my wife does this every six months with interest coming off her 2025 Tip bonds. She transfers the funds from her brokerage IRA to Short-term Investment Grade bond fund in her Traditional IRA (still mutual fund platform). She has been doing this since she bought the Tips in October, 2008.In the past when I've done an exchange where you're going through the exchange flow such that you're telling Vanguard to sell a fund in one account and then buy the same type of fund in another account Vanguard will mark this as a Transfer in your transaction history. So you end up with 2x "Transfer" transactions and not 1x "Buy (exchange) & 1x "Sell (exchange)".Typically an exchange on the Vanguard site is a sell, then buy.
But, give it a try and see what happens. I don’t have two IRA’s with the same registration to check myself.
The Vanguard site blocks me from certain transfers, like from Roth to tIRA or my Roth to wife’s Roth.
I'm going to test this out with a smaller single share exchange between the two IRAs with the same fund being sold in IRA #1 and bought in IRA #2. I'll report back whether or not this transaction (1) shows as a "Transfer" and (2) impacts the contribution limit for IRA #2.
Statistics: Posted by jebmke — Wed Mar 20, 2024 10:10 am — Replies 12 — Views 367