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This only seems to allow move of folders within "Local Folder". It won't move, for example, an imap folder to another account as I was hoping it would. I see no mention in the description that this only applies to local folders.

You are correct. We will add this note to the description.
Thank you

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Disclaimer: "5 Star" rating is based upon using the "Move Folder" add-on ONLY TWICE - thus it is possible that there could be some Glitch that would be found with extensive usage.
HOWEVER: Based upon moving 2 Thunderbird Folders from "Active" mail box trees to "Local Folders" MY experience thus far is: 1) the moves went off as expected; and 2) the process was MUCH quicker than the "Drag & Drop" process previously attempted.
YMMV...