Edward Jones IRA Rollover: How to Transfer Out

Every year, thousands of Edward Jones clients decide to move their IRA to Fidelity, Schwab, or Vanguard. The reason is almost always fees: Edward Jones's Advisory Solutions program charges a tiered advisory fee starting at 1.35% on the first $250,000 of assets — on top of the underlying fund expenses. At a $500,000 IRA balance, that's $6,750+ per year in advisory fees alone, plus an additional 0.28–0.50% in fund costs depending on your holdings.¹

The good news: transferring an IRA away from Edward Jones is straightforward, triggers zero taxes when done correctly, and is not subject to the IRS once-per-year rollover rule. The process takes 2–4 weeks total and Edward Jones cannot prevent you from initiating it.

This guide explains the fee math, the one wrinkle that slows most transfers (proprietary Bridge Builder funds), and the exact step-by-step process.

What you're actually paying at Edward Jones

Edward Jones offers two main account structures. Understanding which one you have affects your math:

For comparison: Fidelity, Schwab, and Vanguard charge 0% advisory fee on self-directed IRAs and offer broad market index funds at 0.00–0.03% expense ratios. The fee gap between an Edward Jones Advisory Solutions IRA and a self-directed IRA at a discount custodian is typically 1.30–1.65% per year.

Additionally, Edward Jones charges an annual IRA maintenance fee of $40 for your first IRA and $20 for each additional IRA. This fee is waived for accounts with balances above $250,000.³ There is also an account closure fee of $95–$125 when you transfer or close your account.²

Fee-drag calculator: the 20-year cost of staying

When leaving Edward Jones makes sense

Not every Edward Jones client should transfer out. Here is the honest framework:

Leaving makes sense when:

• You're comfortable managing your own asset allocation and rebalancing annually
• Your balance is large enough that the annual fee gap ($6,700+ per year on $500K) exceeds the planning value you're receiving
• You're not actively using the financial planning services (life insurance, annuity review, estate plan coordination) your advisor provides
• You're approaching retirement and want to begin Roth conversion planning — the AUM fee structure creates an inherent conflict with recommending Roth conversions that reduce the balance (and the advisor's annual fee)⁴

Staying may make sense when:

• Your advisor provides comprehensive financial planning — tax return review, estate planning coordination, insurance analysis — that justifies the cost
• You're in a complex situation (closely-held business, NUA stock, pension coordination) where ongoing guidance has documented value
• Your balance is small enough that the absolute fee difference is modest ($400/year on $30K isn't a compelling reason to upend the relationship)

The Bridge Builder fund problem

Edward Jones's Advisory Solutions accounts typically hold proprietary Bridge Builder mutual funds. These funds are managed by an Edward Jones subsidiary and are only available to Edward Jones clients — they cannot be transferred in-kind to Fidelity, Schwab, or Vanguard.⁵

When you initiate a transfer, Edward Jones handles this in two stages:

1. In-kind transfer (days 1–10): Any non-proprietary holdings (ETFs, third-party mutual funds, individual stocks, bonds) transfer as securities to your new custodian. You stay invested during this portion.
2. Residual cash transfer (days 11–18): Bridge Builder fund shares are liquidated at Edward Jones and the cash proceeds are sent to your new custodian in a follow-up wire transfer. You are out of the market on these funds for ~5–10 business days during liquidation and transfer.

The Bridge Builder liquidation is a non-event for tax purposes — it occurs inside your IRA, so there is no capital gains tax. The main downside is a brief period of cash drag while the proceeds are in transit.

Before initiating the transfer, download or screenshot your current cost basis on all holdings from your Edward Jones account. The cost basis should transfer with the account, but having your own record prevents disputes if anything is missing on arrival.

Transfer vs. rollover: the tax distinction

When people say "IRA rollover" they often mean two different things. For your Edward Jones transfer, the distinction matters:

Always use the direct transfer method. The 60-day rollover path exists but offers no advantage over a direct transfer and creates unnecessary risk.

Step-by-step: how to transfer your Edward Jones IRA

1. Open the receiving IRA account. Open a Traditional IRA (or Roth IRA if your Edward Jones account is a Roth) at Fidelity, Schwab, or Vanguard. You can do this online in 10–15 minutes. You do not need to fund it with new money — just open it so it exists.

2. Gather your Edward Jones account information. Have your Edward Jones IRA account number, registered name, and account type (Traditional vs. Roth) ready. Also note your Edward Jones branch information — it may appear on the transfer request form.

3. Save your cost basis records. Log into your Edward Jones account and download or screenshot cost basis information for all holdings. This data should transfer automatically but having a backup prevents disputes.

4. Initiate the transfer at the receiving custodian. Log into your new Fidelity/Schwab/Vanguard account and find the "Transfer assets" or "Transfer IRA" section. Select "Transfer from another institution" and follow the prompts. You'll specify: Edward Jones as the transferring firm, your EJ account number, and whether you want a full or partial transfer. Submit electronically — the receiving custodian sends the request to Edward Jones via ACAT.

5. Do not contact Edward Jones to initiate. The receiving custodian initiates the ACAT request electronically. Calling Edward Jones to "start the transfer" typically routes you to your advisor's retention conversation. Let the ACAT process run — Edward Jones is legally required to process it within FINRA's timeline.

