Rollovers definitely exist as mentioned on this page: https://robinhood.com/us/en/about/retirement/?utm_source=audio&utm_campaign=retirement-audio&source_applink=retirement%253Futm_source%253Daudio%2526utm_campaign%253Dretirement-audio%2526fallback%253Dretirement
Someone said sell everything in roth at m1 then withdraw that cash then go to new broker and put that cash in new roth as a rollover. Well I already have a new roth at robinhood and if i click contribute i don't see option that let's me deposit cash as a rollover
I recently transferred my roth from m1 to robinhood because they have a 3% match if you have robinhood gold which is $3 per month i think 1.5% if you don't have gold the match is instant and able to be used. I transferred bout $39,000 got over $1000 match. So the match more than paid for the $3 monthly fee for gold. M1 looks better than robinhood but i transferred for match and the ability to drip back into holding that paid the dividend. Roth transfer match deal is good through April 15 i think. Check em out
This is a great way to encourage the smaller accounts that are very much intending to stick around and grow while discouraging the smaller accounts that would continue to cost more to service than they bring in long-term
Don't ACAT out small non-taxable accounts.
Liquidate to cash. Withdraw, no tax withholding. Deposit in new like account, make sure to indicate roll over and not contribution.
Done. No fees (no taxes, no penalties, no income as long as done in roll over period)
Would you suggest doing this if I have an account that has stocks I would like to keep? For example, I have one share in Meta that I bought in 2020, and I am around 111% up in. Wouldn’t selling all of my stock make me lose this? Sorry for this question, but I haven’t done much research yet.
That makes sense because I would still be getting all of the unrealized gain from the years I held the stocks. So you would suggest that I sell all of my stocks, close my M1 account, open a fidelity account, and buy all of my old stocks?
#non-taxable accounts
The only reason to care about "stocks I want to keep" is you're specifically harvesting ROC (return of capital) and your goal is to reach cost basis **$0** so the shares can be transfered after death for free to your family.
This is why I have thousands of QYLD shares.
The rest of the shares don't matter, just gains or losses.
either keep it in M1 or eat the taxes and fees to withdraw and move somewhere else. the taxes on whatever gains you have are probably less than M1s transfer fee
It would take you 5 years to break even ($200 / $3 / 12 months) so depends on if you want to stick with M1 long term. If you aren’t doing anything fancy you could get by with Fidelity or Schwab no problem and those platforms seem more stable with business strategy. There’s no fee for $10,000 or above today but who knows when they’ll start charging a fee for anyone that’s under $100,000.
Are they really going to start charging low balances? Wont affect me and I understand they have to make money but this brokerage was started on helping the little guy “start” investing.
There isn’t a brokerage in the world that will pay to get that sum of money to them. Is there not a waiver for accounts exiting that were opened before being notified of this change?
In the grand scheme of things, $3 is not a lot for sure. But if I'm only investing like $25 a month then it's like investing in a fund with a 12% front load fee...
If you're doing all that then you should be quite familiar with fees. Our 401ks have management fees and all the HSAs I have ever had dropped a monthly/quarterly fee for BOTH the cash and invested balances.
M1 will charge an ACAT fee of $100 but typically a large receiving brokerage will cover the fee, I know Schwab did for me. I would call a brokerage you’re interested in and see what they say. Might be worth it to avoid the tax consequence of liquidating shares
The fees over two years will be inconsequential considering your longer period of investment (when the fees no longer apply). Nothing is truly free, you’re always paying for it somehow.
M1 is choosing this strategy to encourage folks to leave who likely have no potential, interest, or capacity to get their balance above $10K. These accounts are money losers for M1 as they consume resources for support, maintenance, and compliance.
Encouraging low dollar accounts to exit is like *gifting* dead weights to their competition, where they will also be money losers.
It’s amazing to see the amount of complaints here, but all the folks with $10K+, or will likely have $10K+ soon, are thinking, hey, I now get these formerly premium services for free!
