Hi, Newbie here, and I do plan to post a portfolio review once I pull all the information together soon. In the meantime, I'm trying to extricate from Fidelity Wealth Management accounts ASAP after 18 months and a terrible experience with them overall (I'll spare you the details). I'm trying to understand the tax implications that may arise from closing the accounts. They are to fully close/move:
Roth IRA - spouse --> going to Roth IRA self-managed w/Fidelity
Roth IRA - self --> going to Roth IRA self-managed w/Fidelity
Rollover IRA - self --> going to Rollover IRA self-managed w/Fidelity
Individual TOD - self --> going to Individual TOD self-managed w/Fidelity
So, short story...they are all going to the same type of account, but no longer under wealth management. Fidelity had us in nearly all proprietary funds, and states that we must sell everything and have the transfers go into the new accounts as cash. (I disagree with this because I remember reading that I could transfer in-kind for any funds as long as I stayed at Fidelity but I would not be able to buy any additional shares of proprietary funds. I could not find that in my original documents and they refused to send any of my own contracts/documents to me stating that it was my responsibility to have those documents. I did find a reddit post from Fidelity itself stating what I understood to be true, but they wouldn't budge. So I gave up....)
However, for the first three - Roths and Rollover - my understanding is that there should be no tax issue even with things going to "cash" because they will go from the same type of account as a non-taxable (non-reportable?) transfer (Fidelity refused to either confirm or deny my understanding). Is that what others understand as well?
For the Individual TOD (guessing this is considered just a normal brokerage, non-retirement account), I have to assume that I'll have some tax liability by selling everything that is proprietary into "cash." Is that correct? If so, I'd be grateful for any thoughts on how to limit or reduce that tax bill. Or even to understand/anticipate what that bill might be based on the value of what is sold to cash. I've read that I might be able to sell other stock at a loss to offset the gains, but so much of this feels foreign to me and I suspect I'm out of my depth with trying to "win" here...or even just walk away even. I may have to just suffer the hard (and expensive) lesson that Managed Accounts were a terrible idea in the first place.![:oops:]( "D'oh")
Note that I'm new to investing overall, which is one of the reasons I think I ended up in Wealth Management (I was told by the FA that sold me on it that I was "really bad at investing, and was failing my family"![:?]( "Confused")
), and so I apologize if I'm using any terms incorrectly. I'm reading a lot here and trying to learn, but it takes some time. Thanks in advance for your patience and for any guidance!
