Gain locks

You can potentially minimize your client's current tax liability by not selling holdings with an unrealized gain. The gain lock feature can be particularly helpful when a client is transferring in-kind holdings with sizable long-term gains (or even small short-term gains).

Note: Gain locks are only available in NQ accounts when the funds in question have an unrealized gain.

Check out the video below to learn more about Gain locks:

Common questions:

Q: Are gain locks available in qualified accounts?

A: No.

Q: Can I use gain locks to hold individual equities?

A: Yes.

Q: If there is a gain lock on a holding that has an unrealized gain, can I continue to keep it if it declines to an unrealized loss?

A: No, if the fund isn't part of your target strategy and has a loss it will be sold (6:38). Use the elective locks feature if you want to hold something at a loss.

Q: Can I turn on gain locks for all of my NQ accounts?

A: Yes, but it can only be turned on one account at a time (5:48).

Q: Can I hold onto a fund, but gradually sell out of it over time?

A: No, it's all-or-nothing (6:22).

Q: When I'm creating a new account, can I turn on the gain lock feature and have it apply to future holdings that come in?

A: Yes (5:20).

If your client wants to hold funds in a non-qualified account for sentimental reasons (even if the fund has an unrealized loss), or if the client wants to hold funds in a qualified account, check out the elective lock feature.