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Transferring money between my Vanguard accounts

Posted: Sat Nov 21, 2020 11:40 am
by Toast_the_Knowing
I have two Vanguard accounts - a brokerage account and a Roth account. I would like to fund my 2021 Roth contribution from money that is in my brokerage account. Is this possible? If so, how do I do it?

Thanks

Re: Transferring money between my Vanguard accounts

Posted: Sat Nov 21, 2020 11:52 am
by retired@50
Toast_the_Knowing wrote: Sat Nov 21, 2020 11:40 am I have two Vanguard accounts - a brokerage account and a Roth account. I would like to fund my 2021 Roth contribution from money that is in my brokerage account. Is this possible? If so, how do I do it?

Thanks
Does the Roth account also operate on the Vanguard brokerage platform? In other words, does it have a settlement account?

Regards,

Re: Transferring money between my Vanguard accounts

Posted: Sat Nov 21, 2020 11:53 am
by retire2022
Toast_the_Knowing wrote: Sat Nov 21, 2020 11:40 am I have two Vanguard accounts - a brokerage account and a Roth account. I would like to fund my 2021 Roth contribution from money that is in my brokerage account. Is this possible? If so, how do I do it?

Thanks
toast

Are you aware you could add a local bank to your account?

https://personal.vanguard.com/us/MyHome

https://personal.vanguard.com/us/XHTML/ ... file.xhtml

go to:

Bank information

add bank account

https://personal.vanguard.com/us/XHTML/BankSummar

once you add your linked bank accounts you can purchase directly and draw cash into the Roth Contribution for the year eligible.

Re: Transferring money between my Vanguard accounts

Posted: Sat Nov 21, 2020 11:57 am
by stan1
Sure, the Vanguard user interface supports this. One thing I do is have the dividends from my taxable account pay into the settlement fund (not reinvested) and that means there's some cash available at the end of the year to make a Roth IRA contribution on Jan 1.

Re: Transferring money between my Vanguard accounts

Posted: Sat Nov 21, 2020 5:17 pm
by sycamore
Toast_the_Knowing wrote: Sat Nov 21, 2020 11:40 am I have two Vanguard accounts - a brokerage account and a Roth account. I would like to fund my 2021 Roth contribution from money that is in my brokerage account. Is this possible? If so, how do I do it?

Thanks
Here's one way to do it online.

From My Accounts, scroll down to your Taxable brokerage account
Click on "Buy and sell" and choose the "Exchange (buy to sell) Vanguard funds" option.
In the section "1. Where's the money coming from", select the fund to take money from (likely your settlement fund).
Enter the amount and click on Continue.

In the section "2. Where's the money going?", select the Roth account and the fund you want to contribute to.
Note: it should show you the yearly contribution maximum, how much you've contributed so far, and how much left to contribute.
Enter the same amount you entered earlier and click on Continue.
Agree to the prompt about the prospectus. Maybe even read it! :)
Next screen will show a summary of what you're requesting.
Double check it that it indicates you're making a contribution for the right year and amount, then click Submit.

Re: Transferring money between my Vanguard accounts

Posted: Sat Nov 21, 2020 9:53 pm
by Eagle33
Responses are assuming you have earned income from work in 2021.

Re: Transferring money between my Vanguard accounts

Posted: Sat Nov 21, 2020 10:02 pm
by MathIsMyWayr
A related or same question.
Does an investment account act like a bank account? For example, my account at bank A is linked to a Fidelity account and also to a Vanguard account. May I invest in the Fidelity account by withdrawing fund from the Vanguard account, and vice versa, without going through bank A? I am not talking about transferring assets in kind.

Re: Transferring money between my Vanguard accounts

Posted: Sat Nov 21, 2020 11:08 pm
by retire2022
MathIsMyWayr wrote: Sat Nov 21, 2020 10:02 pm A related or same question.
Does an investment account act like a bank account? For example, my account at bank A is linked to a Fidelity account and also to a Vanguard account. May I invest in the Fidelity account by withdrawing fund from the Vanguard account, and vice versa, without going through bank A? I am not talking about transferring assets in kind.
you have to link your Fidelity to your Vanguard account, since I don't have a Fidelity currently I can't confirm that.

