Mutual Fund Class Change at Vanguard

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inverter
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Mutual Fund Class Change at Vanguard

Post by inverter »

Does anyone know if it's possible to change mutual fund classes at Vanguard for a non-Vanguard fund in a taxable account without incurring a taxable event?

Specifically, I'd like to move from INTAX to CATZX without triggering any capital gains for a lower expense ratio. I inherited this, so not my first choice of funds!
Last edited by inverter on Fri Sep 24, 2021 10:50 am, edited 1 time in total.
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retired@50
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Re: Mutual Fund Class Change at Vanguard

Post by retired@50 »

inverter wrote: Fri Sep 24, 2021 10:31 am Does anyone know if it's possible to change mutual fund classes at Vanguard for a non-Vanguard fund in a taxable account with incurring a taxable event?

Specifically, I'd like to move from INTAX to CATZX without triggering any capital gains for a lower expense ratio. I inherited this, so not my first choice of funds!
This sounds like you'd have to check with Columbia. If the assets are held at Vanguard, that may complicate matters, but step #1 would be to see if Columbia would allow such a conversion.

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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asset_chaos
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Re: Mutual Fund Class Change at Vanguard

Post by asset_chaos »

If inherited, can you sell the fund INTAX with the step up in basis and pay no (little?) capital gains tax? Then invest the proceeds of the sale in whatever your first choice fund is.
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Topic Author
inverter
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Re: Mutual Fund Class Change at Vanguard

Post by inverter »

retired@50 wrote: Fri Sep 24, 2021 10:41 am
inverter wrote: Fri Sep 24, 2021 10:31 am Does anyone know if it's possible to change mutual fund classes at Vanguard for a non-Vanguard fund in a taxable account with incurring a taxable event?

Specifically, I'd like to move from INTAX to CATZX without triggering any capital gains for a lower expense ratio. I inherited this, so not my first choice of funds!
This sounds like you'd have to check with Columbia. If the assets are held at Vanguard, that may complicate matters, but step #1 would be to see if Columbia would allow such a conversion.

Regards,
Just to follow up and close this out if anyone has a similar situation. I called Vanguard (who has custody of the fund) and got transferred to the FundAccess team. We were able to change from Class A to Class Institutional of this Columbia fund without any charges and as a non-taxable event (i.e. share class change does not incur capital gains). Thanks to Vanguard's great customer service in this instance! :sharebeer
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David Jay
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Re: Mutual Fund Class Change at Vanguard

Post by David Jay »

inverter wrote: Mon Dec 20, 2021 11:44 amThanks to Vanguard's great customer service in this instance!
Wait - what? :wink:
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
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