What to do when you get kicked out of your US brokerage account

Let’s face it, no one likes being kicked out the club or the popular group.?Whether it was the cool kids lunch table or the popular country club, no one is a fan of being excluded.?One area where it is starting to happen more and more is for US expats living overseas who are being kicked out of their brokerage accounts.?Many times, they are given only a couple of months’ notice, and this may lead to some sleepless nights.?Usually, the reason expats are kicked out of their brokerage account is because the brokerage firm or advisor does not want to deal with the extra compliance or costs that can come with working with people residing outside the US.?

Thankfully, this does not have to be a scary process, and we have been helping US expats with financial and planning items for fourteen years.

What to do if you get kicked out of your brokerage account

If you get kicked out of your US brokerage account, the thing to remember is that your advisor or broker will give you time to find another custodian. You just want to keep a few things in mind, so that you potentially don’t end up with some big tax bills.?The first would be if you have a retirement account such as an IRA, you want to find another custodian so that your current broker or advisor does not liquidate the funds and send you a check.?If this happens you have 60 days to get it into another IRA before it becomes taxable.?For example, if you had a $500,000 IRA that was liquidated, and you could not transfer it over in 60 days, you would be taxed on the $500,000 at your current tax rate.

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Disclaimer

Nardis Advisors LLC (“Nardis”) is a Registered Investment?Advisory Firm regulated by the U.S Securities and Exchange Commission in accordance?and compliance with applicable securities laws and regulations.?Registration does not imply a certain level of skill or training. Nardis?does not render or offer to render personalized investment advice through?this medium. The information provided herein is for informational purposes?only and does not constitute financial, investment or legal advice.?Investment advice can only be rendered after delivery of the Firm’s?disclosure statement (Form ADV Part 2) and execution of an investment?advisory agreement between the client and Nardis.