To close your M1 Finance account, you’ll need to empty your balances first, then request closure through M1’s chat support. The process is straightforward but involves a few steps depending on which M1 products you use, and there are fees to watch for if you have an IRA or want to transfer holdings to another brokerage.
Empty Your Account Before Requesting Closure
M1 won’t close an account that still holds money or investments. Before you can request closure, you need to bring each account’s value down to the required threshold. For investment accounts (Individual, Joint, or IRA), the balance must be under $1. For M1 High-Yield Savings, the balance must be exactly $0.
You have two options for getting your investments out: sell everything and withdraw the cash, or transfer your holdings to another brokerage. Selling is the simpler route. You liquidate your positions within M1, wait for the trades to settle (typically two business days for stocks and ETFs), then withdraw the cash to your linked bank account. If you’d rather keep your positions intact and move them to a new broker, you can initiate an ACAT transfer (a standard brokerage-to-brokerage transfer), but M1 charges a $100 outgoing transfer fee for this.
Cancel Recurring Transfers and Auto-Invest
Before you liquidate or transfer, turn off any recurring deposits or auto-invest schedules so new money doesn’t flow in while you’re trying to empty the account.
On the web, go to the Home tab, scroll to the Transfers section, and select Recurring. Click the transfer you want to remove, then select Delete. On mobile, follow the same path: Home tab, Transfers section, Recurring. Tap the transfer, tap Edit in the top right, then select Delete. Repeat for every active recurring transfer.
Pay Off Any Margin Loan Balance
If you’ve borrowed against your portfolio using M1’s margin loan feature, you must repay the full balance before the account can be closed. Go to the Borrow tab in your M1 account, select Pay Back, and follow the instructions to pay off the loan. Keep in mind that if your investments are collateral for the loan, you’ll need to pay the loan first before you can sell those positions and withdraw the proceeds.
Close Accounts in the Right Order
M1 has a dependency rule that can trip people up: if you have an M1 High-Yield Savings Account or High-Yield Cash Account, you must keep at least one Individual or Joint Invest account open. That means you need to close your savings or cash account first, then close the investment account.
If you’re closing everything, work in this order:
- First: Withdraw all funds from M1 High-Yield Savings or Cash and close those accounts.
- Second: Liquidate and withdraw (or transfer) your investment account holdings.
- Third: Request closure of your investment accounts once balances are under $1.
How to Submit the Closure Request
M1 handles account closures through its chat support rather than a self-service button. Log in to your account, then click “Help” in the lower left corner on the web, or tap “Client Support” in your account settings on mobile. In the chat window, type “close account” and follow the prompts. The system will walk you through confirming which accounts you want closed.
Make sure you’re logged in when you start the chat. If you’re already authenticated, the process is faster because the system can verify your identity and pull up your account details automatically.
Fees for IRA Closures and Transfers
Closing a standard taxable investment account costs nothing as long as you sell your holdings and withdraw the cash yourself. But two situations trigger fees:
- Outgoing ACAT transfer: $100. This applies any time you transfer holdings to another brokerage instead of selling them at M1.
- IRA termination: $100 per event. This fee applies when you close a Traditional, Roth, or other IRA account at M1, regardless of whether you transfer the funds or take a distribution.
These two fees can stack. If you’re transferring an IRA to a new broker, you could pay $200 total: $100 for the IRA termination and $100 for the outgoing transfer. Some receiving brokerages will reimburse transfer fees if you ask, so it’s worth checking with your new broker before initiating the move.
Tax Implications of Selling Before Closure
If you sell investments in a taxable account, each sale is a taxable event. You’ll owe capital gains tax on any profits or can claim a loss on positions that lost value. Short-term gains (on investments held less than a year) are taxed at your ordinary income rate, while long-term gains get lower rates.
For IRAs, the tax picture depends on the type. Closing a Traditional IRA and taking a cash distribution means the full amount is taxable income, and you may owe a 10% early withdrawal penalty if you’re under 59½. Rolling the funds into another IRA or qualified retirement account avoids taxes entirely, which is why a direct transfer to a new broker is usually the better move for retirement accounts despite the fees. Roth IRA contributions can be withdrawn tax-free, though earnings may be taxable if the account hasn’t been open for five years or you’re under 59½.
How Long the Process Takes
The timeline depends on which exit path you choose. Selling positions and withdrawing cash typically takes about a week total: two business days for trades to settle, then one to three business days for the bank transfer. An ACAT transfer to another brokerage usually takes five to seven business days once initiated. After your balances are cleared and you submit the closure request through chat, M1 generally processes the closure within a few business days.
You’ll want to save or screenshot any tax documents, account statements, or transaction history before the account is fully closed, since you may lose access to those records afterward.