Closing a Vanguard account takes about one phone call, but the steps depend on what type of account you have and whether you want to move the money or withdraw it
Vanguard lets you close most accounts by calling their service line at 1-800-997-2798. You will need your account number and Social Security number to verify your identity. The process itself is straightforward — a representative will confirm you want to close the account, ask where you want the money to go, and process the request. The timeline varies: if you are moving money to another brokerage, the transfer typically takes five to seven business days. If you are withdrawing cash, it depends on what you own — stocks and mutual funds settle in two business days, but some holdings may take longer.
The real decision is not how to close the account, but what to do with the money inside it. That choice affects whether you owe taxes, whether you face penalties, and how much of your money actually reaches you. The sections below walk through each scenario.
Key Takeaways
- Call Vanguard at 1-800-997-2798 with your account number and Social Security number ready to start a closure request.
- If you have a retirement account (IRA, 401(k) rollover), moving the money to another retirement account avoids when ready taxes and penalties.
- Withdrawing from a retirement account before age 59½ usually triggers a 10% early withdrawal penalty plus income tax on the full amount.
- Transfers between brokerages take five to seven business days; cash withdrawals depend on what you own but typically settle within two business days.
- Close the account only after confirming where the money is going — you cannot reopen a closed account and retrieve the funds.
Transferring money to another brokerage
If you want to move your Vanguard holdings to another brokerage, you have two options: an ACAT transfer (Automated Customer Account Transfer) or a manual withdrawal and deposit. ACAT is faster and simpler. You contact the brokerage you are moving to, give them your Vanguard account details, and they handle the transfer on your behalf. Vanguard will not initiate this — the receiving brokerage does. The transfer typically takes five to seven business days, and your holdings move as-is (you do not have to sell anything).
A manual transfer means you sell your holdings at Vanguard, withdraw the cash, and deposit it at the new brokerage. This takes longer and may trigger capital gains taxes if you have profits in taxable accounts. Use ACAT unless you have a specific reason to sell first, such as rebalancing your portfolio or moving away from Vanguard's funds.
If you have a retirement account at Vanguard, the receiving brokerage must be able to accept the same type of account. A Vanguard Traditional IRA can move to another brokerage's Traditional IRA, for example, but not to a taxable account. Ask the receiving brokerage whether they accept ACAT transfers before you call Vanguard.
Rolling over a retirement account
If you have a Vanguard IRA or a 401(k) rollover account, closing the account means moving the money to another retirement account — either at another brokerage or into your employer's 401(k) plan. This is called a rollover. The advantage is that no taxes are due and no penalties explore, as long as the money lands in another retirement account within 60 days.
You have two ways to do this. A direct rollover means the money moves from Vanguard straight to the new account without touching your hands. This is the safest route — there is no 60-day clock, and no taxes are withheld. A indirect rollover means Vanguard sends you a check, and you deposit it yourself. You then have 60 days to deposit it in another retirement account, or the full amount becomes taxable income and you owe a 10% penalty if you are under 59½.
When you call Vanguard to close the account, tell them you want a direct rollover and provide the name and account number of the receiving institution. Vanguard will contact them directly. If you must take an indirect rollover (because the receiving institution does not accept direct transfers), ask Vanguard to withhold 20% for taxes — this is automatic, but knowing it happens prevents surprises when you deposit the check.
Withdrawing cash from a taxable account
Closing a regular taxable brokerage account and withdrawing the cash is the simplest scenario. Call Vanguard, confirm you want to close the account, and tell them to send the proceeds to your bank account. They will ask for your bank routing number and account number. The money typically arrives within two to three business days after your holdings settle (usually two business days after the sale).
You will owe capital gains tax on any profit you made in that account, but only when you file your tax return — Vanguard will send you a 1099 form in January showing your gains and losses. If you have losses, you can use them to offset gains elsewhere or to reduce your taxable income by up to $3,000 per year. If you have held the account for more than a year, your gains are taxed at the long-term capital gains rate, which is usually lower than your ordinary income tax rate.
