Move part of Bond fund from taxable to Var Annunity
I ran out of space in my tax deferred accounts for my bond funds and therefore have 5% of my total portfolio in my taxable account in Total Bond Idx. (5% vanguard total bond market index fund admiral shares (VBTLX) (0.07%)
Should I change my current allocation in my variable annuity (1.7% VVA- Ttl Stock Market Idx (0.48%), 0.7% VVA- Total Bond Market Idx (0.46%)) to 100% Total Bond Market Idx and exchange the same amount in my taxable from Total Bond to Total Stock Martket Idx?
This way the Total Stock Market Idx can have capital gains treatment in my taxable and the Bond Fund tax remains the same as ordinary Income in the variable annunity, all without changing my overall Asset Allocation. There is a small short term capital gain on the bond fund in my taxable, but nothing significant.
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