Hello,
An Inherited IRA. My Dad had in Vanguard. Does that mean I will change ownership and continue with Vanguard. Or can it be moved to my brokerage which is Fidelity. If so, can it be moved in kind until I re-balance my portfolio.
Thanks
Sal
Salvee: [I] “Inherited IRA [m]y Dad had in Vanguard. Does that mean I will change ownership and continue with Vanguard. Or can it be moved to my brokerage which is Fidelity. If so, can it be moved in kind until I re-balance my portfolio.”
Sorry for your loss; my condolences to you and your family.
Much depends upon when your father died and whether he had started (or was obligated to start) his RMDs from the account at the time of his death.
Deaths that occurred in 2019 or earlier have one set of rules; deaths that occurred in 2020 or later are governed by the SECURE act and have a different set of rules.
In addition the inherited account is never really held in your name; an inherited account is still “Father’s account, deceased, for the benefit of Salvee” or somethin similar, and should never be “Salveee’s IRA” or commingled with your personal IRA(s).
See https://www.schwab.com/ira/inherited-ira/withdrawal-rules for a decent summary.
Short answers to you actual questions you can move from Vanguard to Fidelity and it generally can be done in kind if none of the holdings are proprietary to Vanguard (as opposed to publicly traded).
Regards, JAFO
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Rick,
Thank you, and the link to Schwab helps explain a lot.
Sal
Salvee: “Thank you, and the link to Schwab helps explain a lot.”
You are welcome.
Good luck.
Regards, JAFO
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There is no reason that the account needs to be transferred, personally Vanguard is the best place to find low cost ETF’s. Fees matter and since Fidelity is privately owned they tend to have much higher fees associated with their product. Fidelity does have some index funds that they brought down to competitive fees but on the whole they are more expensive. Don’t trust me compare some different non indexed funds.
I use my inherited IRA RMD’s, to fund my children’s Roth and my grandchild’s UTMA’s.
Best wishes,
Zraki
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Vanguard is the best place to find low cost ETF’s. Fees matter and since Fidelity is privately owned they tend to have much higher fees associated with their product.
Vanguard ETFs can be purchased through brokerages with no commission. I have taxable, trad IRA, SEP and Roth at Fidelity with no fees and was actually given bonuses to move the trad IRA there. I have Trad IRA, Roth and taxable at Schwab with no fees and did get a bonus for the trad IRA there.
This is true as of today. I prefer the Fidelity web site at the moment. I had money at Vanguard for year and left quite awhile ago because the service went downhill - this was probably about 10 years ago.
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