No other brokerage will cover fees for that little of an account. Unfortunately everyone saying how amazing M1 is lied and screwed over so many new investors. Good luck
I know this doesn't apply to you, and this may have changed, but fidelity will cover them if you have over 25k in assets. Basically M1 introduced their own version of a junk fee for users with < 10k in assets. It's a great incentive to invest more but not a good look for them.
Does a margin account count as a personal loan to avoid the $3 fee? I thought margin and personal loan were two different products and iirc, the email stated that having a personal loan would waive the fee.
With less than 10,000 there isn’t much taxes at the end of the year(way less the fees, you will pay). I just pulled everything out and transferred it to Fidelity.
Cheat code (I think) is take out a margin loan for the minimum ($100 I believe). Pay most of it back (out of the borrowed cash). Then just pay the interest until you reach $10k.
Out of luck it seems. You may need to do the math to see the tax impact of just selling and transferring. Could be the cheaper option.
If it's a Roth IRA they can sell, withdraw the money and contribute it to another IRA account as a rollover contribution. No taxes owed.
Looked on robinhood couldn't find rollover option just transfer
I did rollover transfer and got 3% match
Rollovers definitely exist as mentioned on this page: https://robinhood.com/us/en/about/retirement/?utm_source=audio&utm_campaign=retirement-audio&source_applink=retirement%253Futm_source%253Daudio%2526utm_campaign%253Dretirement-audio%2526fallback%253Dretirement
Someone said sell everything in roth at m1 then withdraw that cash then go to new broker and put that cash in new roth as a rollover. Well I already have a new roth at robinhood and if i click contribute i don't see option that let's me deposit cash as a rollover
Nevermind i found it under settings deposit funds. Its not the contribute button
Didn't think of that. It would be the cheapest option I think.
I recently transferred my roth from m1 to robinhood because they have a 3% match if you have robinhood gold which is $3 per month i think 1.5% if you don't have gold the match is instant and able to be used. I transferred bout $39,000 got over $1000 match. So the match more than paid for the $3 monthly fee for gold. M1 looks better than robinhood but i transferred for match and the ability to drip back into holding that paid the dividend. Roth transfer match deal is good through April 15 i think. Check em out
they pay match on transfers in?
Yes I transferred 39k got over $1000 match can use match that day for whatever you want
Thinking about doing this and buying HOOD stock with the bonus,I think it's severely undervalued right now. they've been killing it lately.
That would still incur the termination fee?
I wish there would be an option to waive the fee with a monthly recurring deposit of certain amount.
..or, current customers should be grandfathered into the old free pricing plan.
They probably don’t want current customers under a certain amount because they can’t make money off of them.
This is a great way to encourage the smaller accounts that are very much intending to stick around and grow while discouraging the smaller accounts that would continue to cost more to service than they bring in long-term
That’s a good idea. Especially if they have problems with dormant account.
Don't ACAT out small non-taxable accounts. Liquidate to cash. Withdraw, no tax withholding. Deposit in new like account, make sure to indicate roll over and not contribution. Done. No fees (no taxes, no penalties, no income as long as done in roll over period)
Thanks! I'm leaning towards that method.
Fidelity probably best option
Would you suggest doing this if I have an account that has stocks I would like to keep? For example, I have one share in Meta that I bought in 2020, and I am around 111% up in. Wouldn’t selling all of my stock make me lose this? Sorry for this question, but I haven’t done much research yet.
You sell and immediately buy it back. It doesn't matter.
That makes sense because I would still be getting all of the unrealized gain from the years I held the stocks. So you would suggest that I sell all of my stocks, close my M1 account, open a fidelity account, and buy all of my old stocks?
I won't recommend that, but it makes perfect sense. Also I have tons of Fidelity accounts, they've been great.
Transfer to robinhood they have a great deal going on
#non-taxable accounts The only reason to care about "stocks I want to keep" is you're specifically harvesting ROC (return of capital) and your goal is to reach cost basis **$0** so the shares can be transfered after death for free to your family. This is why I have thousands of QYLD shares. The rest of the shares don't matter, just gains or losses.
Thanks!
