In my experience, Vanguard's "Frequent Trading restrictions" apply only within a certain account, and do not extend into other account types.Does anyone have issues with selling large amount like $40000 from rollover IRA VTSAX account to settlement fund in a rollover IRA account in Vanguard in order to use Roth conversion withholding method? I got red warning box about Vanguard Frequent Trading restrictions when selling $ 40000 to settlement fund. However, I googled and I was told Vanguard's frequent trading policy for mutual funds has an exemption for trades under $10,000. I wanted to make an indirect Roth conversion in ROTH IRA account for VTSAX when step one finishes. My question is---- can I still use my bank money to buy VTSAX in Roth IRA account later? Does anyone have this experience when you do Roth conversion withholdings? Many thanks!
In other words, I can liquidate, say, $25,000 of Vanguard Total International Fund in my traditional IRA account in order to fund a Roth conversion with, say, 90% withholding. Shortly thereafter, I can transfer $22,500, representing the withheld amount, from my checking account to my Roth IRA and use the transfer to purchase the same fund in my Roth IRA. I don't get a "frequent trading restriction" message in my Roth IRA when I purchase Total International Fund there.
Statistics: Posted by Stinky — Sat Dec 20, 2025 5:37 am — Replies 237 — Views 35269