Question: If a Fidelity mutual fund held at Vanguard in an IRA is sold on a Monday at 3:45pm, when do those funds officially settle such that I can transfer the cash to another account?
Background:
We transferred my wife's IRA from Fidelity to Vanguard recently, in kind, such that she ended up with a Fidelity mutual fund at Vanguard.
We wanted to sell that Fidelity fund and buy something else, and an exchange is only permitted between the same fund families. So on Monday at about 3:45 we sold the Fidelity mutual fund.
As of 4:41 Wednesday I can see the credits from the sale and can purchase vanguard mutual funds. But I cannot transfer that cash. E.g. Vanguard will allow me to trade with those credits within the IRA but those funds have not yet settled and thus I cannot move them between accounts.
But if Monday was the "T", wouldn't Tuesday have been the "+1"? And if not, it's now Wednesday and the markets are closed but the shares still don't appear in the settlement fund.
Practically speaking, it's not an issue for me. But I'm curious to get some education on why the funds are not yet settled.
Background:
We transferred my wife's IRA from Fidelity to Vanguard recently, in kind, such that she ended up with a Fidelity mutual fund at Vanguard.
We wanted to sell that Fidelity fund and buy something else, and an exchange is only permitted between the same fund families. So on Monday at about 3:45 we sold the Fidelity mutual fund.
As of 4:41 Wednesday I can see the credits from the sale and can purchase vanguard mutual funds. But I cannot transfer that cash. E.g. Vanguard will allow me to trade with those credits within the IRA but those funds have not yet settled and thus I cannot move them between accounts.
But if Monday was the "T", wouldn't Tuesday have been the "+1"? And if not, it's now Wednesday and the markets are closed but the shares still don't appear in the settlement fund.
Practically speaking, it's not an issue for me. But I'm curious to get some education on why the funds are not yet settled.
Statistics: Posted by neurosphere — Wed Sep 18, 2024 3:49 pm — Replies 5 — Views 203