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No way around taxes when moving taxable funds?
Old 08-10-2015, 01:31 PM   #1
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No way around taxes when moving taxable funds?

One of my spreadsheet pages totals up $ of ours held per fund company.
Someday, I would like to simplify a bit, by moving funds from our far smallest player, TRP, to Vanguard. However, the TRP funds which are a S&P 500 Index and a dividend growth fund, are both in a taxable account. Checking unrealized gains, they are in the area of $17k total.

If we were to sell them and realize that $17k, that would really dig into how much Roth conversion we can do, and stay just within the 15% tax bracket. Right now, I value the continuing Roth conversions more than a fund-location simplification.

Is there any (legal) way to transfer taxable funds or $ between fund companies without incurring a taxable gain?

Another option would be to wait for a major market crash... and have little to no gains to declare then. What a comforting thought!
I'm not in any hurry, but am interested if there are other avenues.
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Old 08-10-2015, 01:38 PM   #2
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Check if the brokerage can do an in-kind transfer.
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Old 08-10-2015, 01:45 PM   #3
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Right idea but I would explore it from a different direction... ask Vanguard if they can arrange to have the funds moved in-kind from where they are now to Vanguard.
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Old 08-10-2015, 05:23 PM   #4
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I am doubtful it could be done. You have an account with T Row Price with an open ended S&P 500 fund. To move it to a Vanguard open ended S&P 500 fund seems unlikely. You MIGHT be able to have the T Row Price position moved to a brokerage account. If you had two brokerage accounts they could do a ACAT transfer and move the positions.
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Old 08-10-2015, 08:17 PM   #5
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Vanguard has a FundAccess feature that includes many many funds and ETFs from other institutions including TRP Equity Index 500. I would call Vanguard as suggested above.
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Old 08-10-2015, 08:18 PM   #6
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You can transfer shares of a mutual fund from e-trade to schwab, no problem. Same thing with individual stocks. But I doubt you can exchange TRPs S&P500 fund for Vanguard's S&P500 fund without incurring taxes. If you want to keep your TRP fund, but have it held by Vanguard, that's probably fine.
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Old 08-10-2015, 08:21 PM   #7
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But what I am suggesting is that the OP set up a brokerage account with Vanguard Brokerage Services and then transferring the TRP S&P 500 shares in question to the VBS brokerage account.
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Old 08-10-2015, 08:49 PM   #8
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Quote:
Originally Posted by pb4uski View Post
But what I am suggesting is that the OP set up a brokerage account with Vanguard Brokerage Services and then transferring the TRP S&P 500 shares in question to the VBS brokerage account.
+1
I just did this but with Fidelity. Moved positions in TRP and Vanguard to our Fido brokerage account so all positions are now at Fido. PLUS, Fido paid us for the pleasure.
This act, of course, did not reduce the nbr of positions but does make it a lot easier to time and choose which ones to sell first.
If you do an inkind transfer, strongly recommend you check transfers include lots and values that reflex your actual acquisition.
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Old 08-10-2015, 08:54 PM   #9
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T Rowe Price funds cannot be exchanged tax-free for other equivalent funds in other families. But T Rowe Price funds can be held in many brokerage accounts and they can transfer shares in full or partially as a non-taxable event to such a brokerage. Use a transfer form from the receiving brokerage and they will want a recent T Rowe Price statement showing the shares.
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Old 08-10-2015, 09:14 PM   #10
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Been trying to do this myself. One of my first steps for me was to turn off auto-reinvestment in TRP funds. (and put those proceeds in VG funds) I'll look into moving the actual shares, but the main problem for me was the fees in TRP vs similar VG funds.
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