DaveF1006
Expert Alumni

Get your taxes done using TurboTax

It depends. Moving money into one investment account into another does not generate a taxable event. One exception is If your account that you transfer is a Traditional IRA and if you transfer it to a non-traditional IRA or another type of brokerage account, then the transfer is taxable.

 

Another possible exception is if your transfer is not a direct transfer. For an example, if you liquidate some the assets you hold at your current brokerage, receive a check, then walk across the street to open another brokerage account, you may have to pay capital gains taxes on the transfer because this is treated like a the sale of any securities in a taxable account (like an individual or joint trust account).

 

Do a direct transfer within the brokerage and this transfer will not be taxable unless you are transferring a non-traditional IRA.

 

 

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