ROTH Conversion from/to different mutual funds
I have both traditional and ROTH accounts with the same fund company (Vanguard). Is that permissible to convert, say, from Vanguard 500 Index fund to Vanguard Total Stock Market Index fund in ROTH? Thanks. Lin Huang
Permalink Submitted by Alan - IRA critic on Sat, 2018-07-07 00:50
Yes, you could exchange the 500 fund for the total market fund either before or after the conversion. It does not matter which order you use. Another option is to redeem the 500 to the federal MM fund just before converting, then converting the cash if you want to control the exact amount of the conversion that will be reported on your 1099R. You would then purchase the total market fund right away in the Roth account.
Permalink Submitted by Francoise Mauduit on Sun, 2018-07-08 21:34
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