Transfer Acorns to Charles Schwab

Transfer Charles Schwab to Acorns OR Acorns Account to Charles Schwab in 2023


How to move Charles Schwab stocks to Acorns or vice versa (ETFs, IRA, brokerage assets, and money). How much does a transfer cost and how long does it take.


Account Transfers Between Schwab and Acorns


Moving a brokerage account from Charles Schwab to Acorns or from Acorns to Schwab is possible, although only if done in a very specific way. This is because Acorns doesn’t accept or send ACAT transfers. Therefore, an alternative method must be used in either direction.


Transfer an Account from Schwab to Acorns


First, you need to open an Acorns account.

Acorns will only accept transfers of cash. It will not accept transfers of securities through any method, such as DTC, ACAT, or otherwise. Therefore, to move an investment account from Schwab to Acorns, the first step is to sell everything in the Schwab account so that all holdings can be turned into cash.

Remember that selling securities in a taxable account could result in tax implications, and withdrawing cash from a tax-advantaged account could do the same. Therefore, be sure to consult with a licensed tax pro before committing to either course of action.

Once the Schwab account has been reduced to cash, it’s time to move this money to a linked checking or savings account. Before this migration can be accomplished, sales may need to settle, which could take a couple of business days in the case of stocks and ETFs.

Once the cash is ready to be moved out, head over to the More page on the Schwab mobile app (find the More icon in the bottom menu) and select Transfers & Payments. On the next page, tap on Transfers and then complete the form to transfer funds to a linked bank account.


Transfer from Acorns to Schwab


If you don’t have a bank account linked to the Schwab account, one can be added on the website. The mobile app doesn’t have this capability.

Once the funds arrive in the external deposit account, you’ll need to send these funds to the brokerage account at Acorns, which should be open at this point. To make a deposit into the new Acorns account, a one-time deposit or recurring deposit schedule can be established using either the mobile app or website.


Transfer from Schwab to Acorns


Once the funds arrive in the Acorns account, the broker’s digital investment guru will allocate the money into a variety of low-cost ETFs.


Open Acorns Account



Open Acorns Account


Transfer an Account from Acorns to Schwab


Going in the other direction will follow a somewhat different path if you want to keep your ETFs. These can be moved into a self-directed account at Schwab but not into a robo account (Schwab will only allow cash to go into an automated account).

To push securities into a self-directed account, a non-ACAT transfer out from Acorns is possible. Notice that we said, “possible,” not easy or convenient. Here are the steps:

(1) Contact Schwab and request a non-ACAT transfer from Acorns. You will need physical paperwork for the transfer.

(2) With the physical paperwork in hand, you’ll need a medallion signature guarantee on it. This can be obtained at a local financial institution.

(3) Submit the final paperwork to Acorns via email (help@acornssecurities.com) or snail mail:

Acorns Securities
ATTN: Account Transfers
5300 California Ave, Bldg 1
Irvine, CA 92617

After Acorns receives the paperwork, it will email the account holder for verification. If Acorns doesn’t receive a response confirming the transfer, it will cancel it.

Only whole shares can be moved out of Acorns. The broker will convert any fractional shares into cash, and this cash balance will be moved to a linked bank account.

To move an Acorns account into a robo account, the entire Acorns account will have to be liquidated to meet Schwab’s cash-only policy. This could actually be easier because of the elimination of the bureaucracy inherent in the non-ACAT transfer Acorns offers. But again, selling will be required to obtain the cash that will be withdrawn. Either event could result in tax implications.


Schwab Alternatives


Broker Review Promotion
Offer
Stock/ETF
Commission
Mutual Fund
Commission
Maintenance
Fee
Annual IRA
Fee
TD Ameritrade Get $0 commissions and ACAT fee reimbursement. $0 $49.99 ($0 to sell) $0 $0
Firstrade Earn up to $4,000 cash bonus and $200 transfer fee rebate. $0 $0 $0 $0
Chase Get up to $625 when you open and fund a J.P. Morgan account. $0 $0 $0 $0


Possible Cost of Switching


Schwab doesn’t charge commissions on sales of most US-listed stocks and ETFs, but liquidation of other assets could carry fees. There could also be a fee for a medallion signature guarantee.


How Long Does an Account Transfer Take?


Transferring from Acorns to Schwab could take a few weeks due to the amount of red tape involved. Going the other way could face a similar time to completion due to selling assets, waiting for the trades to settle, moving cash to a bank account, waiting for the cash to be available for withdrawal, and finally transferring to Acorns.