-----EDIT----- (as requested to include fund information, but I'm not sure if it will help or not since it has to all be sold, per Fidelity)
Individual TOD
Percent Of Account%Description (Symbol)(Expense Ratio)Total Gain/Loss Percent
0.88%ISHARES CORE US AGGREGATE BOND ETF(AGG)(0.03%) 6.09%
1.11%DIMENSIONAL ETF TRUST EMGR CRE EQT MNG (DFAE)(0.35%) 10.02%
1.16%ISHARES INC EMNG MKTS EQT (EMGF)(0.25%) 9.58%
1.42%FIDELITY TOTAL BOND ETF (FBND)(0.36%) 6.05%
8.81%STRATEGIC ADVISERS FID US TOTAL STOCK(FCTDX)(0.60%)33.70%
3.97%FIDELITY GROWTH COMPANY (FDGRX)(0.68%) 30.59%
1.77%FIDELITY DIVERSIFIED INTERNATIONAL (FDIVX)(0.62%) 16.86%
1.47%HELD IN MONEY MARKET (FDRXX**)(0.38%)
1.76%FIDELITY STOCK SELECTOR ALL CAP FD(FDSSX)(0.44%) 9.51%
0.35%FIDELITY ENHANCED LARGE CAP CORE ETF(FELC)(0.18%) 10.07%
3.55%FID SAI EMERGING MKT VALUE INDEX FUND(FEMVX)(0.22%) 22.53%
1.06%FIDELITY SAI EMERG MARKETS INDEX (FERGX)(0.15%)7.64%
7.34%STRATEGIC ADVISERS FID EMERGING MARKETS (FGOMX) (0.63%)11.21%
1.10%FIDELITY SAI INFLATION FOCUSED FD (FIFGX)(0.39%)0.63%
5.57%STRATEGIC ADVISERS FIDELITY CORE INCOME (FIWGX)(0.44%)11.00%
0.41%FIDELITY MINNESOTA MUNICIPAL INCOME(FIMIX)(0.47%) -0.37%
1.33%FIDELITY INTERNATIONAL VALUE FACTOR ETF (FIVA)(0.18%) 17.18%
1.87%FIDELITY INT'L VALUE (FIVLX)(0.95%) 11.65%
9.44%FIDELITY LARGE CAP STOCK (FLCSX)(0.79%) 22.24%
3.46%FIDELITY INTER MEDIATE MUNI INCOME(FLTMX)(0.36%) -0.30%
3.78%FIDELITY MAGELLAN (FMAGX)(0.47%) 33.91%
0.27%SCHWAB FUNDAMENTAL EM L/C (FNDE)(0.39%) 15.95%
0.41%FIDELITY OVERSEAS (FOSFX)(0.69%) 9.01%
1.11%FIDELITY QUALITY FACTOR ETF (FQAL)(0.15%) 10.95%
0.36%FIDELITY SAI TAX FREE BOND FUND (FSAJX)(0.34%) 0.19%
1.71%FID SAI INTNL LOW VOLATILITY INDEX FD(FSKLX)(0.17%) 10.70%
1.83%FIDELITY EXTENDED MARKET INDEX FUND(FSMAX)(0.04%) 24.00%
1.36%FIDELITY SAI MUNICIPAL INCOME FD (FSMNX)(0.35%) 1.01%
1.98%FIDELITY INTERNATL INDEX FUND (FSPSX)(0.04%) 13.03%
5.07%STRATEGIC ADVISERS FIDELITY INTL FUND(FUSIX)(0.63%)16.34%
0.99%FIDELITY SAI US TREASURY BOND INDEX(FUTBX)(0.05%)1.25%
1.84%FIDELITY VALUE FACTOR ETF (FVAL)(0.15%)27.65%
1.67%FIDELITY VALUE DISCOVERY (FVDFX)(0.69%)5.76%
5.5% FIDELITY 500 INDEX FUND (FXAIX)(0.02%)29.27%
1.39%FIDELITY ADVISOR INT'L GROWTH CL Z(FZAJX)(--) 22.86%
0.17%FIDELITY SAI LOW DURATION INCOME FUND(FZOLX)(0.21%)1.50%
1.22%ISHARES TR US TREAS BD ETF (GOVT)(0.05%)3.77%
0.58%SPDR NUVEEN BLOOMBERG HIGH YIELD MUNICIPAL BOND ETF(HYMB)(0.35%)2.13%
1.81%ISHARES CORE MSCI EMERGING MARKETS ETF (IEMG)(0.09%)15.88%
1.32%ISHARES S&P MID-CAP 400 VALUE ETF (IJJ)(0.18%)25.17%
1.62%ISHARES S&P MID-CAP 400 GROWTH ETF (IJK)(0.17%)31.69%
0.51%ISHARES CORE S&P SMALL-CAP E (IJR)(0.06%)5.55%
0.47%ISHARES S&P SMALL-CAP 600 VALUE ETF(IJS) (0.18%)25.80%
0.91%ISHARES TR S&P SMALL CAP 600 GROWTH ETF(IJT)(0.18%)9.95%
2.37%ISHARES TR MSCI USA QLT FCT (QUAL)(0.15%)32.41%
1.92%ISHARES TR MSCI USA MIN VOL (USMV)(0.15%)19.46%
Rollover IRA - Looking at them, I see that the three IRAs are actually identical. Same funds and very, very close percentages. So, one is listed here.
