Orion Portfolio Solutions

Charles Schwab / TD Ameritrade Integration: What You Need to Know

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OAT FAQ

Resources to Support Your Transition

Leverage the resources, timelines, and requirements below to help navigate your transition to Schwab and ensure a smooth experience along the way.

Tip: bookmark this page so you have easy access to all of the resources and requirements you'll need to navigate your transition to Schwab. 

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Transition Resources from Charles Schwab

Charles Schwab Advisor Services has created an Institutional Information Hub to help guide TD Ameritrade advisors through the upcoming transition. You will find a direct link to their site below, as well as other key transition tools they have created:

Communications from Orion Portfolio Solutions

For your reference, following are email communications sent to-date with information about the upcoming Schwab/TDAI integration. Please also check the Bi-Weekly Rundown email every other Thursday for updates.

TD Ameritrade vs Schwab

Topic TD Ameritrade Schwab

Statements

Shows advisor name on statement.

Will not include the advisor name on statements unless firm has completed the third-party statement process.

Forms

Allows all registration types on a single application.

Offers a specific application based on registration type.

Electronic Signature

Accepts SigniX in lieu of DocuSign and advisor's own DocuSign.

Does not accept SigniX or advisor's own DocuSign. Advisors will need to use DocuSign via Orion's Advisor Portal.

Systematic RMD

Allowed setup of systematic RMDs on Beneficiary IRAs, and advisors could sign the systematic RMD form if there was a move-money on file.  TDA had flexible systematic RMD capability.  This means that systematic RMD instructions WOULD automatically adjust if a separate distribution was taken from the account.  If the RMD had been satisfied earlier in the year from one-time withdrawals, then the scheduled systematic RMD would not occur. 

Only allows systematic RMDs for checks to address-of-record and like-titled transactions. There are no systematic RMDs on Beneficiary IRAs. The setup form for systematic RMDs from any IRA requires client signature even if there are permissions on file.  Please note that for Schwab Systematic RMDs - Schwab does NOT have flexible Systematic RMD capability.  This means Systematic RMD instructions will NOT automatically adjust if a separate distribution is taken from the account.  The systematic RMD will transact for the originally calculated RMD amount even if a one-time distribution was taken to satisfy the RMD earlier in the year.

New Accounts

Does not require additional paperwork for Trusts, SEPs, and Corporate accounts.

Will have additional requirements and paperwork for new Trusts, SEPs, and Corporate accounts.

New Accounts

Allows advisor to request an existing account be duplicated using a verbal and/or email request. 

Requires that advisor submit a new application for every new account opened. 

Check Hold

Holds a check that is not-in-good-order for 15 calendar days.

Holds a check that is not-in-good order for five business days. To prevent a check hold, please ensure your check is payable to Schwab and includes the full account number for deposit as well as any applicable coding (rollover, transfer, etc.). It is best practice to ensure your account has been opened and is in good order before sending your check in.

Tax Withholding Elections

Supports setting withholding elections for specific dollar amounts on systematic disbursements. Also supports different tax withholding elections for systematic disbursements.

Supports tax withholding elections (TWE) to a set percentage only. Does not support TWE set for dollar amounts. Also supports only one TWE for any disbursement for each account. When requesting a distribution, any modification made to the TWE, even for a one-time distribution, will automatically become the account's default election. Additionally, for tax withholding adjustments, if a client intends to reduce their withholding to 0%, a client signature is required via either the Tax Withholding Election Form or the IRA Distribution Form.

Advisor Authorizations & Adding Bank Instructions

Uses the Move Money form to authorize the advisor and add bank instructions.

Uses the Moneylink form to authorize the advisor, add bank instructions, and set up systematic contributions and non-retirement distributions.

REG T Violations

When checks, ACHs, wires, or transfers are returned or denied, they become a potential REG T violation. After T+5, TDAI would automatically provide us with an extension if not resolved. 

When checks, ACHs, wires, or transfers are returned or denied, they becomes a potential REG T violation. Schwab will not provide an extension, and at T+5 we are instructed to resolve on behalf of the client.

Simple IRA 

Does not differentiate between the employee/participant and the employer/owner of the plan/account. Allows ACH contributions directly into participant accounts. Does not differentiate between employee salary deferral and employer contributions. Directs employer to use the IRS Simple Model Adoption Agreement that does not need to be returned to TDAI. 

Creates separate roles for the employee/participant and the employer/owner of the plan. Established a 'Simple Master' also known as a 'Group Plan' account for each Simple IRA plan. The Simple Master/Group plan account enables ACH contributions into the master account. Differentiates between employee salary deferral and employer contributions. Has a simple prototype plan document and employer agreement that must be returned prior to establishing accounts. See Frequently Asked Questions for more information.

Questions or Concerns? 

We are here to help. Please contact your service team for additional support.

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