My wife recently transferred her Roth IRA from NW Mutual to a Schwab Roth IRA to avoid certain fees and give her more control over her investments, among other reasons that are irrelevant to this question.
Her transferred Roth IRA from NW Mutual consisted of about $50K worth of shares from one mutual fund. Upon completing the Roth IRA transfer from NW Mutual to the Schwab Roth IRA, she tried to purchase some of those same mutual fund shares, but we learned that "buy orders are not currently being accepted on this fund" within Schwab. I'm thinking she should have sold her shares through NW Mutual, transferred the cash to Schwab, and then re-purchased through Schwab.
Option 1 (this seems to be the worst option). Can my wife sell all of these shares within Schwab and re-allocate that cash to a separate but tradeable stock through her Schwab Roth IRA? Though, if buy orders aren't being accepted through Schwab on this mutual fund, I'm not sure selling these mutual fund shares through Schwab is even an option. Hence my above conclusion that she should have sold through NW Mutual before transferring the Roth IRA cash to Schwab. Also, I believe triggering this Option 1 would create issues surrounding the amount she can contribute in a single year, in addition to tax consequences.
OR
Option 2. There is a "swap funds" feature that I need to investigate and better understand, which seems to be the right way to go about this, or at least the better option. But again, if "buy orders are not being accepted" - I'm not sure that's possible under the "swap." Granted, we'd be "swapping" which may be allowed and considered a different transaction all together.
I presume it would be best to "swap." Though, I'm not sure she can swap portions of the mutual fund into multiple new investments, for instance 50% into a different mutual fund and 50% into an equity/stock.
All this said - I should probably just talk to a Schwab representative or a financial professional. Though, any preliminary understanding I can gain here is most appreciated.