How to Cancel Wealthfront Account: A Comprehensive Step-by-Step Guide

Closing a financial account can sometimes be a daunting task, especially when it comes to investment and retirement accounts. If you’re considering canceling your Wealthfront account, you’ve come to the right place. This comprehensive guide will walk you through the process of closing different types of Wealthfront accounts, including Cash Accounts, Investment Accounts, and IRAs. We’ll also cover important considerations, fees, and the transfer process to ensure you have all the information you need to make an informed decision.

Closing a Wealthfront Cash Account

If you’re looking to close your Wealthfront Cash Account, follow these steps:

1. Log into your account: Access your Wealthfront account through the website or mobile app.
2. Navigate to the Cash Account: From the home dashboard, select your Cash Account.
3. Access account management: Click on the “Manage” option in the top right corner.
4. Initiate the closure process: Scroll to the bottom of the page and select “Start account closure.”
5. Follow the prompts: Complete the closure process by following the on-screen instructions.

Important Considerations for Cash Account Closure

Before closing your Cash Account, keep the following points in mind:

• Pending transfers: Ensure all incoming and outgoing transfers are complete before initiating the closure.
• Money market funds: If you have funds in a money market, clear the allocation by selecting “Clear allocation” under the money market information card. This process may take 1-2 business days.
• Stock Investing Account: If you have a Stock Investing account linked to your Cash Account, you must close or empty it first. This involves selling all stocks and waiting for any residual dividends or interest to be paid out.
• Direct deposits and automatic payments: Update any direct deposit or bill pay settings to use a different account, as your Cash Account will no longer be available for these purposes once closed.

Closing Other Wealthfront Accounts

For Investment Accounts and IRAs, the process is slightly different:

1. Withdraw funds: Transfer or withdraw the entire account balance by selecting “Transfer Money” and then “Withdraw” to liquidate your account balance.
2. Close the account: After withdrawing all funds, look for an option to close or terminate the account in the account settings.

Additional Steps for IRA Accounts

Closing an IRA account requires special attention due to tax implications and regulatory requirements:

1. Consider tax implications: Understand that withdrawals from a Traditional IRA are subject to income tax and potentially a 10% penalty if you’re under 59 ½ years old.
2. Transfer option: Instead of withdrawing funds, you can transfer your IRA to another provider through a trustee-to-trustee transfer to avoid tax consequences.
3. Required Minimum Distributions (RMDs): If you’re over 70 ½ years old, ensure you’ve taken your RMD before closing the account to avoid penalties.
4. Documentation: Keep all tax documents and statements accessible through the “Documents” page of your Wealthfront account.

Fees and Transfers

When closing or transferring your Wealthfront account, it’s important to be aware of any associated fees:

• No closure fees: Wealthfront does not charge fees for closing Cash Accounts or Investment Accounts.
• Free ACH transfers: Transferring funds via ACH is free and typically completed within 1-2 business days.
• Wire transfer fees: While Wealthfront doesn’t charge for outgoing wire transfers, the receiving institution may charge a fee.
• ACATS transfers: If you’re transferring investments to another firm using the Automated Customer Account Transfer Service (ACATS), the process typically takes 3-7 business days but can sometimes extend up to 2-3 weeks.

ACATS Transfer Process

If you opt for an ACATS transfer, follow these steps:

1. Prepare documentation: Gather account statements and relevant information.
2. Open a new account: Ensure the new brokerage supports ACATS transfers.
3. Complete the Transfer Initiation Form (TIF): Obtain and fill out this form from your new brokerage.
4. Submit the form: Send the completed TIF to your new brokerage.
5. Monitor the transfer: Keep track of the progress and follow up on any issues.

Final Thoughts

Closing your Wealthfront account requires careful consideration and planning. Whether you’re closing a Cash Account, Investment Account, or IRA, it’s crucial to understand the process, potential tax implications, and any associated fees. By following this comprehensive guide, you’ll be well-equipped to navigate the closure process smoothly and efficiently.

Remember to keep all relevant documents for your records and consider seeking advice from a financial professional if you’re unsure about the tax implications of closing your accounts, especially when it comes to IRAs. With the right preparation and knowledge, you can confidently manage your financial accounts and make decisions that align with your long-term financial goals.