Percent Of AccountDescription(Symbol)(Expense Ratio)Total Gain/Loss Percent
60.93%STRATEGIC ADVISERS FID US TOTAL STOCK(FCTDX)(0.60%)34.64%
0.79%HELD IN MONEY MARKET(FDRXX**)(0.38%)
0.98%FIDELITY SAI EMERG MARKETS INDEX(FERGX)(0.15%)8.46%
7.48%STRATEGIC ADVISERS FID EMERGING MARKETS(FGOMX)(0.63%)11.28%
1.10%FIDELITY SAI INFLATION FOCUSED FD(FIFGX)(0.39%)0.60%
9.59%STRATEGIC ADVISERS FIDELITY CORE INCOME(FIWGX)(0.44%)11.24%
18.13%STRATEGIC ADVISERS FIDELITY INTL FUND(FUSIX)(0.63%)16.77%
0.99%FIDELITY SAI US TREASURY BOND INDEX(FUTBX)(0.05%)1.25%
Roth IRA - spouse --> going to Roth IRA self-managed w/Fidelity
Roth IRA - self --> going to Roth IRA self-managed w/Fidelity
Rollover IRA - self --> going to Rollover IRA self-managed w/Fidelity
Individual TOD - self --> going to Individual TOD self-managed w/Fidelity
So, short story...they are all going to the same type of account, but no longer under wealth management. Fidelity had us in nearly all proprietary funds, and states that we must sell everything and have the transfers go into the new accounts as cash. (I disagree with this because I remember reading that I could transfer in-kind for any funds as long as I stayed at Fidelity but I would not be able to buy any additional shares of proprietary funds. I could not find that in my original documents and they refused to send any of my own contracts/documents to me stating that it was my responsibility to have those documents. I did find a reddit post from Fidelity itself stating what I understood to be true, but they wouldn't budge. So I gave up....)
However, for the first three - Roths and Rollover - my understanding is that there should be no tax issue even with things going to "cash" because they will go from the same type of account as a non-taxable (non-reportable?) transfer (Fidelity refused to either confirm or deny my understanding). Is that what others understand as well?
For the Individual TOD (guessing this is considered just a normal brokerage, non-retirement account), I have to assume that I'll have some tax liability by selling everything that is proprietary into "cash." Is that correct? If so, I'd be grateful for any thoughts on how to limit or reduce that tax bill. Or even to understand/anticipate what that bill might be based on the value of what is sold to cash. I've read that I might be able to sell other stock at a loss to offset the gains, but so much of this feels foreign to me and I suspect I'm out of my depth with trying to "win" here...or even just walk away even. I may have to just suffer the hard (and expensive) lesson that Managed Accounts were a terrible idea in the first place.
Note that I'm new to investing overall, which is one of the reasons I think I ended up in Wealth Management (I was told by the FA that sold me on it that I was "really bad at investing, and was failing my family"
), and so I apologize if I'm using any terms incorrectly. I'm reading a lot here and trying to learn, but it takes some time. Thanks in advance for your patience and for any guidance!-----EDIT----- (as requested to include fund information, but I'm not sure if it will help or not since it has to all be sold, per Fidelity)
Individual TOD
Percent Of Account%Description (Symbol)(Expense Ratio)Total Gain/Loss Percent
0.88%ISHARES CORE US AGGREGATE BOND ETF(AGG)(0.03%) 6.09%
