Managed Account Platform Section

How to request tax harvesting for managed accounts 

How to request tax harvesting for managed accounts

The Schwab Advisor Services™ managed account platform allows for tax harvesting- the practice of selling securities to harvest the capital gain or loss for tax purposes.

You can request tax harvesting for Managed Account Select® ( Select Tooltip ) and Managed Account Access® ( Access Tooltip ) clients using DocuSign® or paper forms. Forms submitted using DocuSign can only be signed by your clients.

To request tax harvesting for Managed Account Marketplace® ( Marketplace Tooltip ) accounts, contact the designated money manager to learn more about your client's tax-harvesting options.

To request tax harvesting on a Select or Access managed account, you will need:

Required

All accounts
  • A completed Managed Account Select/Access Gain/Loss Harvest form
  • Your firm name, contact information, and managed account master
  • The account holder's name, managed account number, investment strategies, and, if applicable, organization name
  • For the securities (being sold): ticker symbols, numbers of shares, and purchase dates
  • Adobe® Reader® or Adobe Acrobat® 7.0 or higher (download the latest version on the Adobe website)


 

Conditional

All accounts

If using DocuSign to submit forms:

  • For existing Charles Schwab & Co., Inc. ("Schwab") clients, a complete Schwab Advisor Center® profile with the account holder's current email address and mobile phone number
  • For new-to Schwab clients, an email address and mobile phone number
  • All clients must use either Alliance Authentication (only available when starting the envelope within Schwab Advisor Center), or, both text message (SMS) authentication and Knowledge Based Authentication (KBA) for DocuSign (available in both Schwab Advisor Center and the DocuSign Console)

This process may be used to request tax harvesting on Select Tooltip  or  Access Tooltip accounts using DocuSign.* All forms must be sent by the money manager's posted deadline for year-end processing. Forms submitted using DocuSign can only be signed by your clients.

  1. Read the Tax Harvesting Policy Disclosures, and then review the Managed Account Select Tax Harvest tab and the Managed Account Access Tax Harvest tab to identify information such as tax harvest deadlines, turnaround times, and tax harvest minimum amounts.
  2. Go to the Forms library on Schwab Advisor Center and select the Managed Account Select/Access Gain/Loss Harvest Form.
    1. Go back to the DocuSign section on the Account Management page.
    2. Select Go to the DocuSign console and use the START drop-down menu to choose Send an Envelope.
    3. Click Upload to pull in the blank form previously saved to your computer.  
  3. In Add Recipients to the Envelope, select either an existing Schwab client or enter the name and email address of a new Schwab client. Repeat until all necessary signers are added. The order in which you add signers will determine the signing sequence. Once complete, click NEXT at the bottom right of the screen.
  4. Complete all necessary fields on the form and enter the following selling instructions:
    • In section 2, complete one of the following options:
      • Option A, to produce taxable gains or losses
      • Option B, to harvest tax gains or losses
    • In section 3, enter the desired proceeds instructions.
    • In section 4, fill out the special instructions Tooltip (if applicable).

Locate the pages requiring any action by your clients. If multiple signers are required on the form, select the appropriate signer in the drop-down list on the left side of the page and then drag and drop the appropriate tag Tooltip to the desired location on the form. This process flags these fields as required so that incomplete forms cannot be submitted. Follow this process for each field the client must sign or complete. Review the forms and send them to your clients.

During the client signing process, you can check the status of your envelope from the Sent folder in the DocuSign console. 

After all clients have signed, the completed envelope will show in the Inbox folder in the DocuSign Console.

*A money manager's tax methodology may be different from what appears on the Cost Basis tab if you and your client have chosen your own tax methodology.

This process may be used to request capital gain or loss harvesting on  Select Tooltip or  Access Tooltip accounts using paper forms.* All forms must be sent by the money manager's posted deadline for year-end processing.

  1. Read the Tax Harvesting Policy Disclosures, and then review the Managed Account Select Tax Harvest tab and the Managed Account Access Tax Harvest tab to identify information such as tax harvest deadlines, turnaround times, and tax harvest minimum amounts.
  2. Go to the Forms library on Schwab Advisor Center and select the Managed Account Select/Access Gain/Loss Harvest Form. Click Select, and then select Open PDF.
  3. Complete all necessary fields on the form and enter the following selling instructions:
    • In section 2, complete one of the following options:
      • Option A to produce taxable gains or losses
      • Option B to harvest tax gains or losses
    • In section 3, enter the desired proceeds instructions.
    • In section 4, fill out the special instructions Tooltip (if applicable).
  4. Print the form(s), and obtain signatures from each account holder. If your firm has been granted advisor authorizations Tooltip , an authorized agent of your firm may sign any relevant forms on behalf of your clients. If a distribution is being requested, you must also have disbursement authority on the account.
  5. Send the signed forms to Managed Account Operations via a Schwab Advisor Center service request, fax, or mail.

