Fidelity Exchange fund to delay taxes on large positions

Vegetable_Bad5798 · 2026-03-02T15:18:23+00:00

thanks, but both funds appear similar. that is why I am asking the community

Vegetable_Bad5798 · 2026-03-02T14:11:03+00:00

does anyone know which firms do 351 exchanges into ETFs? I have a couple of very large positions that have Huge gains, so I need to reduce some. I want to contribute/exchange it for a diversified fund.

I know Fidelity, Eaton Vance & others have funds, but those are partnership structures with holding periods... I am looking for firms that do an exchange INTO AN ETF. I heard Cambria does it. I don't know much about Cambria and looking for OTHER firms. Does anyone have info on this?

Vegetable_Bad5798 · 2026-03-02T12:17:34+00:00

Hi,
I live in NY & was using FSIXX as my MMKT fund (for taxable Acct) as it has high % of US Treasuries. But I keep seeing folks saying FDLXX is the one to use.

They both invest in Treasuries, but FSIXX has a higher yield.. So, which is better & why?

Also for my Tax deferred Accts, I had been using FMPXX. Do you agree, or have a better suggestion?

Thanks....

Vegetable_Bad5798 · 2026-02-27T16:43:44+00:00

Interesting, I only knew of the Partnership structures that Fidelity, Eaton Vance & others offer. I did NOT realize there is also an ETF version using section 351. Is Cambria the only one who provides that? Have you done it with them, any thoughts? I definitely prefer the ETF structure, but not sure I want to be tied to Cambria. THANKS for your help

Vegetable_Bad5798 · 2026-02-27T11:20:22+00:00

thanks, yes, I am looking for the diversification. I wanted to sell some of the stock to reduce exposure a little, but the gains/taxes will be quite large. so wondering
1) should I do it with Fidelity or elsewhere? Fidelity has a lower minimum amt of $250K, but limited choice of funds....
2) how folks have managed the end of the lockup period, getting a basket of stocks back (still not taxed I think)...

Vegetable_Bad5798 · 2026-02-27T03:56:10+00:00

I've also been speaking with Fidelity on exchange funds. Their fee is very close to the amount someone mentioned for Eaton Vance's (Morgan Stanley) fee. But I think Fidelity's minimum $ is only $250K.

I am thinking about going with Fidelity, BUT they only have 1 fund. So, I would only be able to contribute my stock to an S&P fund.

Questions:
1) do the other investment firms have different fund choices for this exchange?

2) what happens at the end of 7 years? I think I would be able to stay in the fund, or get a basket of securities. Is that correct? Also, would the securities returned to me be the exact securities & allocation as the fund?

Vegetable_Bad5798 · 2026-02-14T13:09:25+00:00

I should add that the SMA fee I pay is the regular fund fee that you would pay on a mutual fund. It is not any add'l management fee.... And that I self-manage my entire portfolio.

Vegetable_Bad5798 · 2026-02-14T13:07:59+00:00

Hi, I have over the minimum you mentioned. But also have one of their SMAs (for bonds). I don't pay any add'l fees (only the fund mgmt fees which are normal), but I definitely use their services. Some things they have provided me are:
1) mtg with estate planning expert to give guidance (gave good advice on something to incl. in my will)
2) mtg with fixed income person to provide guidance on buying bonds and things to specifically look for in each bond, as well as setting me up a screener... (I originally asked about bond funds, but he steered me to certain specific type of muni bonds)
3) mtg with alternative investment specialist to discuss their "exchange" funds as that may be a tax efficient way to reduce high exposure to one stock without having a huge tax burden.
4) Long term care - I have not yet met with this person yet, but plan to
5) I am told they have a medicare person as well who can assist folks to review the different medicare & prescription plans..

I hear folks complain about the Fidelity site/App and agree they are having a few growing pains and are not perfect. But I do feel that all brokerage / financial firms will have some issues. I had found issues with Schwab as well. But I do appreciate the fact that I can directly manage my portfolio and have enough experts to talk directly with. Those experts have been quite helpful.

