How to Close an LPL Financial Account
• An LPL Financial account can be closed using one of several methods.
• There may be a fee in some cases to close an LPL Financial account.
LPL Financial offers multiple methods to close an account with the firm. Be sure to observe the pointers in the following guide carefully to avoid any snags along the way.
Closing LPL Financial Account with an ACAT
One way to close an investment account with LPL Financial is simply to transfer it. When this is done using the fully-electronic ACAT transfer system, the account at the originating brokerage firm is closed. Be aware that the account will show up at a new investment firm, so if your goal is to get rid of the account altogether, and not just at LPL, this method won’t work.
To perform an account transfer from LPL to another securities firm, you’ll first need to open a new account with that second firm. Once this is done, assets from the LPL account can be moved through the ACAT network into the new account. To perform this type of transfer, simply contact the new firm and request a full ACAT transfer. It does need to be a full and not a partial transfer as the latter transfer type won’t close the account.
Besides calling the incoming brokerage firm, you might be able to submit an ACAT request online. Many securities firms today have digital ACAT tools that allow clients to submit requests in a matter of minutes. When making an ACAT request through any channel, you will need to supply your LPL account number, so be sure to have it handy.
There is no need to contact LPL Financial for this type of transfer. Once the incoming firm receives the ACAT request, it will notify LPL, and the two firms will perform the transfer.
One note of advice is in order here: LPL Financial conducts business in a wide variety of investment products, including variable annuities, limited partnerships, futures contracts, and other alternative investments. Futures contracts can never be moved through the ACAT network, and some securities like variable annuities may not be accepted at the receiving investment firm. It’s recommended to contact the new firm and verify if your positions at LPL will be accepted. Attempting to move a financial product that won’t be accepted can lead to all sorts of headache.
Any assets that can’t be transferred can be handled in one of two ways. Either it can be liquidated or transferred to another LPL account before submitting the full-account transfer request.
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Traditional Method to Close LPL Financial Account
The primary downside of closing with an ACAT transfer is the account lives on. If your goal is to get rid of the account altogether, another method must be adopted. The default method to close an account is to sell everything in the account, withdraw the resulting cash balance, and then reach out to the brokerage firm to request a closure.
Selling everything in the account may need the assistance of the account’s financial advisor at LPL. Once this step is completed, you’ll need to withdraw the cash balance to get the account to a $0.00 balance. At this point, it’s time to close the account. A closure request can be sent to LPL Financial in one of three ways:
(1) Contact the financial advisor and request the account be closed. This could be done when requesting the liquidation of positions.
(2) Call LPL Financial’s customer-service team at (800) 558-7567.
(3) Send a letter through snail mail or fax to the same customer-service department:
LPL Financial
P.O. Box 509049
San Diego, CA 92150-9049
Fax: (858) 202-8500
LPL Financial Termination Fees
Investment firms don’t like to lose clients, which is one reason some of them charge closeout fees, at least in some cases. LPL Financial charges $125 to close a retirement account (using the second method discussed above). Transferring any type of taxable account through the ACAT network is $125.
Don’t Forget the IRS
In some cases, Uncle Sam will want his slice of the pie. Selling assets in a taxable account or withdrawing cash from a tax-sheltered account will produce a Form 1099 during tax season. Be sure to visit with a CPA before taking either action.
LPL Financial Top Competitors
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Commission |
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Options
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Maintenance
Fee |
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Fee |
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Charles Schwab
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$0
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$49.95 ($0 to sell)
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$0 + $0.65 per contract
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$0
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$0
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Firstrade
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$0
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$0
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$0
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$0
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$0
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Robinhood
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$0
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na
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$0
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$0
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$0
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Updated on 2/15/2024.
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