What are the tax implications (if any) for exchanging one fund for another in a tax sheltered account (Roth IRA)? e.g. Changing from, say, a Life Strategy Fund to a Target Retirement fund.


There are no tax consequences when you exchange funds in a tax-deferred account.

  • 3
    If you sold that same fund for a loss 30 days before or after the IRA purchase in an external account for a loss, the IRA purchase creates a wash sale. Really – JTP - Apologise to Monica Mar 12 '14 at 2:39
  • @JoeTaxpayer I guess I forgot that part. It really is a weird rule..... – Dilip Sarwate Mar 12 '14 at 3:15

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