We get a lot of questions around the difference between an EFT Form (TDAI 9045), an IRA Distribution Form (TDAI 2423), and the Move Money Advisor Authorization Form (TDAI 9341). Below we'll break down the differences and what can and should be used when. Each one can set up the ability to move money to or from a brokerage account and an external bank account but each has its own rules on when it can be used.
Electronic Funds Transfer (EFT) Form
The EFT form is used to request electronic bank transfers to or from accounts held at TD. These forms set up one-time authorization for the transaction requested. EFT forms can be used to request one time or recurring transfers, whichever your client prefers. That said, to request another or make any changes to existing transfer requests, it will require another EFT form (complete with client signature) to be submitted.
This form can be used to transfer funds into any account type but cannot be used to transfer funds out of IRA accounts, that requires an IRA distribution form.
IRA Distribution Form
The IRA distribution form is used to request distributions from IRA accounts only. It is similar to the EFT form in that it is used to set up one-time authorization for a transfer (either recurring or one-time transfer) out of an IRA account. It differs in that it is only used for IRA accounts where money is leaving the account and going to an external bank account. An EFT form will be NIGO'd if is submitted to request a distribution from an IRA account.
As it is a one-time authorization, the IRA distribution form will need to be submitted again, with another client signature, to make changes to an existing transfer or to set up a new transfer.
Move Money Advisor Authorization Form
The Move Money Advisor Authorization form is used to set up standing authority for an advisor to move money to or from a brokerage account and an external bank account. Unlike the EFT and IRA distribution forms, the Move Money form will allow an advisor to set up, edit existing, or cancel transfers as needed and with no further client signatures or permission. The Move Money form is able to be set up for taxable and non-taxable accounts alike, so it is able to be submitted on an IRA account.
Once signed, submitted, and processed by TD, an advisor will be able to access Veo and manage all of the transfer information directly in the client's account. This form is most useful when you know that you will be making a number of transfers to or from an account that will vary in timing and size, reducing the amount of paperwork required to send to your client.
This summarizes the basics of the differences between these three commonly used forms. Please don't hesitate to reach out to firstname.lastname@example.org or call (360) 301-7579 with any questions you have!