefits vary by country.

Australia Czech Republic India Lithuania Sweden
Austria Denmark Indonesia Poland Switzerland
Bangladesh Egypt Ireland Portugal Thailand
Barbados Estonia Israel Romania Trinidad & Tobago
Belgium Finland Italy Russia Tunisia
Bulgaria France Jamaica Slovak Republic Turkey
Canada Germany Japan Slovenia Ukraine
China, People's Rep. Of Greece Kazakhstan South Africa United Kingdom
Commonwealth of Ind. States Hungary Korea, Rep. of Spain Venezuela
Cyprus Iceland Latvia Sri Lanka  

*Country list as of April 2009

 

Refer to IRS Publication 901 for details on withholding rates for your tax residence country and your eligible benefits.

 

Which Tax Form Should I Select?

Overview: 

3 simple questions can help you choose a tax certification form.   Read the questions and select the form.  For more detailed help, see Tax Information & Reporting.

Question # 1:      Are you a U.S. Person or a U.S. Entity?

• U.S. Citizen • U.S. Business or Organization
• U.S. Green Card Holder • U.S. Domestic Trust
                                       • U.S. Legal Resident

If the answer is YES, complete Form W-9

If the answer is NO, go to # 2.

Question # 2:      Do you have a U.S. Visa?

 

• H-1B Visa Holder • TN Visa Holder         
                                         • O-1 Visa Holder

If the answer is YES, find your status by the "substantial presence test." See More U.S. Legal Resident Info 

If the answer is NO, go to # 3.

Question # 3:      Are you a Legal Resident or Entity of another country?

                                      *Question does Not apply to U.S. Citizens/Entities or Green Card Holders

• Permanent Home Outside of U.S • Entity Formed Outside of U.S.
                                      •Business or Organization formed outside of U.S.

If the answer is YES, complete Form W-8  (U.S. Citizens, Green Card Holders, and Entities still complete the W-9.)

NOT SURE because you work, live, or study in the U.S. then, see More U.S. Legal Resident Info 

 

Disclaimer:  IB 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 adviser or refer to the U.S. Internal Revenue Service.

Certify Your Tax Status

Overview: 

Filling out a tax certification form is required to open an IB account.  The forms confirm your tax status in relation to the United States.  Information provided by you may lower or exempt the U.S. tax withholding on your account.

Background: 

This article will help you to:

►Choose the correct certification form                            ►Find your tax treaty benefits

►Fill out and submit your form online                              ►Answer tax certification questions

 

 

 

 

Which Form Do You Pick?

Tax Treaty Benefits

Management of account activity differs for each account type.  IB is a U.S. broker and must follow U.S. guidelines.  3 simple questions help you choose the right form

Some countries have a tax treaty with the U.S.  Find out if you benefit from a lower tax-withholding rate. Tax Treaty Benefit Info

Filling Out The Form

Tax Certification – FAQ’s

The certification form is direct.  Supply basic account information on the true owner of the assets or entity.  Select  W-9 Instructions or W-8 Instructions for help. Seek professional advice for tax questions.  These common questions and answers may help you make an informed decision.  Tax Certification - Frequently Asked Questions

 

 

 

Disclaimer:  IB 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 U.S. Internal Revenue Service.

 

 

How and When to Use a Direct Rollover

Overview: 

This information is for general educational purposes only.  Individuals should consult with their financial adviser or legal counsel to determine how rollover regulations affect their unique situations.

Generally, an investor changing jobs or leaving the workforce may utilize either a Direct Rollover election to continue their retirement savings outside of their employer-sponsored retirement plan.   Assets distributed directly to your IRA from the retirement plan may qualify as a Direct Rollover.

What is a Direct Rollover?

The Direct Rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute to another retirement plan, including an IRA.  The contribution to the IRA is called a rollover contribution.  The Direct Rollover method transfers the assets directly from the retirement plan (and not to the IRA owner) into the investor's IRA, avoiding the 20% mandatory IRS withholding.  This option to transfer retirement assets has no age limitations.

Eligible retirement plans include:

  • Employer's qualified pension, profit -sharing, or stock bonus plan
  • Annuity plan
  • Tax sheltered annuity plan (section 403(b) plan)
  • Governmental deferred compensation plan (section 457 plan)

Who do you contact first? 

Contact your retirement plan administrator or the human resources office for eligibility and requirements.  The plan administrator is required to provide a reasonable direct method of asset transfer.   Completion of an IRA Rollover Form provided by the administrator may be required, in some cases.  In other cases, the plan accepts an IRA Rollover Form supplied by your IRA's broker.  Therefore, it is important to check with the plan administrator.

Initiating your Direct Rollover through IB 

For those transfers that require a broker-supplied IRA Rollover Form, Interactive Brokers provides a convenient IRA Rollover Form.  Interactive Brokers will forward the request to the plan administrator or broker for processing.  Funds may be transferred by either wire transfer or check directly to Interactive Brokers.

Before accepting an IRA rollover transaction into an IRA, we require that you review your eligibility for the rollover and certify your understanding of the rollover rules and conditions.  The IRA Rollover Form includes the Rollover Form and an IRA Rollover Certification Form.

The Fund Transfers page within the Account Management lets you notify IB of an IRA Rollover deposit of funds into your account.  Select the Funding tab in the header link and choose Deposit Funds in the Transaction list.   In the Method list, select Direct Rollover.  Complete, sign, and return both forms to the Interactive Brokers address on the form.

Contact Customer Service with any additional questions.

 

 

In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this article was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.

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