If you have a large unrealized gain and closing the account would create a big tax bill, consider whether you actually need to close it. You can straightforward stop using it and leave it open indefinitely. Vanguard does not charge an annual fee for inactive accounts.
Withdrawing from a retirement account before retirement age
If you are under 59½ and want to withdraw money from a Vanguard IRA or 401(k) rollover account, you will owe a 10% early withdrawal penalty on top of ordinary income tax on the full amount. This is a significant cost. A $50,000 withdrawal at a 24% tax rate plus 10% penalty means you keep roughly $33,000 and the rest goes to taxes and penalties.
There are a few exceptions where the 10% penalty does not explore: substantially equal periodic payments (a complex calculation), first-time home purchase (up to $10,000 lifetime), medical expenses above 7.5% of your adjusted gross income, and a few others. These exceptions are narrow and have strict rules. If you think one might explore, ask a tax professional before you withdraw.
If you do not may have access to for an exception and you are not yet 59½, the math usually favors leaving the money in the account and waiting. The growth you miss by withdrawing early often costs more than the penalty itself.
What happens to employer stock or company plans
If your Vanguard account holds employer stock or you have a 401(k) from a former employer, closing the account requires extra steps. Employer stock sometimes has tax advantages (called net unrealized appreciation) that disappear if you sell it as part of a rollover. A tax professional should review this before you close the account.
If you have a 401(k) from a previous employer held at Vanguard, you can roll it to your current employer's plan, to an IRA, or withdraw it. Each option has different tax consequences. Rolling to your current employer's plan may limit your investment choices but keeps the money in a workplace plan. Rolling to an IRA gives you more control and usually lower fees. Withdrawing triggers taxes and penalties if you are under 59½. Discuss these options with your employer's benefits department or a tax advisor before you call Vanguard.
Timing and what to do before you call
Before you call Vanguard to close the account, gather three pieces of information: where the money is going (another brokerage account number, your bank account number, or your new employer's plan details), what type of account it is (taxable, IRA, 401(k) rollover, etc.), and your account number. Having these ready means the call takes 10 to 15 minutes instead of 30.
If you are transferring to another brokerage, contact that brokerage first and ask whether they accept ACAT transfers from Vanguard. Some smaller brokerages or specialty firms do not. If they do not, you will need to sell your holdings at Vanguard, withdraw the cash, and buy new holdings at the new brokerage — a slower and potentially more expensive process.
Do not close the account until you have confirmed the receiving institution is ready to accept the transfer. Once Vanguard closes the account, you cannot reopen it and retrieve the funds. If something goes wrong in the transfer, you will need to contact both institutions to trace the money.
Frequently Asked Questions
Can I close a Vanguard account online?
No. Vanguard requires you to close accounts by phone at 1-800-997-2798. You cannot initiate closure through their website or mobile app. You will need your account number and Social Security number to verify your identity.
What if I have mutual funds that are not fully settled?
Vanguard will not close the account until all holdings have settled. Mutual funds typically settle in one business day, stocks in two. If you have a pending transaction, wait for it to settle before calling to close. If you call before settlement is complete, Vanguard will ask you to call back after the settlement date.
Do I have to pay a fee to close my account?
No. Vanguard does not charge a fee to close an account. If another brokerage charges a transfer fee, Vanguard may reimburse it if you ask — many brokerages do this to attract transfers, though Vanguard's policy varies by account type.
What if I want to close only part of my account?
You can withdraw money from a Vanguard account without closing it. Call Vanguard and ask for a partial withdrawal instead of closure. This is useful if you want to move some holdings elsewhere but keep the rest at Vanguard, or if you want to withdraw cash while keeping the account open.
How long does it take to close the account after I call?
The closure request is processed when ready, but the money does not move until your holdings settle and the transfer completes. If you are moving to another brokerage, expect five to seven business days total. If you are withdrawing to a bank account, expect two to three business days after settlement.