Transfer Mutual Fund Assets
I want to transfer a mutual fund account assets directly into a different mutual fund account held at a different financial institution. For example, a transfer from Fidelity to Dodge & Cox. Is this a taxable event?
Terry Says
Likely, no fund company will accept the shares of the currently owned mutual funds. You will have to sell and transfer cash. If the funds are not owned inside an IRA, yes this is a taxable event.
If it is an IRA account, the money should be “rolled” directly into a new IRA at the new custodian.
And pardon my asking, but why would you transfer anything from a Fidelity account to the costly Dodge and Cox account?? I’m guessing an “advisor” has made a recommendation that will generate commissions for him/her — and not much better investments for YOU!
