I currently have a Roth IRA with TD Ameritrade… They charge $17/transaction for the target date index fund I have, so I want to open a Roth IRA with Vanguard and invest monthly without a fee. Is there a way to transfer my current Roth IRA funds to my new Roth IRA that I plan to open (without it costing a small fortune)? Or will I just have to leave it and have two Roth IRA accounts?
Vanguard should have information on how to roll it over to the new IRA. It may be a 1 time fee I think of $75.
Heads up you will have to sell your investments before transferring.
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Hi Laura,
You can do an “in kind” transfer which means you don’t have to sell your assets when moving them from one brokerage to another.
See this link here: Common questions about account transfers | Vanguard
May I ask if this is happening because TD does not offer their own target date index funds? @KarlaMickelson is trying to buy a TDIF with them!
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I have FXAIX (Fidelity 500 Index Fund) through Ameritrade (that costs $17 per transaction). Sorry, I misspoke when I said it was a target date fund. I’m not aware of any target date funds through Ameritrade. I’m pretty sure I had searched for one, but settled for FXAIX when I couldn’t find one.
@Laura_V check out this post, says that TD offers free ETF trades. Definitely stop paying that fee, though there may be a way to stick with TD Amer if you don’t want to switch over… How to avoid transaction fees on mutual funds – Personal Finance Club
This post has a handy listing of ETF’s to look for:
Good luck!