The basic steps to close a Vanguard account

You can close a Vanguard account by calling Vanguard directly, visiting a local office if one is near you, or using their online account tools. Vanguard does not charge a fee to close an account. Before you close, you will need to decide what to do with any money still in the account — you can transfer it to another bank, have it sent to you by check, or move it to a different Vanguard account you are keeping open.

The process takes a few days to a few weeks depending on the type of account and whether you have investments that need to be sold first. If you have retirement accounts like an IRA or 401(k), closing works differently than closing a regular investment account, so the steps below cover both.

Key Takeaways

  • Call Vanguard at 1-800-997-2329 to start closing your account, or visit a Vanguard office in person if one is nearby.
  • You must move or withdraw all money from the account before it can close — Vanguard will not close an account with a balance.
  • If you own mutual funds or stocks, Vanguard may need to sell them first, which can take several business days.
  • Retirement accounts like IRAs have special rules about moving money, so confirm the withdrawal method with Vanguard before you start.
  • Keep records of the closure confirmation and any tax documents Vanguard sends you, especially for retirement accounts.

Gather what you need before calling

Have your account number ready when you contact Vanguard. You can find it on your account statements, on the Vanguard website after you log in, or on any mail Vanguard has sent you. You will also need to verify your identity, so have a government-issued ID nearby.

Before you call, decide where the money will go. Your options are: transfer it to another bank account you own, have Vanguard mail you a check, or move it to a different Vanguard account. If you are moving money to another bank, have that bank's routing number and your account number there ready. This speeds up the process and reduces the chance of errors.

Call Vanguard or visit in person

Phone Vanguard at 1-800-997-2329. Tell them you want to close your account and explain where you want the money to go. They will walk you through the steps and answer questions about your specific situation. The call usually takes 15 to 30 minutes.

If you prefer to close your account in person, Vanguard has offices in most major cities. You can find the nearest one on their website. Bring your ID and account number. An in-person closure can sometimes be faster because the representative can handle the paperwork right away, though the actual transfer of money still takes a few business days.

What happens to investments you own

If your Vanguard account holds mutual funds, stocks, or other investments, Vanguard must sell them before they can send you the money. This is called liquidating your positions. The sale happens at the market price on the day Vanguard processes the order, which you cannot control or predict.

Selling investments takes one to three business days. During that time, the market price could go up or down. If you are uncomfortable with this uncertainty, you can ask Vanguard to transfer your investments to another brokerage instead of selling them. This is called an in-kind transfer. The receiving brokerage must be able to hold the same investments, so confirm this before you request the transfer.

Closing retirement accounts requires extra steps

Closing an IRA, Roth IRA, SEP IRA, or other retirement account is more complicated than closing a regular investment account because the money has tax rules attached to it. If you withdraw money from a traditional IRA before age 59½, you may owe income tax and a 10 percent penalty. Roth IRAs have different rules. If you are moving the money to another IRA at a different bank, you can do a direct rollover, which avoids taxes and penalties.

Tell Vanguard whether you want a direct rollover to another IRA or a withdrawal to your personal bank account. If you choose withdrawal, Vanguard will withhold 20 percent of the money for federal taxes and send you a form explaining what happened. You will report this on your tax return. Do not close a retirement account without understanding the tax consequences — call Vanguard and ask them to explain your options before you decide.

Confirm the closure and keep your records

After you close your account, Vanguard will send you a confirmation letter in the mail. Keep this letter for your records. If you closed a retirement account, Vanguard will also send you tax forms — usually a 1099-R for an IRA withdrawal or a 5498 for a rollover. Do not throw these away. You will need them when you file your taxes.

If you transferred money to another bank, check that bank's account within five to seven business days to make sure the money arrived. If it did not, contact Vanguard with your confirmation number and ask them to trace the transfer. If you requested a check, it usually arrives within two weeks. If more than three weeks pass and you have not received it, call Vanguard again.

What to do if you change your mind

If you close your account and then decide you want to reopen it, you can. Vanguard will let you open a new account with the same type (brokerage, IRA, etc.) and link it to the same bank account you used before. However, you cannot reopen the exact same account number — it will be a new account. There is no fee to open a new account, but any investments you sold will have to be repurchased at current prices.

If you closed the account very recently — usually within a few days — call Vanguard and ask if they can stop the closure before the money leaves. This is not always possible, but it is worth asking before you proceed with reopening.

Frequently Asked Questions

Does Vanguard charge a fee to close my account?

No. Vanguard does not charge a fee to close any type of account. However, if you own mutual funds that have a short-term trading fee or redemption fee, that fee may explore when Vanguard sells them to close your account. Ask Vanguard about any fees tied to your specific investments before you close.

Can I close my account online without calling?

Vanguard's website does not have a self-service account closure tool. You must call 1-800-997-2329 or visit an office in person. Some account changes can be made online, but closing requires speaking to a representative.

What if I have a joint account with someone else?

Both owners must agree to close a joint account. Both of you do not have to be on the phone call, but Vanguard will ask for written permission from the other owner. Contact Vanguard to learn what form they need signed and how to submit it.

How long does it take for my money to arrive after I close?

If you are transferring to another bank, the money usually arrives within five to seven business days. If you requested a check, allow two to three weeks. If your account held investments that needed to be sold, add one to three extra business days for the sale to complete.

Will closing my Vanguard account hurt my credit?

No. Closing an investment account or brokerage account does not affect your credit score. Credit scores are based on borrowing and repayment history, not on investment accounts. Closing a Vanguard account has no impact on your credit.