[USER]

Advice please – my husband’s Roth ($67,000) and tIRA ($140,000) are both with Sammons Retirement Solutions.

I just read The Simple Path to Wealth and they do not offer a VTSAX equivalent so I would like to move all this money to Vanguard.

Do we have to withdraw, pay taxes, and then open accounts with Vanguard?

I’m assuming there’s a way to do this without taxes but I’m new to this and don’t want to risk making a mistake.

Also worried there could be fees involved, which he’s already paying too many of.

Thank you.

[Megan]

Rollovers to like accounts: Roth retirement to Roth retirement or Traditional retirement to traditional retirement are not a taxable event.

[Christopher]

Before jumping on the vanguard/vtsax bandwagon, make sure you keep in mind the book is almost 10 years old now, and some guidance is stale.

You should probably opt for VTI (it’s a bit cheaper than vtsax and easier to move around if desired).

Vti also allows you to use a brokerage other than vanguard, which may have perks that are useful for you.

Fidelity offers a nice HSA which may pair well with your other accounts.

Schwab has a nice account for international travel. Etc.

Don’t withdraw the funds! Liquidate your holdings so you have cash and then have wherever you decide request a transfer.

A withdraw will start a clock on getting the money into a new account before penalties and taxes are owed, while a custodial transfer won’t have that risk.

Liquidate because cash is easy to move and you won’t risk selling fees at the destination if they provide a weird fund.

There may be fees for the transfer, sometimes the receiver will reimburse you.

[Author]

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