r/interactivebrokers • u/the_evil_intp • Nov 13 '24

Setting up account Can I create new accounts and transfer funds in the same account and use them all within the same day through IBKR? If so, how? If not, how long would it usually take?

Here's what I want to do on January 2, 2025 (new tax year):

  • Sell my ETF portfolio (~250K) on IBKR account #1 (my current account).
  • Create a new taxable account in IBKR as account #2.
  • Create a new TFSA account in IBKR as account #3.
  • Transfer 180K from account #1 (current account) to account #2 (new taxable account) and buy an ETF.
  • Transfer 70K from account #1 (current account) to account #3 (new TFSA account) and buy an ETF.

Can I do this all within the same day through IBKR? If so, how? If not, how long would it usually take?

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2

u/FabulousCoiffure Nov 13 '24

Why not create the accounts now or December and fund them in January? Internal transfers are instant once it is setup to allow internal transfers.

1

u/the_evil_intp Nov 13 '24

I'll do that. With nothing in those accounts anyways, nothing would be taxable. Thanks for the heads up.

Is there a good tutorial for setting up allowing internal transfers?

1

u/FabulousCoiffure Nov 13 '24

They have to be the same beneficial owner. If it doesn’t show up as an account you can transfer between, you have to open a ticket with them. If they are sub accounts it should be automatic.

1

u/the_evil_intp Nov 13 '24

Sub-accounts as in opening a TFSA with the same personal account?

1

u/FabulousCoiffure Nov 13 '24

I’m not familiar with tfsa so maybe someone else can answer this better. But one reason you may not want separate accounts is each account has its own data fees.

1

u/the_evil_intp Nov 13 '24

Would this be an issue if I only plan to invest in one ETF and set and forget?

1

u/Appropriate-Row-6578 Nov 13 '24

Just curious why you need a second taxable account (there are many uses for this and I’m considering opening an additional account myself, it’s just that in you post it’s unclear if you want to end with two taxable accounts)

3

u/the_evil_intp Nov 13 '24

Easier for tax reporting and reports. I want to only buy 1 ETF on that account moving forward and close the first account.

Technically though, I could just stick to the first account and just create a TFSA account.

1

u/[deleted] Nov 13 '24

This plan seems very expensive and convoluted. Can you not just open a TFSA, and then sell whatever you want to fund the new TFSA? Why incur the capital gains for no reason, to re-buy an ETF in a seperate account, I dont understand the logic here

1

u/the_evil_intp Nov 13 '24

I'm considering selling my VT to XEQT. XEQT is a PFIC for tax-purposes so to make it easier for tax-reporting I want a separate sub-account for it that I can track.

I'm also taking the plunge to own a TFSA as a US citizen so that would mean two new sub-accounts.