Author Topic: Who here has transfered Traditional IRA from Edward Jones to Vanguard?  (Read 2427 times)

CatamaranSailor

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Hi,

I'm interested in talking with someone who has made the switch from Edward Jones to Vanguard. I'm thinking of doing a direct transfer "In Kind" of my wife and I's traditional IRA accounts. so as to not have any tax consequences and to make the move as seamless as possible. But, I would love to talk to someone who's done this already to get their take.

Thank you kindly!!
« Last Edit: October 24, 2015, 05:22:31 PM by Sailor14 »

MDM

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Re: Who here has transfered Traditional IRA from Edward Jones to Vanguard?
« Reply #1 on: October 24, 2015, 05:19:03 PM »
No experience with Edward Jones, but we did exactly this with an account at Raymond James.  Assuming you meant IRA instead of 401k (true?), all that it took was following the procedure that starts here: https://personal.vanguard.com/us/litfulfillment/ELFMainResults?cat=OAFM&subCat1=ORET&subCat2=XIRA.

See also http://www.obliviousinvestor.com/how-to-leave-your-broker/.

Painless.

CatamaranSailor

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Re: Who here has transfered Traditional IRA from Edward Jones to Vanguard?
« Reply #2 on: October 24, 2015, 05:22:08 PM »
Yep. Traditional IRA. I'll fix that!

Thanks for the link!

merlin7676

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Re: Who here has transfered Traditional IRA from Edward Jones to Vanguard?
« Reply #3 on: October 29, 2015, 07:55:17 AM »
I did it several months ago...very painless. Just called up Vanguard and told them I wanted to move my traditional IRA into Vanguard.
They took care of the rest. Just had to talk with the broker and confirm that yes I wanted it all moved, yes I wanted to move into mutual IRA fund X.
I will say b/c the the 2 funds I had my IRA in Edward Jones weren't in Vanguard they had to sell them and then buy the Vanguard ones I did end up losing some money. Not in the grand scheme of things it wasn't too bad.

frugalnacho

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Re: Who here has transfered Traditional IRA from Edward Jones to Vanguard?
« Reply #4 on: October 29, 2015, 11:56:17 AM »
You won't have tax consequences when moving and IRA to another provider.  You can sell everything in the IRA and buy totally different vanguard funds.  Anyone can do that in their IRA at any time whether they are changing providers or not.  You won't pay taxes on that until you withdraw it from your IRA and it counts as income.  Just make sure to contact vanguard so they can roll it all over officially.  They will contact EJ and have the money sent directly from EJ to vanguard without you ever touching it. If you close your account at EJ and withdraw all the money you will be penalized and forced to count it all as income (and won't be able to put it all back into an IRA at vanguard - you will be limited to the normal annual contribution limits).  So just make sure to contact vanguard and tell them that you want to roll it over and they will guide you through the steps, and there will be no tax consequences.

An in kind transfer to avoid taxes is only necessary in non tax sheltered accounts.  Like if I bought $20k worth of a fund, and it went up to $30k, and then I decided I wanted to move it to vanguard...

If I sell it I have to realize $10k in capital gains and then repurchase the fund I want at the new provider with a new cost basis of $30k.
If I do an "in kind" transfer they will just transfer my shares with the old cost basis of $20k to the new provider. I'll still owe taxes on that when I eventually sell, but that will probably be more advantageous than paying the tax now.

Vilgan

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Re: Who here has transfered Traditional IRA from Edward Jones to Vanguard?
« Reply #5 on: November 01, 2015, 01:37:21 PM »
An in kind transfer to avoid taxes is only necessary in non tax sheltered accounts.  Like if I bought $20k worth of a fund, and it went up to $30k, and then I decided I wanted to move it to vanguard...

This is true, but another advantage of an in-kind transfer is avoiding a period of time where you are out of the market. If its just 10k or something that might not matter, but if you are moving 500k and the market jumps 10% while you are in cash, you might feel pretty sick about it.