So, I recently moved my Roth IRA from Fidelity to Vanguard. I have 36,302 in a Fidelity Freedom 2040 fund. I wanted to sell it and buy Vanguard's 2040 fund, as the expense ratio is much better. I will wind up saving $5,000 in fees over the next 10 years if my math is right.
Do I have to pay capital gains tax if I sell it all and use the funds to buy the Vanguard fund? My money wouldn't leave the Vanguard account. If I do have to pay a tax, is it worth it? I have no idea. Is it really bad to sell off early like this?
My other option is just to invest future money in Vanguard funds and leave the Fidelity ones....