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Easy asset transfer from taxable to Roth?
Old 10-24-2007, 07:11 PM   #1
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Easy asset transfer from taxable to Roth?

I have a taxable account with Vanguard and am planning to move those assets into a Roth (with Vanguard) at the beginning of next year.

Is there any way to make the transfer without incurring a taxable event? (I assume the answer is no.)

Has anybody done something like this with Vanguard, and if so, how was it?
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Old 10-24-2007, 07:40 PM   #2
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Quote:
Originally Posted by Peaceful_Warrior View Post
I have a taxable account with Vanguard and am planning to move those assets into a Roth (with Vanguard) at the beginning of next year.

Is there any way to make the transfer without incurring a taxable event? (I assume the answer is no.)

Has anybody done something like this with Vanguard, and if so, how was it?
Do you mean that you have a pre-tax retirement account with Vanguard that you wish to roll over into a Roth?

Because other than a rollover, there are strict limits to what you can put into a Roth.

Ha
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Old 10-24-2007, 09:37 PM   #3
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If I understand you correctly, you are looking to contribute (not convert) money to a Roth IRA using assets currently in a taxable account. You would be restricted by the contribution limits and the earned income restrictions. As I understand it, you would be taxed on the gains of the assets sold from your taxable account, since all of your Roth contributions need to be post-tax.

However, if you have specific holdings in that taxable account that have not appreciated, you might be able to sell those assets without incurring taxable gains.

I wouldn't take my word for it though...
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Old 10-24-2007, 10:28 PM   #4
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As I understand it, you would be taxed on the gains of the assets sold from your taxable account, since all of your Roth contributions need to be post-tax.
That's what I was getting at and what I figured was the case. I wasn't sure if there was any way to transfer taxable assets into a Roth IRA without incurring the taxable event (whether it be a gain or a loss).
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