For other issues, I too have experienced Vanguard's interminable hold time. It feels like a long, cold winter. It's enough to make a creature want to hibernate or at least to scurry elsewhere, but I'm wary. As I'm sure you know, traps abound in the financial backwoods. I haven't taken the bait yet, but one company might prove irresistible... Acorns.Ha! I love it!Chip Munk, thanks for sharing your kernels of... truth.When I've done this at Vanguard (convert at the prior business day's closing price) the following were true:Did you make the Roth conversion yourself online, or through customer service on the phone?I converted X number of shares of a Vanguard mutual fund from my IRA to my Roth IRA on 12/29/2023. When Vanguard calculated the dollar amount of the conversion, they used the closing price from 12/28/2023 instead of 12/29/2023. Since the market dropped on the 29th, the dollar amount on my 1099-R is higher than what it should be. That means I'll have to pay more taxes. I've been trying to get Vanguard to issue a corrected 1099-R since 1/5/2024. So far, no luck.
One of the representatives said it was a "system processing error." If so, this could potentially affect anyone buying or selling mutual funds that day. I'm wondering if anyone else has a similar problem and any luck in getting Vanguard to correct it.
Thanks.
At Vanguard doing it on the phone (while the market is open) apparently results in the prior days closing price being used.
viewtopic.php?p=7698542#p7698542
- I did it over the phone when the market was open
- I requested to convert a fixed dollar amount of a mutual fund in kind, for example $10,000 of VTSAX
I assume they convert at the prior business day's closing price so they can guarantee to convert the "exact" (within a few pennies) dollar value you requested. The reason it varies by a few pennies is because the number of shares calculated for the requested dollar amount must resolve to three decimal places. If it doesn't, then they must adjust your dollar amount to, say, $10,000.13 or whatever is necessary (they'll adjust downward if you prefer).
If you request to convert a specific number of shares or your entire position in a fund, they will convert at the current day's closing price. In those situations, the pending transaction will initially show the prior day's closing price but will get updated when the transaction is executed many hours after the market closes to that day's closing price.
I have no idea what happens if you call them when the market is closed or you are converting one fund to another rather than in kind.
Having squirreled away much in my traditional IRA and qualified accounts, I've converted some of my stored up cache to Roth. In the past I've specified the number of shares but might want to convert a fixed dollar amount in the future, in which case the helpful info you've shared will keep me from going nuts!
What will drive you nuts though is if you do this towards the end of December, to top off your Roth conversions for the year. The wait in the phone queue can be 45 minutes. I've done it a few times and made sure I had a beverage and lots of things to do on my laptop while I waited for a Vanguard CSR to pick up the call.
Statistics: Posted by RLH — Thu Mar 28, 2024 1:43 pm — Replies 25 — Views 2070