<prompt> Human: My wife and I mid-30s have our investments spread through a variety of accounts Roth IRAs, 403bs, taxable, 529, etc. I recently put our portfolio through the Morningstar X-ray and saw that our asset allocation is out of whack by 10, so I would like to rebalance to a more appropriate mix about 30 bonds70 stocks. This would mean moving some amount out of stocks and into bonds. I would like the greatest tax-efficiency when doing this, so Im wondering if I should make all of my exchanges in my Roth IRA I have only VBMFX and VTSMX in there. As I understand it, any capital gains from selling VTSMX in my Roth IRA would have no tax liability. I have considered trying to achieve this rebalance using new contributions into VBMFX without having to sell any VTSMX, but I think it would take too long. Thanks for your help!  <response>: Transactions within your Roth IRA will not incur any capital gains. 