Work with your Client Manager or directly with your Financial Manager to determine what account you would like to open. You'll have an initial setup meeting to finalize what investment products you want to use, the strategy you want to implement, and the amount you want to invest.
The Financial Manager will make an introduction to the Investment Operations Team who will facilitate and guide you through the account opening process. You can complete and execute all account opening documents electronically with DocuSign. The ways you may fund your new account are outlined below.
Your Compound Investment Accounts will be displayed on your Compound dashboard once your account is invested.
Once your accounts are opened, you will be set up with an online login for Schwab. Schwab's online dashboard allows you to initiate your account funding. Please see below for the most common ways to fund your Compound/Schwab account.
Funding a Retirement Account
We can help you transfer most types of investments, such as Individual Brokerage, Joint Brokerage, Traditional IRA, and Roth IRA accounts. We cannot transfer college savings plans, health savings accounts and active 401(k)s. However, we can discuss how to allocate those accounts within your overall asset allocation.
You are able to transfer most regular and retirement accounts without any tax consequences. However, we encourage you to speak with a qualified tax advisor if you have further tax questions after reading this FAQ. Compound can refer you to one upon request. Please also refer to these IRS guidelines to understand the potential tax implications of transferring accounts if you would like further information.
Yes, you can transfer your existing IRA brokerage account directly to a Compound IRA or Roth IRA at Schwab via a trustee-to-trustee transfer. Initiating an "in-kind" trustee-to-trustee transfer allows you to move your positions to Compound without needing to sell and repurchase your portfolio, or be deemed to have done so for tax purposes when you never intended to do so.
You can rollover your inactive 401(k) (i.e no longer employed by the company) with a direct rollover into your newly established IRA or Roth IRA. These rollovers are usually sent via check or wire transfer and are generally considered a non-taxable event if deposited back into a qualified retirement account within 60 days. In some cases, your 401(k) may have both pre-tax and post-tax money. If that is the case, we would complete two direct rollovers: one with the pre-tax portion moving into your IRA, and one post-tax portion moving to your Roth IRA.
A Roth conversion is a way to shift all or part of your IRA into a Roth IRA. Because such conversions generally require you to pay income taxes on conversion amounts, you cannot make these conversions online. Our Investment Operations team will assist you with this process.
You can transfer your spouse's IRA into a new Compound IRA account opened in their name. Your spouse or partner will be the account owner and need to complete relevant new account documents. You cannot roll over a spouse's IRA into account(s) titled jointly or in your name only. The IRS does not allow for the joint ownership of IRAs.
If you have a Roth 401(k) or 403(b), you can rollover your money into a Roth IRA, tax-free.
If you have a traditional 401(k) or 403(b), you can rollover your money into a Roth IRA. However, this would be considered a "Roth conversion," so you would usually owe taxes.
Your Client Manager will make an introduction to Compound's Investment Operations Team. They will facilitate and guide the account opening process — all documents can be completed via DocuSign.
These documents must be completed with physical signatures. The Investment Operations Team will facilitate the account opening process and send the required documents via FedEx.
Your Client Manager will make an introduction to our Schwab partner, Eva Favila, who will reach out to schedule an application call. Thereafter, her team will facilitate the account opening process (3 weeks).