    East CoastWest Coast
    Fax: 877-828-1176Fax: 877-815-3479
    Regular mail:
    Charles Schwab & Co., Inc.
    Attn: Managed Account Operations
    P.O. Box 2380
    Omaha, NE 68103
    Regular mail:
    Charles Schwab & Co., Inc.
    Attn: Managed Account Operations
    P.O. Box 982603
    El Paso, TX 79998-2603
    Overnight mail:
    Charles Schwab & Co., Inc.
    Attn: Managed Account Operations 
    200 S 108th Ave
    Omaha, NE 68154
    Overnight mail:
    Charles Schwab & Co., Inc.
    Attn: Managed Account Operations
    1945 Northwestern Drive
    El Paso, TX 79912-1108

*A money manager's tax methodology may be different from what appears on the Cost Basis tab if you and your client have chosen your own tax methodology.

Once you have submitted your tax harvesting request:

  • Your client's money manager will complete all requests submitted by the deadline within the turnaround time listed on the Managed Account Select Tax Harvest and the Managed Account Access Tax Harvest tabs. All trades submitted after the deadline are processed on a reasonable-effort basis.
  • Once the sale is complete, your client's money manager may resume normal trading.
  • At the end of the 30-day wash sale holding period, your client's money manager may rebalance the account, resulting in additional gains or losses.
  • The account holder should consult with their tax advisor if they have any questions about tax implications.
  • If the forms were submitted using DocuSign, see How to use DocuSign.
  • If you have questions about tax harvesting for managed accounts, contact Managed Account Operations at 877-595-6345 or via a Schwab Advisor Center service request.
To select a form, go to the Forms library on Schwab Advisor Center.
Form: Managed Account Select/Access Gain/Loss Harvest Form
Resource: Managed Account Access tax harvesting disclosures
Resource: Managed Account Select Tax Harvest tab
Resource: Managed Account Access Tax Harvest tab

How to use DocuSign®
Introduction to managed accounts
Introduction to the managed accounts communications library

The Schwab Center for Financial Research ("SCFR") is a division of Charles Schwab & Co., Inc. ("Schwab") that evaluates money managers (MMs) in Schwab's Managed Account Select ("Select") program. The Select program is sponsored by Schwab. Schwab does not provide advice or recommendations regarding managed account strategies or MMs to investment advisors or their clients.

Schwab does not provide  legal, regulatory, tax or compliance advice. Consult professionals in these fields to address your specific circumstances.

DocuSign and the DocuSign logo are trademarks or registered trademarks of DocuSign, Inc. in the United States and/or other countries.

Adobe Reader and Adobe Acrobat are registered trademarks or trademarks of Adobe in the United States and/or other countries.

Please read the Schwab Managed Account Services™ Disclosure Package for important information and disclosures regarding the Managed Account Select® ("Select") and Managed Account Access® ("Access") programs. In addition, please read the participating money manager's ("MM's") disclosure brochure, including any supplements for important information and disclosures. Investments in managed accounts should be considered in view of a larger, more diversified investment portfolio. Services may vary, depending on which MM you choose, and are subject to an MM's acceptance of the account.

The Select and Access programs are sponsored by Charles Schwab & Co., Inc. ("Schwab"). The MMs in Select are not affiliated with Schwab. The Schwab Center for Financial Research ("SCFR") is a division of Schwab. In Select, SCFR conducts an operational evaluation of MMs, monitors the MMs performance periodically, and provides research. In Access, SCFR conducts operational evaluations of unaffiliated MMs. Schwab does not provide advice or recommendations regarding managed accounts, MMs, or securities to investment advisors or their clients. Independent investment advisors are not owned by, affiliated with, or supervised by Schwab.

The Managed Account Marketplace® ("Marketplace") platform is not a program sponsored by Schwab. Marketplace is an open architecture platform that gives investment advisors and their clients' access to separate account managers and turnkey asset management providers (TAMPs). Participating MMs and TAMPs need to establish a contract and have system compatibility with Schwab in order to be in Marketplace. The MMs, TAMPs, and their investment strategies available in Marketplace are not evaluated by Schwab.

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