Stock Plan in Etrade to Vanguard Index

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JessicaLee128
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Joined: Wed Mar 29, 2017 2:41 pm

Stock Plan in Etrade to Vanguard Index

Post by JessicaLee128 » Mon Jan 22, 2018 12:32 pm

Hi there. I have had an employee program stock plan in Etrade for about 6 or 7 years now. It is one stock ticker purchased over the term of 3 years. There is only $1,400 in that account. The stock has been flat for years and years. I want to take my money ($1,400) out of that account, close my e-trade account, and open up an investment account with Vanguard. I already have my Roth stashed away at Vanguard so now I am looking to open an investment account so I can purchase index funds. I believe the minimum to invest in such account is $3,000.

My question to everything is this: is there a smart way to take my investment out of e-trade stocks and put it straight to Vanguard? I am not sure if such transfer exists given they are two different account types. But I do not want to make the mistake of taking out money from e-trade and paying taxes on it if I can avoid that somehow by putting it into another investment type account. Any help is greatly appreciated!

bloom2708
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Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: Stock Plan in Etrade to Vanguard Index

Post by bloom2708 » Mon Jan 22, 2018 3:35 pm

With that dollar amount I think it would be best to sell at Etrade. Note the gain or loss as you might have pay tax on any gains.

Move/Transfer the $1,400 to your checking account from Etrade. Open a taxable brokerage account along side your Roth IRA at Vanguard.

You could always buy the ETF version of the Total US market index (VTI) with a $1,000 minimum to start. Just an example. I'm not sure what your asset allocation (across all your investments) is and what you are looking to buy at Vanguard.

Transfer from your checking account (linked to Vanguard) when you buy in your new account.
"We are here not to please but to provoke thoughtfulness" Unknown Boglehead

BlackcatCA
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Joined: Sat Jan 20, 2018 2:55 pm

Re: Stock Plan in Etrade to Vanguard Index

Post by BlackcatCA » Mon Jan 22, 2018 7:36 pm

I did exactly this transfer a couple of years ago. I called Vanguard and they were more than happy to help me move the account over from Etrade and set up a similar brokerage account at Vanguard. It was a direct transfer since selling would have incurred substantial capital gain tax. In your case as suggested by bloom2708, if the stock hasn't grown much and it is a long term holding, it may be easier to simply sell it, and pay a few dollar of taxes.

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badbreath
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Re: Stock Plan in Etrade to Vanguard Index

Post by badbreath » Mon Jan 22, 2018 8:04 pm

Move it as a IRA then roll it into your Roth and pay a very small tax
“While money can’t buy happiness, it certainly lets you choose your own form of misery.” Groucho Marx

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