I have one last account at Vanguard that’s on the old mutual fund platform and it’s our joint taxable account. I was finally going to switch over to the brokerage platform. The only thing in the account is a bunch of VTSAX. I’ve also been thinking about finally TLH the around $5k in losses. We have no VTSAX in any other account it’s all in Target Retirement funds.
But then I thought about if the account transfer would cause a wash sell event. AFAIK the upgrade process opens a new account, transfers everything over in kind, and then closes the old account. Does that in kind transfer reset the 30 day clock?
My gut thinks no because the basis transfer with the security.
I know I can just keep it a mutual fund account, but now I’m interested in the answer.
A different TLH question: Vanguard account upgrades
Re: A different TLH question: Vanguard account upgrades
I guess the other question is that’s how they do it, right? There’s nothing out there other than trust us to do it right.
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Re: A different TLH question: Vanguard account upgrades
And the fact that if Vanguard forced you to sell when moving from the mutual fund to the brokerage platform, that would force taxation of any unrealized capital gains and likely lead (or have led) to a huge exodus from Vanguard for doing something so client-antagonistic. So no, switching platforms does not require a sale.
Re: A different TLH question: Vanguard account upgrades
Oh yea. Should have thought out my mental exercise one step more. Thanks for the push.
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Re: A different TLH question: Vanguard account upgrades
Your holdings in mutual funds or etfs can not only be transferred in kind to different accounts within the same custodian but to other custodians without affecting the cost basis or generating any capital gains or losses.
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Re: A different TLH question: Vanguard account upgrades
It is exactly like transferring an account from brokerage A to B in-kind. It is NOT a sale. In this case, it's an in-kind transfer from Vanguard Mutual Funds (a separate legal entity) to Vanguard Brokerage. I have done it with all our accounts containing large number of mutual funds and individual stocks. Everything transferred over correctly including cost basis.
Yes it works. I assume that question was a genuine one and not a sarcastic one.I guess the other question is that’s how they do it, right? There’s nothing out there other than trust us to do it right.
Boglesmind