I transferred my Roth from Scottrade to Vanguard because of Scottrade's new Vanguard transaction fees and because those are the only funds I use. Scottrade made me liquidate my funds before transferring them to Vanguard. I had four funds, resulting in a $68 (17*4) fee to Scottrade. Should I have been required to do that? I don't see why. You're just changing the custodian of the Roth, that's all. Vanguard is now becoming the custodian. They are going to be the ones holding the Roth account.The more I think about this, the stranger it gets. Did Scottrade send the cash proceeds from the sale of the funds to Vanguard? Did the funds then have to be re-purchased?You're right to refer to this as a transfer. But I think the funds themselves should have been transferred, not cash. (And the cash was certainly not a contribution, right?)Funny thing ... I've always had my Roth at Vanguard and I used to wish that I had it at Scottrade because Vanguard charged for the low balance in my Roth; they also had an additional fee for the low balance in a fund (I only had one fund, VFINX). So I got hit with two low balance fees until the account got sufficiently large. I can't remember exactly how the rules work, but it seems to me that if your four funds are sufficiently small, Vanguard may hit you with four low-balance fees--and then, if the overall Roth is too small, there's another fee on top of that. --SirTas
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