VUSXX (Treasury MM fund) Minimum Investment

[Hot Sauce]

The Vanguard Treasury Money Market fund (VUSXX) has a minimum purchase amount of $3K. I would like to buy $3K in a taxable brokerage account. My questions are:

1. If I buy 3K initially but then later redeem/withdraw some of the money and my balance drops below 3K, what happens?

2. If I redeem/withdraw it all and my balance in the fund (and account) drops to $0 for a few weeks or months, what happens? Will Vanguard close the account? Will I get hit with a fee?

Thank you!

[retiringwhen]

1.) They reserve the right to close the position, but I (and many others) have held smaller positions in the fund for long periods without consequences. The worst that would happen is they liquidate the VUSXX positions and transfer them to the settlement account which is usually VMFXX a very safe fund with similar risks and return but lower USGO %.

2.) If you have more than one holding in your account, nothing will happen, you just not see a balance for VUSSXX anymore. If VUSXX is the only holding, they may close the account if you are not careful on how the funds are removed (don't do an ACATS transfer, just withdrawal to a bank for example). There are no fees or costs for having account as long as you sign up for electronic statements delivery.

[suemarkp]

It is usually difficult to withdraw all of the account. There tends to be interest or dividends that land in the account at the end of the month if you had money in there for a fraction of the month. This is especially so with bond funds that pay monthly. Sometimes, getting fractional shares out are also difficult if they are being transferred and not sold.

[Makefile]

The reason for using VUSXX rather than the Federal Money Market fund that is your settlement fund is for state income tax efficiency. In my opinion, if less than $3000 is invested, it isn't even worth the hassle of maintaining a separate position. Just use the settlement.