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!