Author Topic: If I already transferred my VG funds to Schwab, is it too late to do In-kind?  (Read 850 times)

wlthrtwll

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I closed my non-Ira VG account completely, and transferred the funds into Schwab (they are still listed as VG on my Schwab account and there were no taxes).  I'd like to exit all my VG accounts and put the money into comparable Schwab accts (for example: Convert VG international index to Schwab international index).  Is the only way to do this - is to cash out the funds and incur a large tax burden, or is it too late to do any in-kind transfer at this point since they are still VG mutual funds?

nalor511

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You can hold your vg funds as is at Schwab with no taxes and no fees. Just don't buy more. You can't sell and rebuy without taxes on gains.

Why don't you want to keep holding the VG funds?

ATtiny85

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You never had a chance to do anything “special” that would prevent this situation without selling and potentially causing taxes to be owed.

But yeah, what is it you want to accomplish?

bacchi

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You never had a chance to do anything “special” that would prevent this situation without selling and potentially causing taxes to be owed.

Vanguard does tax-free mutual fund-->ETF conversions for a lot of their funds.

To the OP: Yes, you missed the boat. The funds have to be held in a Vanguard account.

nalor511

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You never had a chance to do anything “special” that would prevent this situation without selling and potentially causing taxes to be owed.

Vanguard does tax-free mutual fund-->ETF conversions for a lot of their funds.

To the OP: Yes, you missed the boat. The funds have to be held in a Vanguard account.

You can always acats back, ETF convert, then acats out again

ATtiny85

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You never had a chance to do anything “special” that would prevent this situation without selling and potentially causing taxes to be owed.

Vanguard does tax-free mutual fund-->ETF conversions for a lot of their funds.

To the OP: Yes, you missed the boat. The funds have to be held in a Vanguard account.

A Vanguard ETF is still a Vanguard product. It sounded like OP wants no Vanguard, for a not yet known reason.

wlthrtwll

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To the OP: Yes, you missed the boat. The funds have to be held in a Vanguard account.

I'm having a hard time posting with all the permissions required to post - so I hope this isn't a repeat post.  Basically I wanted to say: Thanks, that is what I needed to hear.
« Last Edit: May 19, 2024, 05:05:48 PM by wlthrtwll »

MustacheAndaHalf

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Vanguard International and Schwab International are different brands that hold different stocks.  For example, VXUS holds 8616 stocks and SCHF holds 1525 stocks.  They are not the same kind.  A "transfer in kind" means to keep everything intact during a move from one brokerage to another.

You should consider your tax situation before selling those Vanguard mutual funds.  But you really, really do not want to buy more Vanguard mutual fund shares in a Schwab account: the cost is $74.95 per purchase.
https://www.schwab.com/pricing#:~:text=other%20mutual

You can trade ETFs at Schwab for $0/trade.  You can ignore your Vanguard mutual funds, and buy the ETFs you want.  That lets you invest, without having a tax impact from selling your old holdings.