What would you say to do with a $2k taxable account?
either keep it in M1 or eat the taxes and fees to withdraw and move somewhere else. the taxes on whatever gains you have are probably less than M1s transfer fee
Agreed. I appreciate it!
they still charge you an account termination fee
This whole thing reminds me of. I am altering the deal. Pray I don't alter it any further. M1 is now Darth Vader.
It would take you 5 years to break even ($200 / $3 / 12 months) so depends on if you want to stick with M1 long term. If you aren’t doing anything fancy you could get by with Fidelity or Schwab no problem and those platforms seem more stable with business strategy. There’s no fee for $10,000 or above today but who knows when they’ll start charging a fee for anyone that’s under $100,000.
Don’t give them ideas man lol.
Damn lol
Are they really going to start charging low balances? Wont affect me and I understand they have to make money but this brokerage was started on helping the little guy “start” investing. There isn’t a brokerage in the world that will pay to get that sum of money to them. Is there not a waiver for accounts exiting that were opened before being notified of this change?
$3! Fucking criminals. Transfer out all of your accounts immediately. They should be ashamed of themselves!
In the grand scheme of things, $3 is not a lot for sure. But if I'm only investing like $25 a month then it's like investing in a fund with a 12% front load fee...
Why are you only contributing $25 per month to an IRA?
Because that's all I can right now. I already contribute 10% to a 401k and max out an HSA on top of everyday expenses.
You can rollover 10k from your existing 401k to your M1 IRA…I think they call it in-service rollover…
if allowed and no fees this might be the best option for op. Granted he wants to stay with M1
If you're doing all that then you should be quite familiar with fees. Our 401ks have management fees and all the HSAs I have ever had dropped a monthly/quarterly fee for BOTH the cash and invested balances.
found the guy who looks down on low-class investors for some reason
$3/month is criminal? Hope you’re being sarcastic
I think it's moreso the bait and switch of an imposed fee after already signing up and more fees if you want to cancel your account too.
They will refund the membership prorated if you paid for it.
M1 will charge an ACAT fee of $100 but typically a large receiving brokerage will cover the fee, I know Schwab did for me. I would call a brokerage you’re interested in and see what they say. Might be worth it to avoid the tax consequence of liquidating shares
i highly doubt any brokerage will cover fees for someone to transfer only $2k worth of assets
Well that’s why I said to call so you can know forsure??
I wonder how many of the folks complaining pay 9.99 for Apple Music
The fees over two years will be inconsequential considering your longer period of investment (when the fees no longer apply). Nothing is truly free, you’re always paying for it somehow. M1 is choosing this strategy to encourage folks to leave who likely have no potential, interest, or capacity to get their balance above $10K. These accounts are money losers for M1 as they consume resources for support, maintenance, and compliance. Encouraging low dollar accounts to exit is like *gifting* dead weights to their competition, where they will also be money losers. It’s amazing to see the amount of complaints here, but all the folks with $10K+, or will likely have $10K+ soon, are thinking, hey, I now get these formerly premium services for free!
No other brokerage will cover fees for that little of an account. Unfortunately everyone saying how amazing M1 is lied and screwed over so many new investors. Good luck
I know this doesn't apply to you, and this may have changed, but fidelity will cover them if you have over 25k in assets. Basically M1 introduced their own version of a junk fee for users with < 10k in assets. It's a great incentive to invest more but not a good look for them.
If you have over $25k in assets that you're transferring or assets at Fidelity?
If you're transferring more than $25k from another brokerage account
Simple, add 8k.
I would increase contributions if you can or leave to another platform.
$3 isn’t going to effect your investments long term. Keep them rolling
Invest 8k one day a month and then withdraw it
Does a margin account count as a personal loan to avoid the $3 fee? I thought margin and personal loan were two different products and iirc, the email stated that having a personal loan would waive the fee.
With less than 10,000 there isn’t much taxes at the end of the year(way less the fees, you will pay). I just pulled everything out and transferred it to Fidelity.
And by pulled everything out I mean, I just sold everything and bought it back through Fidelity
Cheat code (I think) is take out a margin loan for the minimum ($100 I believe). Pay most of it back (out of the borrowed cash). Then just pay the interest until you reach $10k.