How to Close a Raymond James Account: Points
• An IRA at Raymond James can be closed by a full ACATS transfer or by requesting an account closure.
• Raymond James does charge a fee to close an IRA.
• Withdrawing cash from a Raymond James IRA could have tax consequences in some cases.
Closing a Raymond James IRA or other account type doesn’t have to be a pain. Follow our simple guide below to make the process as easy and trouble-free as possible.
Raymond James Closing Fee
Raymond James closing fee related to the termination of a retirement account through a distribution
is $100.
Raymond James Transfer Fee
Raymond James closing fee (ACAT fee) related to the external transfer of an account from Raymond James
is $125.
Using the ACATS Network to Close a Raymond James Account
The first method we’re going to look at to close an account at Raymond James is by transferring
it to another investment firm via the ACATS (Automated Customer Account Transfer Service) network.
When a full-account transfer is performed through the ACATS system, the account at the original firm
is automatically closed.
IRAs and many other account types can be moved through the ACATS electronic network, so it’s a viable
option for account holders at Raymond James. Both brokerage and investment-advisory accounts can be
moved through this system, so it’s a good option for almost any account setup with Raymond James.
To perform an account transfer from Raymond James to another investment firm, you’ll need to reach out to that second firm and request a full ACATS transfer from Raymond James. We do emphasize “full” transfer because a partial transfer won’t close the outgoing account, which is what we’re trying to do here. A full transfer will move everything in the account to the receiving firm, at which point the outgoing account will be closed.
When requesting the full ACATS transfer out of Raymond James with the second investment firm, you’ll need your Raymond James account number. Most brokerage firms nowadays have user-friendly online ACATS forms that take just a few minutes to fill out. You will first need an IRA (or whatever account type you’re trying to move) at the second firm. Again, most firms today have convenient online forms to open IRAs and other accounts, so this step should take just a few minutes as well.
Permission from Raymond James is not necessary to move an account to another securities firm. Simply open the IRA at the second firm, fill out the online ACATS request form, and the second firm will notify Raymond James to send the account over. Once this is done, the account will be closed at Raymond James.
Keep in mind that some asset classes, such as annuities and structured investments, may not be accepted at all investment firms, so you may want to check with the receiving firm before requesting a transfer to verify that investments held in the Raymond James IRA can be moved over.
Closing Raymond James Account by Selling and Withdrawing
If the ACATS transfer won’t work for you, there is still the traditional method of closing an account simply by selling everything, withdrawing the cash balance, and then closing the account. The account first must be reduced to cash by selling everything, a task that may need to be requested through the financial advisor connected to the account. After that has been done, the cash needs to be withdrawn. Once the account has a $0 balance, you simply need to request the account be closed (this could be requested in the first step).
Consider Tax Implications
The second method, selling everything and withdrawing the cash balance, could have tax consequences in an IRA, at least in some cases. The age of the account owner and the account itself, and the tax structure of the IRA (Roth or traditional), could affect the taxability of the withdrawal. Be sure to consult with a licensed tax professional before taking this step with an IRA. An in-kind transfer through the ACATS network from one IRA to another IRA is not a taxable event, although you should still consult with a tax advisor before opting for this route.
Raymond James Closure Fees
Did you think Raymond James would let you off the hook so easily? No, the investment firm wants you to
stay put, which is why the firm charges a $100 fee to close an IRA using the second method described
above (closing by full cash withdraw). If you take the cash out by wire or check instead of ACH, you
could get hit with a second fee (some accounts are exempt from these fees, which are either $25 or $40).
The first method (closing by ACATS transfer) costs $125.
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Updated on 2/6/2024.
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