This definitely transcends the usual Vanguard poor communication, and if taken at face value, may well be negligence, perhaps even in the full legal sense. Maybe try filing a written formal complaint with Vanguard, so that this gets past their uninformed and useless customer service agents and up to someone who may have more or better information, and perhaps more influence within Vanguard.I asked the same question. However, I was told that it is not possible to withdraw over time. I was told in no uncertain terms that I would have to withdraw funds or transfer to a different provider after 2025. The woman adviced" I would transfer sooner than later". ... Yes, Vanguard communication has been unclear in the past. But this is a new dimension. If it would be possible to keep a frozen account, they could have communicated that at this time using that terminology. But they did not. Instead, at least in my case, I was told on the phone to leave now.
I'm wondering if there is anything country-specific in this. Both bluejeansman and I are in the UK; you are not. Perhaps Vanguard plans a different approach across countries? Just a vague thought, since what you hear seems totally at odds with what we think we know so far. (Although, from the sound of things, Vanguard have now gone back on their earlier statement to bluejeansman that he can transfer to brokerage. I am continually amazed at how clueless Vanguard's customer service agents are.)
Predictable, sadly. It sounds like they want to dismantle the entire mutual fund only structure, leaving only brokerage. That means losing any W-8BEN handling. Probably all online access too, with only phone available. I imagine even no more annual statements. Retirement accounts are supposed to be sources of financial safety. Vanguard have managed to turn them into huge sources of stress.... could I still submit a W8ben by mail or online. She checked with her team. The answer was that there will be no structure to provide for that service.
Weirdly, for UK and Indian residents, future lack of a W-8BEN feature at least is no additional detriment. Vanguard has already said that for these people, it will not honour W-8BEN withholding reductions anyway.
Statistics: Posted by TedSwippet — Wed Oct 30, 2024 4:00 am