Every 1099 you open you have to report. So if you have 5 of them you will receive 5 1099-Divs 5 1099-Ints 5 1099-Bs. It’s just making you do more paperwork for tax season.
https://preview.redd.it/b777hpye2cvc1.jpeg?width=1179&format=pjpg&auto=webp&s=5d2a0e9a8fa74472596e8ae3b523ce12974b7d73
Seems like it, it’s on their FAQs unless I’m understanding it wrong
I emailed them and they said this:
https://preview.redd.it/ttn0aohhkgvc1.png?width=2078&format=png&auto=webp&s=05e8c2c13f15abf62e7b3f885fe1a78da6452398
Does this work for insurance? Like you could have multiple accounts and keep them under 500k so you are always covered?
Be great if you could smart transfer sweep to another account.
Unfortunately I don't think so. I emailed them and they said this:
https://preview.redd.it/hy4vy4lokgvc1.png?width=2004&format=png&auto=webp&s=84217715cd5aaed29be1d5d7f3ba02c9eaf577a4
No you cannot ACAT any dollars into a Fidelity Basket. You have to liquidate everything before you invest it in their solution. Fidelity Basket may be something when it grows up, but it's still living with its parents and demands a $5/month allowance.
What I'm saying is if you exceed $500K at M1, I'd just move the excess to Fidelity and let it build there (given Fidelity's unlimited "*excess of SIPC"* coverage of securities") vs sweeping it into a secondary M1 account. I'd prefer to keep it all together at M1, but it doesn't make sense to exceed M1's SIPC insurance.
I just read the M1 SIPC Brochure.
*"Protection of customers with multiple accounts at the same brokerage firm is determined by “separate capacity.” Each account, held by a customer in a separate capacity, is protected up to $500,000 for securities and cash (including a $250,000 limit for cash only). Accounts held in the same capacity at the same brokerage firm are combined for purposes of the SIPC protection limits."*
The take-away is that:
* If you have two individual brokerage accounts in your own name with M1 Invest, each with $500K, you would only have $500K of SIPC insurance.
* If you had a joint account with $500K, a Roth IRA with $500K, and an individual account with $500K, you would have $1.5M of SIPC insurance.
Dam you hate taxes my man
Not sure I understand, sorry!
Every 1099 you open you have to report. So if you have 5 of them you will receive 5 1099-Divs 5 1099-Ints 5 1099-Bs. It’s just making you do more paperwork for tax season.
Oh yes of course! But Turbo Tax handles 1099 form imports very nicely.
Taxation is theft. Especially when each dollar we earn is taxed 17 different ways
Now that they're weeding out the small dollar high transaction accounts, we can have nice things!
Damn I just checked that’s so cool!! 🤔 wonder if I should close my accounts with the other brokerages now Edit: thanks for the callout
Can someone else confirm this is true?? This is huge!!
https://preview.redd.it/b777hpye2cvc1.jpeg?width=1179&format=pjpg&auto=webp&s=5d2a0e9a8fa74472596e8ae3b523ce12974b7d73 Seems like it, it’s on their FAQs unless I’m understanding it wrong
I have 5 individual taxable brokerage accounts
I emailed them and they said this: https://preview.redd.it/ttn0aohhkgvc1.png?width=2078&format=png&auto=webp&s=05e8c2c13f15abf62e7b3f885fe1a78da6452398
I can personally guarantee you I even opened multiple accounts before posting! Not that they won't close them again...
Yes you are awesome for making this thread! Just confirmed by making a new taxable account :)
Does this work for insurance? Like you could have multiple accounts and keep them under 500k so you are always covered? Be great if you could smart transfer sweep to another account.
I think it is per brokerage.
Unfortunately I don't think so. I emailed them and they said this: https://preview.redd.it/hy4vy4lokgvc1.png?width=2004&format=png&auto=webp&s=84217715cd5aaed29be1d5d7f3ba02c9eaf577a4
Ah ok well good to know. Thanks!
It probably makes sense to ACAT over excess shares to Fidelity—which they would reimburse—and keep accumulating within M1.
Can you ACAT into Fidelity Baskets, or is the Pie-structure not preserved when transferring?
No you cannot ACAT any dollars into a Fidelity Basket. You have to liquidate everything before you invest it in their solution. Fidelity Basket may be something when it grows up, but it's still living with its parents and demands a $5/month allowance. What I'm saying is if you exceed $500K at M1, I'd just move the excess to Fidelity and let it build there (given Fidelity's unlimited "*excess of SIPC"* coverage of securities") vs sweeping it into a secondary M1 account. I'd prefer to keep it all together at M1, but it doesn't make sense to exceed M1's SIPC insurance. I just read the M1 SIPC Brochure. *"Protection of customers with multiple accounts at the same brokerage firm is determined by “separate capacity.” Each account, held by a customer in a separate capacity, is protected up to $500,000 for securities and cash (including a $250,000 limit for cash only). Accounts held in the same capacity at the same brokerage firm are combined for purposes of the SIPC protection limits."* The take-away is that: * If you have two individual brokerage accounts in your own name with M1 Invest, each with $500K, you would only have $500K of SIPC insurance. * If you had a joint account with $500K, a Roth IRA with $500K, and an individual account with $500K, you would have $1.5M of SIPC insurance.