1.11%DIMENSIONAL ETF TRUST EMGR CRE EQT MNG (DFAE)(0.35%) 10.02%
1.16%ISHARES INC EMNG MKTS EQT (EMGF)(0.25%) 9.58%
1.42%FIDELITY TOTAL BOND ETF (FBND)(0.36%) 6.05%
8.81%STRATEGIC ADVISERS FID US TOTAL STOCK(FCTDX)(0.60%)33.70%
3.97%FIDELITY GROWTH COMPANY (FDGRX)(0.68%) 30.59%
1.77%FIDELITY DIVERSIFIED INTERNATIONAL (FDIVX)(0.62%) 16.86%
1.47%HELD IN MONEY MARKET (FDRXX**)(0.38%)
1.76%FIDELITY STOCK SELECTOR ALL CAP FD(FDSSX)(0.44%) 9.51%
0.35%FIDELITY ENHANCED LARGE CAP CORE ETF(FELC)(0.18%) 10.07%
3.55%FID SAI EMERGING MKT VALUE INDEX FUND(FEMVX)(0.22%) 22.53%
1.06%FIDELITY SAI EMERG MARKETS INDEX (FERGX)(0.15%)7.64%
7.34%STRATEGIC ADVISERS FID EMERGING MARKETS (FGOMX) (0.63%)11.21%
1.10%FIDELITY SAI INFLATION FOCUSED FD (FIFGX)(0.39%)0.63%
5.57%STRATEGIC ADVISERS FIDELITY CORE INCOME (FIWGX)(0.44%)11.00%
0.41%FIDELITY MINNESOTA MUNICIPAL INCOME(FIMIX)(0.47%) -0.37%
1.33%FIDELITY INTERNATIONAL VALUE FACTOR ETF (FIVA)(0.18%) 17.18%
1.87%FIDELITY INT'L VALUE (FIVLX)(0.95%) 11.65%
9.44%FIDELITY LARGE CAP STOCK (FLCSX)(0.79%) 22.24%
3.46%FIDELITY INTER MEDIATE MUNI INCOME(FLTMX)(0.36%) -0.30%
3.78%FIDELITY MAGELLAN (FMAGX)(0.47%) 33.91%
0.27%SCHWAB FUNDAMENTAL EM L/C (FNDE)(0.39%) 15.95%
0.41%FIDELITY OVERSEAS (FOSFX)(0.69%) 9.01%
1.11%FIDELITY QUALITY FACTOR ETF (FQAL)(0.15%) 10.95%
0.36%FIDELITY SAI TAX FREE BOND FUND (FSAJX)(0.34%) 0.19%
1.71%FID SAI INTNL LOW VOLATILITY INDEX FD(FSKLX)(0.17%) 10.70%
1.83%FIDELITY EXTENDED MARKET INDEX FUND(FSMAX)(0.04%) 24.00%
1.36%FIDELITY SAI MUNICIPAL INCOME FD (FSMNX)(0.35%) 1.01%
1.98%FIDELITY INTERNATL INDEX FUND (FSPSX)(0.04%) 13.03%
5.07%STRATEGIC ADVISERS FIDELITY INTL FUND(FUSIX)(0.63%)16.34%
0.99%FIDELITY SAI US TREASURY BOND INDEX(FUTBX)(0.05%)1.25%
1.84%FIDELITY VALUE FACTOR ETF (FVAL)(0.15%)27.65%
1.67%FIDELITY VALUE DISCOVERY (FVDFX)(0.69%)5.76%
5.5% FIDELITY 500 INDEX FUND (FXAIX)(0.02%)29.27%
1.39%FIDELITY ADVISOR INT'L GROWTH CL Z(FZAJX)(--) 22.86%
0.17%FIDELITY SAI LOW DURATION INCOME FUND(FZOLX)(0.21%)1.50%
1.22%ISHARES TR US TREAS BD ETF (GOVT)(0.05%)3.77%
0.58%SPDR NUVEEN BLOOMBERG HIGH YIELD MUNICIPAL BOND ETF(HYMB)(0.35%)2.13%
1.81%ISHARES CORE MSCI EMERGING MARKETS ETF (IEMG)(0.09%)15.88%
1.32%ISHARES S&P MID-CAP 400 VALUE ETF (IJJ)(0.18%)25.17%
1.62%ISHARES S&P MID-CAP 400 GROWTH ETF (IJK)(0.17%)31.69%
0.51%ISHARES CORE S&P SMALL-CAP E (IJR)(0.06%)5.55%
0.47%ISHARES S&P SMALL-CAP 600 VALUE ETF(IJS) (0.18%)25.80%
0.91%ISHARES TR S&P SMALL CAP 600 GROWTH ETF(IJT)(0.18%)9.95%
2.37%ISHARES TR MSCI USA QLT FCT (QUAL)(0.15%)32.41%
1.92%ISHARES TR MSCI USA MIN VOL (USMV)(0.15%)19.46%
Rollover IRA - Looking at them, I see that the three IRAs are actually identical. Same funds and very, very close percentages. So, one is listed here.
Percent Of AccountDescription(Symbol)(Expense Ratio)Total Gain/Loss Percent
60.93%STRATEGIC ADVISERS FID US TOTAL STOCK(FCTDX)(0.60%)34.64%
0.79%HELD IN MONEY MARKET(FDRXX**)(0.38%)
0.98%FIDELITY SAI EMERG MARKETS INDEX(FERGX)(0.15%)8.46%
7.48%STRATEGIC ADVISERS FID EMERGING MARKETS(FGOMX)(0.63%)11.28%
1.10%FIDELITY SAI INFLATION FOCUSED FD(FIFGX)(0.39%)0.60%
9.59%STRATEGIC ADVISERS FIDELITY CORE INCOME(FIWGX)(0.44%)11.24%
18.13%STRATEGIC ADVISERS FIDELITY INTL FUND(FUSIX)(0.63%)16.77%
0.99%FIDELITY SAI US TREASURY BOND INDEX(FUTBX)(0.05%)1.25%
Statistics: Posted by MamaMN — Thu Jul 18, 2024 7:20 pm — Replies 8 — Views 661