Moving Vanguard funds to new Fidelity DAF

[walden]

Hi all, I'm newly retired and set up a DAF with Fidelity a couple months ago. Now I'm trying to fund it with non-covered shares of VTSAX held at Vanguard brokerage. The Vanguard rep I spoke today with said they cannot initiate a transfer only Fidelity can (not what Fidelity said last month). She also said that I could not initiate -- there were no forms for me to fill out and a call would not work. Today's Fidelity rep said to fill out their form but I do not see any place to indicate a specific lot (non-covered shares/various). Then I am to print, sign and snail mail to Fidelity. Has anyone else encountered this process? It seems slow and cumbersome and after my call today, I am not so confident that the correct lot will be selected. Any advice would be appreciated. Thanks

 

[gauss]

Is it possible that the cost basis accounting method that you choose at Vanguard (ie FIFO, average cost etc.) would determine which lots are transferred to Fidelity?

Just speculating out loud here.

-gauss

 

[RunningBum]

The easiest way might be to open a DAF at Vanguard, fund it with the VTSAX shares at VG, and then transfer the VG DAF to Fidelity. I did this a few years ago, because the end of the year was nearing and Fidelity said they couldn't guarantee it would get done that year, which was critical to me.

It was a pretty simple two step process. I used average cost on my VTSAX shares so I can't speak to selecting specific lots. How would you select specific uncovered shares if you are selling them rather than donating to the DAF? It'd probably be the same method.

 

[Montecfo]

When I have funded my Fidelity DAF i am pretty sure the paperwork started with my broker, E-Trade.

But they can do it both ways.

You want to use specific ID and specify low basis shares.

Fidelity should be able to do it correctly. I wouldn't worry.

 

[Montecfo]

I would ask about the lack of a lot spec.

And look through online forms at Vanguard. I bet they have a form to donate shares to charity. That is what you need.

Instructions you got from Vanguard seem like they have to be incorrect to me, but I've never used them.

 

[RunningBum]

It was a pretty simple two step process. I used average cost on my VTSAX shares so I can't speak to selecting specific lots. How would you select specific uncovered shares if you are selling them rather than donating to the DAF? It'd probably be the same method.

The reason I used average cost is that like the OP, I also have non-covered shares. I didn't have a record of purchases, and I may have even sold shares in the past at average cost, so that's what I've continued to use since it was the only way VG tracked them for me. OP can use SpecID but only if they've been tracking the purchases.