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Learning, Sharing, and Teaching => Investor Alley => Topic started by: tryathlete2011 on January 04, 2016, 07:31:56 AM

Title: Exchange taxable MF for ROTH to fund 2016?
Post by: tryathlete2011 on January 04, 2016, 07:31:56 AM

I have a pretty basic question. I have about 100k sitting in a taxable mutual fund with Vanguard and was thinking of taking 5500 of that to fund my Roth for the year immediately. Is there any negative effect taxwise to such an exchange?

Title: Re: Exchange taxable MF for ROTH to fund 2016?
Post by: dandarc on January 04, 2016, 07:38:51 AM

If you would realize a capital gain from selling the $5500 worth of shares, then yes.  You can't transfer in-kind from a regular brokerage to an IRA.

Title: Re: Exchange taxable MF for ROTH to fund 2016?
Post by: tryathlete2011 on January 04, 2016, 07:52:52 AM

I was afraid of that, thanks.

Title: Re: Exchange taxable MF for ROTH to fund 2016?
Post by: braje on January 04, 2016, 11:49:57 PM

What are the gains, are they short term or lower ft term, what is your tax rate?