TDA Schwab Merger Resource Guide

TD Ameritrade Merger Resource Guide

The acquisition of TD Ameritrade by Charles Schwab & Co. should present minimal disruption to Plancorp clients provided those with existing accounts at TD Ameritrade have no concerns moving to Schwab. The transition of accounts will kick off later this month and fully culminate at the end of the summer.

We have been assured by the transition team that this should require minimal paperwork or steps for you, and we are staying close with our contacts to ensure a painless transition with as much parity between systems as possible when it comes to your information, data, preferences and features.

More information can be found below. We'll be keeping this page updated with the latest information and proactively stay in touch throughout the merger process with the latest information.

Will I have to do anything?

On August 1, Schwab will mail out packets with key information about your new account(s) including a prompt to create a Schwab Alliance ID and password. You will need to access your account to get key information after the transition, so be sure to check this. You'll be given the option to retain existing UserID or create a new one.

With your Wealth Management and Client Service teams on your side, there should be very little you need to do to ensure a successful transition!

On June 28th, 2023 you received a notification from TD Ameritrade with a negative consent letter. This notification will be delivered at the account level (not to each individual) via email or traditional mail depending on your current account preferences.

Later on in the transition you will receive a few more notifications including the delivery of your updated checks/debit cards (if necessary) and you will need to update direct deposit and/or recurring ACH instructions to your new account number.

Is my data secure through this transfer?

The MOVEit data breach was recently in the news and did impact a small portion of TD Ameritrade clients but we have confirmed with TD representatives that Plancorp was not impacted by this and Schwab has reiterated their dedication to cybersecurity.

When will the transfer be complete?

We are completing pre-transition work with Schwab and TD Ameritrade currently, but aspects of the transition will be occurring throughout the summer, culminating in a sunsetting of the TDA systems on September 5th.

- June 28th: You will receive a negative consent letter from TD Ameritrade

- August 1st: You will receive a key information packet to finalize details and preferences of your new Schwab account

- August 29th: New checks and debit cards will be delivered if you have used either in the last 24 months. Old account checks will still be valid for a set time after the transition, but we highly recommend switching immediately to prevent any issues.

- September 5: Account access only through Schwab from this date forward.

- October 5th: You will receive a letter verifying all of your new account details, completing the transition.

What information will be transferred?

10 years of history/documents converted.

Viewable on Schwab Alliance:
— 4 years of account history
— 10 years of statements
— 7 years of tax documents
— 2 years of trade confirmations
— 4 years of outbound check images
— Inbound check images available upon request

• Advisor authorizations (move money, trading)
• Most standing move money instructions used in the past three years preceding account conversion
• Fee authorization
• Federal and state withholding elections will convert as the minimum default value
• Cost basis and tax information
• Most proxy/reorganization voting/interim mailing preferences
• Margin, options, future, and foreign exchange approval status
• Most beneficiary designations
• Paperless preferences (will require credential creation to maintain)
• Duplicate confirmation and statement instructions

What we can do to aide in this effort is ensure the information within your current TD Ameritrade account is accurate. If you know of anything that needs to be updated, please reach out to your team!

Will my new Schwab account be linked in the Plancorp App automatically?

Yes. We will be linking new accounts on your behalf to make this transition seamless!

Will I receive new checks or a debit card?

So long as you have actively used payment features like checks or debit cards in the past 24 months, you will receive new checks and a debit card, mailed August 29th.

What's happening with new checks and debit cards?

New checks were mailed on August 29th and should arrive in September. If you haven't received checks or debit cards by September 15th, please contact your Wealth Manager for assistance.

Remember, your old TDA checks and debit cards can still be used for approximately 90 days, but the sooner you make the switch, the less chance there is of a payment failing.

When your checks or debit card arrives, please open them immediately and verify they are correctly titled before shredding old ones.

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Will Schwab & Co. be in touch regarding my accounts?

No one from TD Ameritrade or Schwab & Co should be contacting you regarding your accounts. If you receive a suspicious email, do not click any links or attachment. If you receive a phone call, be sure to hang up and contact Plancorp instead.

How will this impact my tax filings?

It's important to clarify that his is a non-taxable event because no securities will be sold during the transfer.

That said, you may receive multiple 1099s to support activity before and after the transfer. Do not be alarmed, this is fully expected.

Will Plancorp be able to access my new account?

Long story short, yes! Account permissions within your new Schwab account should be mirrored to what was available in your TD Ameritrade account, with those features like authorizations, statement preferences, and cost basis being replicated.

Will my direct deposit or ACH instructions transfer?

So long as the instructions were set up by Plancorp or by you within TD Ameritrade's system, yes. If they were set up via a third party (ex: to pay a bill or deposit their social security) you will need to update the account and routing number appropriately by October 5th.

Anything else I should know?

Your team at Plancorp will work diligently with the transition team to appropriately move our work in the old system over to the new system and partner with you to help sort through any of the client notifications or new account packets you receive. At any point if you have questions or concerns, please reach out directly to your wealth manager.

A Resource from Schwab

You can also review this webpage put together by Schwab, welcoming you into the new system and answering deeper level questions with more detail than provided above.