How to submit an internal transfer (journal) online

How to submit an internal transfer (journal) online

Internal transfers move funds between Schwab accounts. Once processed, the funds from the transfer are immediately available in the receiving account. You can use the Move Money tool to submit a one-time or recurring internal cash or one-time position transfer for eligible registration types, submit up to 2,000 one-time internal cash transfers across multiple accounts using the Move Money import transactions tool. 

While first-party money movements where your firm has WPFA authority shouldn’t require client authorization, other types of transfers do, and the best, safest, fastest option for obtaining your clients’ approval is eAuthorization.

All accounts
  • Firm name and master account number
  • The following levels of account authority are valid:  
    • Withdrawal power financial advisor (WPFA)
    • Limited power of attorney for financial advisor (LPFA) Tooltip
    • Non-discretionary financial advisor (NDFA) Tooltip  
  • Schwab account number from which funds or positions will be withdrawn and to which they will be deposited
  • Update Move Money access security function
  • View Move Money security function
In addition to the above requirements, additional tools are required for specific transaction types: 
Import Transactions for internal transfers (journals)Because your upload must be compatible with Schwab’s requirements—including specific column headers—we recommend you download the CSV file template for journals, available on the Import Transactions page.
Internal position transfer Request Journal Positions access Tooltip /Request Internal Position Transfers access security function

Cash Transfers

For step-by-step instructions to set up internal transfers, refer to this guide. If you’re using the Legacy Move Money tool, click legacy instructions for information.

Position Transfers

For internal position transfers, you can designate specific lots or select a cost basis method to move positions between Schwab accounts. 

If you’re using the Legacy Move Money tool, click legacy instructions for information.

  1. If the user has the correct security function for Request Internal Position Transfer, they can see and request positions to be transferred. To start, click Create Transaction tab, then select transaction type as internal transfer.
  2. Click No checkbox for standing authorizations. Internal positions cannot leverage standing authorizations.
  3. Click One-time checkbox in the Frequency section.
  4. Click either Positions or Positions and Cash checkbox for transfer type.
  5. Enter the destination account number that will receive the positions.
  6. When you choose a cost basis method, Schwab will process the lots in the order they are selected such as FIFO or LIFO. You will be asked to enter quantity at position level for each position.
  7. Click the > icon to view different lots within positions.
  8. Specify share quantity for each position.
  9. Click the checkbox to select all shares in a position.
  10. To choose specific cost basis lots using the new functionality, click Select lots manually checkbox for the cost basis method. This will cause the table to expand and show all available lots.
  11. When choosing lots manually, you will see a text box next to each lot, and the total shares to move will auto-calculate at the position level.
  12. Note the disclaimer, which reminds you that the displayed values, may change due to market shifts and security availability during processing.
  13. Click Continue button on the Create Transaction page to review positions/lots selected for transfer.
  14. Select a user to send eAuthorization request for transaction approval. Note that users with Awaiting Alliance setup status can eAuthorize, but will be taken through the Schwab Alliance setup process before approving.
  15. Click the box next to Opt out of eAuthorization if you do not want to send the transfer to your client via eAuthorization, then click Submit. A prefilled one-time authorization form for client signature will pop up automatically to upload to DocuSign or Service Request for processing.
  16. Use the Export link to download the position/ lot details and save them as an Excel file for future reference.
  17. Track the transaction status using the View status link on the Account Transactions table.

Once you have submitted your internal transfer request:

  • If you’d like, you can download a copy of the confirmation page for your records.
  • Internal transfer requests received before 2:00 p.m. ET and in good order will be processed on a best-efforts basis.
  • Processing time may vary if approval or authorization is required.
  • If you need to modify an existing internal transfer, return to the Create Transaction tab in Move Money for the selected account. The Transactions Table on the account lists all recent transactions. You can click to edit or cancel your transaction if it has not been processed.

Forms can be accessed by navigating to the Account Management tab and the Forms Library.

Form: Check and Internal Transfer (Journal) Request Form
Form: Limited Power of Attorney (Investment Advisor LPOA)
Form: Tax Withholding Election Form for Individual Retirement Accounts (IRA TWE)
Form: Withdrawal Power and Trading Authorization Addendum to Limited Power of Attorney (LPOA)
Step-by-step guide for Legacy Move Money design: Moving money on Schwab Advisor Center

Why can I see the account information for the receiving account for some of the internal transfer requests and not for others?
The account information, name, and address for the receiving account will display only if your firm is associated with the receiving account.

Can I use a standing authorization to transfer positions from one account to another?
No, Schwab does not allow standing authorizations to be established for securities transfers.

