How to do a Roth rollover from USAA to Vanguard

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JBQ
Posts: 1
Joined: Wed Jul 10, 2019 10:48 pm

How to do a Roth rollover from USAA to Vanguard

Post by JBQ » Wed Jul 10, 2019 11:15 pm

I am in the process of transferring my Roth from USAA to VG. If I sell my USAA mutual funds and then transfer the money to VG, are there any tax implications? Should I first sell my USAA mutual funds and then transfer the money, or transfer the mutual funds to VG and then sell them?

Silk McCue
Posts: 2471
Joined: Thu Feb 25, 2016 7:11 pm

Re: How to do a Roth rollover from USAA to Vanguard

Post by Silk McCue » Thu Jul 11, 2019 5:57 am

It is best to have Vanguard handle the transfer of the funds directly as it greatly reduces the chance that the IRS may find issue with your reporting of the even (I am dealing with a response to the IRS for 2017 right now because of such an issue). Unless you want to keep the same funds that you currently have just have Vanguard request that cash be transferred. Their is no tax due on selling funds within an IRA ever. Only when you take the money out of the tax deferred account into say your checking account or taxable brokerage account.

Cheers


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