Can I convert my VTSAX investment to VTI in a taxable brokerage account without triggering tax consequences?
Resume IA
L'auteur souhaite convertir son investissement en VTSAX en VTI sans déclencher de conséquences fiscales, et demande si cela est possible sans vendre l'ensemble de son portefeuille
Conseil cle
Il est possible de convertir VTSAX en VTI sans réaliser de gains en capital, en utilisant l'option de conversion proposée par Vanguard
- Montant max
- 300k€
A couple of years ago, I inherited some money, which I put in a Vanguard brokerage account. It's 100% in VTSAX because at the time I didn't understand the difference between VTSAX and VTI. I do not and will never add money to this brokerage account - it was a one-time lump sum worth about $300k now. All of my ongoing contributions go into a tax-advantaged account elsewhere. I'd like to know if I can change it all from VTSAX to VTI without having to sell the entire $300k and pay capital gains tax on it. Is this possible? I can't ask Vanguard because any such questions are met with "We do not give tax advice." Also, same question, but what if I convert the VTSAX to VT?
“Vanguard offers the option to convert selected mutual funds with paired ETF share classes from the mutual fund to the ETF without selling and causing you to realize taxable gains. This includes VTSAX/VTI. I did the conversion myself a few years back and I can confirm that it both doesn’t cause you to have a taxable event and that the basis from the tax lots of the mutual funds can carry over to the ETF on an individual basis. Back when I did it the only way to accomplish this was to call and talk to a Vanguard rep, but I believe that they have added the option to do it online now. (This all assumes that you’re holding the funds in a Vanguard account. If, for some reason, you had purchased VTSAX another brokerage I don’t think this would work the same way)”