Who within my firm should be given Update Move Money access?
Only employees authorized to make withdrawal requests on behalf of your firm.

Why can't I initiate a request in the Move Money tool, even though I have all of the necessary security functions?
You need authority on the account (WPFA, NDFA, or LPFA) to enter one-time and recurring requests. Schwab Advisor Center® login users also need to set up by their firm security administrator with Move Money data access for that account.

Can I use the Move Money tool to designate specific lots for an internal position transfer?
Yes, choose the select lots manually radio button to move individual lots.

What type of internal position transfers are supported in Move Money?
One-time first party and third-party position transfers are allowed. Standing authorizations cannot be used for internal position transfers. Recurring position transfers cannot be set up. 

Can I move fractional share quantity for equity positions?
Yes, you can transfer positions (up to 3 decimal places) if the shares held for a position has a preexisting fractional share quantity. You cannot transfer fractional shares if the shares held for a position is a whole number.

Can I move fractional share quantity for lots?
Yes, you can split a lot into a fractional value (up to 6 decimal places). If the shares held for a position is a whole number, the lots must add up to a whole number. You could transfer fractional share quantity for lots if the shares held for a position has a fractional quantity. 

Which account registrations are not eligible for internal position transfers?
Refer to Registration types not supported for Move Money. You cannot transfer positions from the following account registration types: any type of charity account, Donor-AdvisedFund Accounts (DAF).

Can I future date an internal position transfer?
No, internal position transfers cannot be future dated.

If I select a cost basis method that differs from the method set to the account, will that change the default cost basis settings for the account? 
No, the method selected in the move money flow will only apply to the transaction.

Is the lot selection feature offered in Schwab Charitable or IIP (Intelligent Investment Portfolio)?
No, the lot selection feature was launched for Move Money, but you can use Move Money to transfer securities to Schwab Charitable and IIP accounts.

Can I use DocuSign to complete the pre-filled PDF form, or does it need physical signatures?
DocuSign is eligible for any pre-filled PDF that is generated from the Move Money tab.

Can I move positions to non-custodial Schwab accounts?
The lot selection feature is built specifically for internal position transfers (accounts held at Schwab). Transfers to other custodians would still use standard protocols for transfer. 

When will internal position transfers require client authorization? 
Authorization will be required for third-party transactions and first-party transactions where the advisor has LPFA orNDFA authority. First-party internal position transfers submitted using WPFA authority do not require client authorization.

Can I transfer positions into Schwab Charitable using Create Transaction flow versus using the Schwab Charitable Contribution form?
Yes, positions can be transferred to Schwab Charitable accounts. However, SAC Move Money cannot be used to make Schwab Charitable™ donations from an IRA. To learn more about how to contribute to a Schwab Charitable™ account, see How to use a Schwab Charitable™ donor-advised fund account.  

Will Schwab check minimum requirement quantity requirements for moving bonds and mutual funds?
Yes, bonds and mutual funds can only be moved in multiples of minimum quantity requirements. The system will throw an error – ‘Enter a multiple of XXXX (minimum of 5000)’ if minimum quantity requirement is not met. For example: ‘Enter a multiple of 5000’ for mutual funds.

Do clients need to pay taxes on positions transferred from an IRA account? 
Yes, taxes will be deducted based on tax withholding elections for transferring positions out of an IRA account. Clients will not pay taxes if positions are transferred between their identically registered IRA accounts when the distribution reason for combine accounts is used.

When shares are moved, is the cost basis updated immediately in the system or will it take a few days for the cost basis team to update?
If the internal position transfer is requested and approved on the day of submission, the cost will be reflected in the receiving account next business day. 

How can I view lots selected for transfer? 
If you are moving specific lots, you can use the export link on the positions table displayed on the Confirmation page to download an excel file with position and lot details. If you choose an alternative cost basis method such as First In First Out (FIFO), Highest Cost Lot, etc., the system will auto-pick the lots based on the cost basis method selected.

Can I move positions from Non-IRA to an IRA account?
Yes, you can move positions from non-taxable account into an IRA account using a rollover option. Please be advised that since this is a position(s) transfer to an IRA account, this will constitute a 60-day rollover. To complete a valid 60-day rollover, IRS rules indicate that the same property must be returned as was received from the distribution. If property (such as stock) is distributed from one IRA, that same property (stock and share quantity) must be rolled back into an IRA, regardless of current market value. If cash is distributed, cash must be returned (any tax withholding intended to be returned must be in the form of cash since cash was withheld for taxes).

eAuthorization video
How to create a standing authorization
How to use the Move Money Import Transactions tool
Introduction to eAuthorization
Move Money step-by-step guide
Tax withholding election (TWE) FAQs