6. Watch for an Edward Jones confirmation call or letter. For large transfers, Edward Jones may attempt to verify the request is legitimate. This is standard fraud prevention. Confirm the transfer is authorized; do not be persuaded to cancel it during a retention pitch.

7. Expect two transfer credits at the receiving custodian. If you hold Bridge Builder funds, you'll first see the in-kind transfer of other holdings arrive, then a cash credit for the liquidated Bridge Builder proceeds 5–10 business days later. Both credits are tax-free and complete the transfer.

8. Pay the transfer fee and close the Edward Jones account. Edward Jones charges approximately $95–$125 to close an IRA account.² This is automatically deducted from the transfer or billed to your closing account. Confirm the account is fully closed and request a zero-balance confirmation letter if you want documentation.

Timeline expectations

If you are over age 73 (born 1951–1959) or 75 (born 1960+), you must take your Required Minimum Distribution from the Edward Jones IRA before or during the transfer year. RMDs cannot be transferred — they must be distributed to you first.⁷ See IRA rollover and RMD rules for the sequencing.

Where to transfer: choosing the receiving custodian

For most people transferring from Edward Jones, Fidelity, Schwab, and Vanguard are the three main options. Each has meaningful differences:

• Fidelity — Best for low fund costs (FZROX, FZILX: 0.00% ER). But Fidelity ZERO funds cannot be transferred in-kind to another broker in the future — you'd have to sell and rebuy. If there's any chance you'll move custodians again, this matters.
• Schwab — Strong in-person branch network, competitive index funds (SWTSX: 0.03%), and excellent phone support for rollovers. Good all-around choice.
• Vanguard — Best fund portability (VTI: 0.03%, transferable anywhere). Interface is more dated than Fidelity/Schwab; better for buy-and-hold investors who won't need sophisticated trading tools.

For a deeper comparison including bankruptcy protection details, see Best Rollover IRA Account 2026: Fidelity vs Vanguard vs Schwab.

Tax rules: what happens to your IRA during the transfer

• No taxable event. A direct trustee-to-trustee IRA transfer creates no income tax obligation. Your funds stay in tax-deferred status throughout.
• No Form 1099-R. Because no distribution is made to you, Edward Jones issues no Form 1099-R. Edward Jones will file a Form 5498 with the IRS showing the account was transferred. Your new custodian files a Form 5498 showing the receiving balance.
• No once-per-year limit. IRS Ann. 2014-15 (the post-Bobrow rule) applies only to indirect IRA-to-IRA rollovers — not to direct transfers. You can make unlimited direct transfers between IRA custodians. See IRA transfer vs. rollover for the full distinction.
• Roth IRA cost basis transfers intact. If you're moving a Roth IRA, your 5-year account clock (established by the first tax year you contributed to any Roth IRA) does not reset. The clock runs from the first contribution to any Roth IRA, regardless of custodian changes.
• Non-deductible IRA basis transfers. If your Traditional IRA contains after-tax (non-deductible) contributions with a Form 8606 basis, that basis transfers with the account. The IRS tracks it via your prior Form 8606 filings — not via the custodian. Confirm your new custodian's records match your Form 8606 history.

After the transfer: first steps at the new custodian

1. Verify cost basis data arrived correctly. Check that all positions show the correct cost basis. If Bridge Builder funds arrived as cash (common), the liquidation proceeds are simply your new cash position with no basis issue — Bridge Builder liquidations inside the IRA are not taxable events.
2. Reinvest the cash. Bridge Builder proceeds and any other cash balances should be invested within a few days. Most discount custodians offer an "auto-invest" option or money market fund to park cash while you decide on allocation.
3. Update beneficiary designations. Your Edward Jones IRA beneficiary designations do not automatically carry over to the new custodian. Log in, find the beneficiary section, and re-enter your designations. See IRA beneficiary designations after rollover — this is the most commonly skipped step.
4. Consider Roth conversion planning. With the fee drag eliminated, this is a natural inflection point to review whether Roth conversions make sense given your current income, projected RMDs, and Medicare IRMAA exposure. See Roth conversion after rollover.

When to consult a fee-only advisor before transferring

For straightforward IRA transfers — 100% pre-tax IRA, no NUA employer stock, no outstanding loans, no active Roth conversion strategy — a direct transfer to Fidelity/Schwab/Vanguard is uncomplicated and you can do it yourself.

The transfer becomes more complex in these situations:

• You have employer stock with NUA potential. NUA strategy must be executed at the plan level (401k/ESOP distribution), not from an IRA. If your Edward Jones account holds employer stock that was rolled to an IRA from a 401k, the NUA opportunity may already be gone — but confirm before acting. See NUA employer stock guide.
• You're planning a reverse rollover. If you want to move IRA funds back into a current employer 401k (to clear the pro-rata rule for backdoor Roth, or to restore Rule of 55 access), do that planning before you transfer to a self-directed IRA at Fidelity — not after. See reverse IRA rollover guide.
• You have significant Roth conversion runway. If you're 60–73 with a large pre-tax IRA and several years before RMDs, the transfer is an opportunity to structure a multi-year Roth conversion strategy. A fee-only advisor can model the bracket-filling approach, IRMAA cliff management, and beneficiary considerations that make the difference of $100,000+ in lifetime after-tax outcomes.
• The account contains non-deductible (Form 8606) basis. Make sure you have all prior Form 8606 filings accessible. Your new custodian does not track IRA basis — that's your responsibility via Form 8606. See non-deductible IRA guide.