Transfer in-kind between Roth Accounts @ vanguard?

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sandramjet
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Transfer in-kind between Roth Accounts @ vanguard?

Post by sandramjet » Tue Feb 13, 2018 4:54 pm

I happen to have 2 Roth accounts at Vanguard. Both of them hold a mix of some old individual stocks and various funds. I wanted to "rearrange" things so that one account had only the stocks, while the other account held everything else.

I called Vanguard and asked how I could do this, but was told the only way to move money between Roth accounts is to sell in one, move the cash, and re-buy in the other. In other words, they allow in kind transfers from Roth to taxable, but not from Roth to Roth. They also indicated there was no way to simply combine two Roth accounts.

Just curious as to whether anyone else has encountered this? Or did I just happen to get connected to an inexperienced Vanguard rep?

Thanks!

livesoft
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Re: Transfer in-kind between Roth Accounts @ vanguard?

Post by livesoft » Tue Feb 13, 2018 4:56 pm

I find this kind of unbelievable because one can transfer-in-kind from say a Vanguard Roth to an external Roth [at TDAmeritrade, Fidelity, WellsTrade, etc.] and vice versa.

Perhaps it is because of the two kinds of accounts at Vanguard: VBS and the old-style mutual fund account ?? Maybe one of your accounts was an old-style Vanguard mutual fund account and you want to put non-Vanguard mutual funds in it? That cannot be done.
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sandramjet
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Re: Transfer in-kind between Roth Accounts @ vanguard?

Post by sandramjet » Tue Feb 13, 2018 5:04 pm

Both accounts at Vanguard are the newer brokerage accounts. All the funds are Vanguard funds.
(I find it hard to believe as well, which is why I asked )

FactualFran
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Re: Transfer in-kind between Roth Accounts @ vanguard?

Post by FactualFran » Tue Feb 13, 2018 5:45 pm

sandramjet wrote:
Tue Feb 13, 2018 5:04 pm
Both accounts at Vanguard are the newer brokerage accounts. All the funds are Vanguard funds.
(I find it hard to believe as well, which is why I asked )
I find it hard to believe, too. A few months ago, through the Vanguard web site, I did an in-kind transfer of investments from a Vanguard Brokerage traditional IRA to a Vanguard Brokerage Roth IRA. The Roth conversion was of the entire traditional IRA.

About a year ago I did a Roth conversion between the same two accounts of only one investment. I did that one by completing and mailing a paper form. The Vanguard web site did not support doing a transfer of only that investment.

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CAsage
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Re: Transfer in-kind between Roth Accounts @ vanguard?

Post by CAsage » Tue Feb 13, 2018 6:05 pm

I had three Roth IRA accounts at Vanguard last year (due to separation of conversions). In 2018, I spoke to my trusty account rep, who very happily and easily merged all the accounts into one account by phone. I think they pretty much just transferred the single fund in each of B & C to Account A. There was no issue whatsoever, so this is strange. It's a Roth IRA Brokerage account, which is now one account with 3~4 funds.
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celia
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Re: Transfer in-kind between Roth Accounts @ vanguard?

Post by celia » Tue Feb 13, 2018 6:24 pm

I transfer in-kind between my Roths all the time, but I am still on the old platform. If one is on the old platform, and one on the new VBS platform then you have to request they do it, but they will. The accounts have to belong to the same person (SSN) and not be inherited.

See if there is an "Exchange" link next to the "Buy" and "Sell" links on the right side of what you want to move. If so, you should be able to do it yourself online.
A dollar in Roth is worth more than a dollar in a taxable account. A dollar in taxable is worth more than a dollar in a tax-deferred account.

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elgob.bogle
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Re: Transfer in-kind between Roth Accounts @ vanguard?

Post by elgob.bogle » Tue Feb 13, 2018 7:11 pm

I have 2 ROTH IRA's in my name at Vanguard. The upside for me, in the past, was that I could re-purchase in one ROTH Account a mutual fund that I had recently sold that was in the other ROTH Account, without running into a roadblock due to frequent trading. I have not done this in a while, but if I do so during this round of market volatility, I'll let you know if it still works. In the interim, I will not be in a hurry to get rid of a ROTH Acct. I'll just let it sit around empty. Something to think about!

elgob

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