Exchanging Mutual Fund Shares in a Roth IRA - Taxable?
Background: I have recently transferred my Roth IRA and Individual investment accounts from American Funds to Vanguard. I did a direct transfer of the Roth IRA into VFIFX with vanguard, and cashed out the individual account and plan to buy a selection of Vanguard mutual funds.
I should have asked for advice before doing all this because perhaps there was a way to avoid that capital gains tax generated by the sale of the individual account. However, I did not and I have a new question.
Question: If I exchange shares within my Roth IRA account, does this create a taxable event?
Speculation: I'm guessing that it does not because it is within a Roth IRA and that's the magic of a Roth, but I'd like to verify this with someone who knows more than I do.
To ER is human.