Where does my matured money physically go once it's moved within my Roth?

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sheople2
Posts: 323
Joined: Sun Dec 16, 2007 9:04 pm

Where does my matured money physically go once it's moved within my Roth?

Post by sheople2 »

Within my Roth, if I wish to move smaller percentage out of my VTSMF and into a 3-7 year maturity bond, treasury or a CD what happens to these when they mature? I'm only familiar with where my money outside of my Roth goes once matured, which is back into the Federal Money Market fund until I choose to move it elsewhere, ie a CD. I've never previously moved any money within my Roth.

(I've already moved the max money I wish to outside of the Roth for 2024. Any more than what I've moved - and the taxes for me would be prohibitive.)

I'm trying to balance holdings now.

Please keep answers simple. Thank you.
brightlightstonight
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Location: California

Re: Where does my matured money physically go once it's moved within my Roth?

Post by brightlightstonight »

It'll show up in your settlement fund, just as if you sold a fund or ETF.
steadyosmosis
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Re: Where does my matured money physically go once it's moved within my Roth?

Post by steadyosmosis »

Buy a short-term, small-dollar something in your Roth IRA, then learn what happens when it matures.
Early-retired ... portfolio AA 50/50 ... (46% tIRA, 33% RIRA, 16% taxable, 5% HSA) ... (16% SCHB, 16% VTI, 13% SCHF, 5% VITSX, 50% US Treasuries).
Topic Author
sheople2
Posts: 323
Joined: Sun Dec 16, 2007 9:04 pm

Re: Where does my matured money physically go once it's moved within my Roth?

Post by sheople2 »

...But I thought that the money in a Roth physically stays in the Roth. Yes?
If it goes into the settlement fund upon maturity then it has been technically removed from the Roth - and this can't happen. Maybe I should just leave it alone... ???
Silk McCue
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Re: Where does my matured money physically go once it's moved within my Roth?

Post by Silk McCue »

The settlement fund is held inside your Roth account.

Cheers
rkhusky
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Joined: Thu Aug 18, 2011 8:09 pm

Re: Where does my matured money physically go once it's moved within my Roth?

Post by rkhusky »

Each brokerage account (eg tIRA, Roth, taxable) has its own settlement fund. It’s listed at the top of the account listing, above all the individual fund holdings.
Last edited by rkhusky on Fri Nov 01, 2024 7:06 am, edited 1 time in total.
livesoft
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Re: Where does my matured money physically go once it's moved within my Roth?

Post by livesoft »

rkhusky wrote: Fri Nov 01, 2024 7:00 am Each brokerage account (eg tIRA, Roth, taxable) has its own settlement fund. It’s listed at the top of the account listing, above the all the individual fund holdings.
Indeed, the OP should look to see the settlement fund that they already have in their Roth IRA --- and then tell us about it after finding it. :)
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ResearchMed
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Re: Where does my matured money physically go once it's moved within my Roth?

Post by ResearchMed »

sheople2 wrote: Fri Nov 01, 2024 1:39 am ...But I thought that the money in a Roth physically stays in the Roth. Yes?
If it goes into the settlement fund upon maturity then it has been technically removed from the Roth - and this can't happen. Maybe I should just leave it alone... ???

Each account is a separate entity:
401k
403b
TIRA
Roth IRA
Taxable account

And one perspn can have more than one of each type (e.g., 2 x TIRA, 3 x taxable, etc.), at different financial firms (e.g., Fidelity, Vanguard, Schwab) or even within one firm (depending upon how each specific firm may handle such things).

As long as YOU do not initiate anything that "moves" money from a Roth IRA to some other account, it will stay in the Roth.
you can have quite a selection of holdings within each account, and that includes your Roth IRA.

In many IRA cases, there will be a variety of fund choices. (Some Employer-sponsored retirement accounts such as 403b accounts may have more limited choices.)

You could call the custodial firm to ask which is the settlement account.
Or... why not try selling a small amount of some fund (without any transaction fee), and see where the money lands.

RM
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retiringwhen
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Re: Where does my matured money physically go once it's moved within my Roth?

Post by retiringwhen »

livesoft wrote: Fri Nov 01, 2024 7:04 am
rkhusky wrote: Fri Nov 01, 2024 7:00 am Each brokerage account (eg tIRA, Roth, taxable) has its own settlement fund. It’s listed at the top of the account listing, above the all the individual fund holdings.
Indeed, the OP should look to see the settlement fund that they already have in their Roth IRA --- and then tell us about it after finding it. :)
Vanguard has recently "improved" their website and they no longer show the settlement fund details if the settlement balance is $0 on the Holdings page. This was surely done to reduce the size/space of the display on the screen, something screamed about for years on this site. The law of unintended consequences strikes again.

This change makes it difficult for inexperienced or unfamiliar account owners to identify the existence of the settlement fund in the various brokerage accounts.

I have had to explain this more than once to my family members recently. Maybe the answer is keep around a few pennies in the settlement fund. Buying ETFs makes that an easy task to accomplish :twisted:
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