Roth IRA sale Question

    Hello,

    I'm looking at a friends Roth IRA because they asked me for help. They are young. While looking at the positions, I noticed 9000 units in VMFXX which I personally don't know much about, but after looking into it a bit it essentially seems fairly liquid and that it is basically acting as a form of high-yield savings account.

    After discussing with my friend, we are concluding that that money/position would be better off in an actual index fund to grow with the market over the next 20+ years, instead of gaining 2% dividend every month.

    My question is, because it is in a Roth IRA, are we free to sell that position and reinvest that into a different fund without paying a penalty, assuming the money still stays in the actual Roth account?

    Will they have to pay taxes on the VMFXX sale?

    Thanks everybody for the help!

    Roth IRA Question selling VMFXX
    byu/monster1551 ininvesting



    Posted by monster1551

    Leave A Reply
    Share via
    Share via