In my Vanguard account, I am able to link two banks to my Vanguard accounts and have transfer to and from.

If you follow my instructions above you should be able to link your accounts or attempt to establish the connection.

Re: Transferring money between my Vanguard accounts

Posted: Sun Nov 22, 2020 9:12 am
by Toast_the_Knowing
Yes, the Roth account is with Vanguard.

Re: Transferring money between my Vanguard accounts

Posted: Sun Nov 22, 2020 9:20 am
by bradinsky
When in doubt, call Vanguard and request that they make the exchange for you.

Re: Transferring money between my Vanguard accounts

Posted: Sun Nov 22, 2020 10:14 am
by sycamore
MathIsMyWayr wrote: Sat Nov 21, 2020 10:02 pm A related or same question.
Does an investment account act like a bank account? For example, my account at bank A is linked to a Fidelity account and also to a Vanguard account. May I invest in the Fidelity account by withdrawing fund from the Vanguard account, and vice versa, without going through bank A? I am not talking about transferring assets in kind.
In your example, you could sell a Vanguard fund (via Vanguard online account or app) and have the proceeds sent to your bank account. Wait some time for the transfer to settle. Next buy a Fidelity fund (via Fidelity online account or app) to pull $ from your bank.

No you can’t directly move money from Fidelity to/from Vanguard, short of submitting an asset transfer request. So, no, in that sense your investment account is not like a bank account.

That said, Fidelity does offer a Cash Management Account, which may be more like a bank account than a regular brokerage account. I don’t have a CMA so I don’t know how it works or if you could have Vanguard pull (ACH) money from it.

Re: Transferring money between my Vanguard accounts

Posted: Sun Nov 22, 2020 10:20 am
by MathIsMyWayr
sycamore wrote: Sun Nov 22, 2020 10:14 am
MathIsMyWayr wrote: Sat Nov 21, 2020 10:02 pm A related or same question.
Does an investment account act like a bank account? For example, my account at bank A is linked to a Fidelity account and also to a Vanguard account. May I invest in the Fidelity account by withdrawing fund from the Vanguard account, and vice versa, without going through bank A? I am not talking about transferring assets in kind.
In your example, you could sell a Vanguard fund (via Vanguard online account or app) and have the proceeds sent to your bank account. Wait some time for the transfer to settle. Next buy a Fidelity fund (via Fidelity online account or app) to pull $ from your bank.

No you can’t directly move money from Fidelity to/from Vanguard, short of submitting an asset transfer request. So, no, in that sense your investment account is not like a bank account.

That said, Fidelity does offer a Cash Management Account, which may be more like a bank account than a regular brokerage account. I don’t have a CMA so I don’t know how it works or if you could have Vanguard pull (ACH) money from it.
That is the way I do, but it takes about 2 days for the fund show up in my bank account. Somebody in finance told me that I have to wait for the fund in the bank to use it, e.g., buy in Vanguard. Otherwise, illegal.

Re: Transferring money between my Vanguard accounts

Posted: Sun Nov 22, 2020 10:25 am
by Wiggums
I have funded it in two ways:

1) linked a bank account to vanguard and then did an electronic funds transfer.

2) transferred money from a settlement account in account A to account B

You can always mail a check too. There are many ways to gund the account.

Good luck to you

Re: Transferring money between my Vanguard accounts

Posted: Sun Nov 22, 2020 2:46 pm
by FactualFran
MathIsMyWayr wrote: Sat Nov 21, 2020 10:02 pm A related or same question.
Does an investment account act like a bank account? For example, my account at bank A is linked to a Fidelity account and also to a Vanguard account. May I invest in the Fidelity account by withdrawing fund from the Vanguard account, and vice versa, without going through bank A? I am not talking about transferring assets in kind.
Fidelity, and likely other brokers, support a brokerage account as a linked bank account. At Vanguard you would establish a linked bank account using a destination routing number and account number as described on the Determine Your Routing and Account Numbers web page at Fidelity.