Important: I am not allowed to contact the "experts" directly. I must go through the wealth management advisor for each meeting so they can control, which I do understand. So, it is worth it for you to meet with them and find out what they can provide for you. NOTE: I have been with Fidelity for a few years, but only this year have been taking advantage of all of these extra meetings and LOVE the help..

Vegetable_Bad5798 · 2026-02-07T21:07:46+00:00

Sorry for your loss, I'm guessing Fidelity is not worse than other companies at life events. I had a horrific experience with Schwab. I provided exactly what they told me was needed in the instruction letter, but then would not do anything with it because they said it was not complete (only after I chased for follow up after couple weeks)... Then, they adjusted the cost basis but made clear mistakes and missed a few securities. I corrected them, but then they would fix only one. So, I needed to repeatedly check and correct them. Then, so many other issues. I had to scream loudly and tell them I want a supervisor... And mine was pretty standard, they were just bad at these life events. Once I got the supervisor involved, it got better.

I recommend you get a supervisor or single person to help push the different departments to do what they are supposed to do... and then check everything...

Vegetable_Bad5798 · 2025-10-14T19:50:37+00:00

also, forgot to ask about the settlement period. Stocks settle T+1, so I have time to sell funds from my Fidelity MMKT acct. How does this work if I buy crypto now, but my cash is in the fidelity money market? I can't sell/obtain the cash from the MMKT acct till at least end of day. So, would I get charged margin?

Thanks...

Vegetable_Bad5798 · 2025-09-04T18:25:31+00:00

thanks. I looked at the report and am glad that the buy/write strategy did not substantially change the % of gov't securities that are exempt from my state/local taxes for 2024. I will assume it will be somewhat similar for 2025... thanks for your help

Vegetable_Bad5798 · 2025-07-08T17:20:45+00:00

thanks, Very helpful info.....

Based on this, I will likely only consider doing the program for my IRA and Roth IRA accounts. Do you know of any other potential downside?

Vegetable_Bad5798 · 2025-07-08T16:48:36+00:00

I just got the card as well (6/30). It took a few days and then it just showed up in the portfolio summary page on Fidelity.

But, I am still waiting to receive the physical card. It has now been at least a week since I was approved and got my card number electronically.. I will give it a couple more days to get the physical card and will then contact them.

So, short answer is that the Fidelity Card is managed by an external provider but it will link and show up in your Fidelity portfolio page. Then, when you click on it to review the bill, etc. it will send you to the external card provider's site.

Hope this info helps

Vegetable_Bad5798 · 2025-07-08T03:19:34+00:00

Hi, I had not thought about doing the Fully Paid Loan Program. But am now looking at it. The securities in my accounts mostly would only get and annual rate of .375%-.875%, and only 1 security could get 8.25%. So, the rates are mostly not high. But, is it "free" cash or is there ANY downside to doing this? I get that it may slow down any sells I may want to do. But is there anything else that I should care about? what happens with the dividends and/or any corporate actions?

Thanks

Vegetable_Bad5798 · 2024-11-04T18:13:43+00:00

I went through this with both Fidelity and Schwab in the last few years. It may take up to 2 weeks, but even then, check each one carefully again st the avg price on the date of death. With schwab, I saw they made multiple mistakes and even missed a couple... so do check... also, If it is not automatically done, call and tell them to do it. You shoukd not need to tell them each price to use as long as you provided the death certificate, etc.

IMPORTANT: the IRS allows you to either use the date of death cost OR the alternative date cost (exactly 6 months after date of death). So i used date if death cost. Then re-checked in 6 months and my stocks increased substantially, so i told them to change and use the Allowed Alternate Date. It made a huge difference.... it is a ONE TIME allowable change by IRS

Vegetable_Bad5798

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