I have recently begun learning about fund expense ratios and how they can erode returns over time. I discovered that my Roth has an expense ratio of 1.95% and a deffered load of 1.0% (facepunch). I see Vanguard has Roth IRAs for something in the neighborhood of .20% expense ratio. It seems like a no brainer. Is there something I am missing? Also would there be any penalties or taxes with such a move? It seems like I can just do a direct transfer.
The only thing I'd say you are missing is that Vanguard has index funds with a 0.05% expense ratio. But choose the fund that best suits you.
Vanguard also has a very helpful "conceirge service" that will set up all the forms and initiate the transfer for you. I did this a few months ago, and it takes a total of about 10 minutes of your time. You can call their number at 800-841-7999 (or google it if you don't trust random numebrs given out in a forum).
As long as the funds are rolled over from one ROTH to another it's a "non-taxable event". If you have Vanguard handle it they'll do a wire tranfer of the funds and you never have to touch the money yourself.
Alternatively, you can close the account yourslef, have them write you the check (preferably made out to Vanguard on your behalf), and then you have 60 days to deposit the full amount into a ROTH of your choosing.
