Transfer IRAs from Wisebanyan to Vanguard

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statikuz
Posts: 2
Joined: Mon Feb 12, 2018 7:45 pm

Transfer IRAs from Wisebanyan to Vanguard

Post by statikuz » Mon Feb 12, 2018 8:00 pm

Hi! I am consolidating my Wisebanyan and Betterment accounts to Vanguard. Right now they hold a variety of ETFs, some Vanguard, some not. I want to consolidate them all to Vanguard funds. Wisebanyan's clearing firm (Apex) charges account transfer fees (but not closing fees), and presumably Vanguard will also charge fees to sell the non-Vanguard funds if I transfer them in-kind.

Betterment says "For IRAs, we’ll use the direct transfer process and send a check, to avoid any tax consequence for you." I've also read elsewhere on this forum that outgoing IRA transfers are liquidated and the proceeds transferred, so that one looks like it won't be a problem.

I asked Wisebanyan support and they just said "For the IRA accounts, you can ask the other firm to request the liquidation upon submitting the transfer request."

Now Vanguard's "transfer an account" online process only gives you an in-kind transfer form, which is not what I want. I called them and they sent me a different form, which has the option to "Sell all funds and transfer as cash" but that's under the "From a mutual fund company" section. Under the "From a brokerage firm" section, it only has the option to transfer in-kind. Does it matter if I pick "From a mutual fund company" even though Wisebanyan is a brokerage firm?

Here's the relevant page of the form I got: https://i.imgur.com/BgYjJu2.png

Updated, here's the actual form: https://www.vanguard.com/pdf/v412.pdf

I stumbled across this in search results, maybe this is what I need? https://www.vanguard.com/pdf/s258.pdf

I just want to make sure I do the right thing so I can save on the account transfer fee and the subsequent transfer fees for re-allocation. Has anyone done this successfully? Just looking for some more info, or at least the right questions to ask before I hit up their customer service again.

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Watty
Posts: 12518
Joined: Wed Oct 10, 2007 3:55 pm

Re: Transfer IRAs from Wisebanyan to Vanguard

Post by Watty » Tue Feb 13, 2018 7:22 am

Instead of worrying about how to automate the sale of everything why not just sell it all yourself then have Vanguard start the transfer? The investments would only be out of the market for a week or so and that would help avoid selling everything on a crazy day. If you are selling stocks or ETF's then you can also use limit orders to help control the price that you get.

If you call Vanguard they should transfer you to an account transfer specialist that will walk you through the process and make sure that you get the right forms to sign.

statikuz
Posts: 2
Joined: Mon Feb 12, 2018 7:45 pm

Re: Transfer IRAs from Wisebanyan to Vanguard

Post by statikuz » Tue Feb 13, 2018 8:22 am

Yes, obviously that's the easiest, but I can't. The funds are with a robo-advisor, so I don't have any direct control over trading.

I already called Vanguard and they already gave me a form but it doesn't seem to me like the right one. I'll get back with them later but I wanted to see if anyone else had done this with this company. Did you read the post?

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