Vanguard Money Market in IRA

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PinotGris
Posts: 533
Joined: Tue Feb 14, 2012 9:38 pm

Vanguard Money Market in IRA

Post by PinotGris » Wed Dec 23, 2015 2:36 pm

I do not have a money market account in my IRA. It was never established when it was set up many years ago. Now getting a money market account into my IRA is getting complicated. It looks like i need to open a IRA Brokerage account which will automatically create a sweep money marker account in my IRA. But when I go to have the income from the funds go into this account instead of reinvesting i am getting a message that I cannot do it with a zero balance in the account. ???? So do I need to sell some shares and keep it in cash in the IRA MM in order to use it?

I also got a message that you cannot have the Prime moneymarket in 2016 but another Fed. account. anybody know anything about this?

thank you.

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FiveK
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Re: Vanguard Money Market in IRA

Post by FiveK » Sat Dec 26, 2015 6:14 pm

Why do you want a MM in your IRA?

Have you tried calling Vanguard and asking them?

livesoft
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Joined: Thu Mar 01, 2007 8:00 pm

Re: Vanguard Money Market in IRA

Post by livesoft » Sat Dec 26, 2015 6:16 pm

Yep, call up Vanguard about an hour after they open next week and get them to [try to] solve your problem. If they won't or cannot solve it, then simply move your money to another financial institution.
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RyeWhiskey
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Re: Vanguard Money Market in IRA

Post by RyeWhiskey » Sat Dec 26, 2015 6:19 pm

You need to call Vanguard. I am fairly certain that your situation is less complicated than you think and can be resolved in under 15 minutes, but it will need to be done on the phone rather than through this forum. :beer
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SeekingAPlan
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Re: Vanguard Money Market in IRA

Post by SeekingAPlan » Sat Dec 26, 2015 7:32 pm

In 2016 you will be required to have a US government or treasury money market fund as your core account rather than the Prime Money Market. The reason for this is that government / treasury funds will maintain a stable $1 NAV. Beginning in 2016 non-government MM funds may charge a redemption fee and / or temporarily halt redemptions if fund liquidity falls below regulatory requirements. Such MM funds would not be appropriate for a transaction oriented position in your IRA.

This change is not limited to Vanguard.

jimkinny
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Re: Vanguard Money Market in IRA

Post by jimkinny » Sun Dec 27, 2015 7:26 am

I have run into this issue in the past even though I have MM accounts for a long time. It was never important enough for me to call/message Vanguard.

I generally have distributions going to MM accounts in order to simplify any tax loss harvesting opportunities. I then invest the money to a MF of my choice. This results in a zero balance in MM.

If I then TLH, Vanguard will not allow me to direct the div/cap gains from the new TLH fund partner to the MM fund because of the zero balance. Div/cap gains from other funds already set up to go to the MM fund will do so, no more zero balance. Dumb.

PinotGris
Posts: 533
Joined: Tue Feb 14, 2012 9:38 pm

Re: Vanguard Money Market in IRA

Post by PinotGris » Tue Jan 19, 2016 3:39 pm

Very strange. I still do not have a money market account in my IRA, which I can get only if I open a brokerage account, which I applied for, but nothing so far. no brokerage account, no money market. i am diverting distributions from all funds to my bond fund, which is the only one with green arrow right now so it is ok, but still I do not understand why it is taking so long.

I had a great rep all of last year and now a new rep. who is also excellent but he is puzzled as well.

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