Can I move funds in a ROTH IRA from one institution to another without incurring a sale or penalty?

I have funds in a Putnam IRA. These funds are corrupt and badly managed with high fees. Can I move them (for example, to Vanguard) without incurring a taxable distribution?

Your investment is in an IRA so there won't be a taxable distribution (unless you pull the money out of the investment). Sometimes there can be account closure fees that mutual funds may charge or the financial institution you are working with. If you are in a bad investment, it can be worth any fee to move into a stronger investment. Look for long-term results rather than just the past 3 or 5 years. Good Luck.

i believe you can but better check with your institution

Yes you can. I have done this before. Just make sure that you have all of the paperwork work filled out properly. Then make sure that the funds go from one institution to another. It is important that you do not take possession of these funds during this process.

You move the funds in your Roth account from where it is now directly to a new ROTH account any time you want. If you take a distribution from the ROTH put in your bank and then within 60 days put it into a new ROTH account you are prohibited from moving that ROTH account again for 12 months.
If you take the funds and don't get to transfer to the new ROTH account accomplished within the 60 days it would become taxable to you.

Yes. There should not be any taxes when you transfer assets from one IRA to another IRA.

If you open a brokerage account with Vanguard, they should be able to accept the Putnam mutual funds. If they won't accept the Putnam funds, then you might want to just sell the Putnam funds and transfer the proceeds (cash) to a new IRA.

When you open your account with Vanguard (for example) they will provide you a form to fill out to execute the transfer. Fill the form out, send it back to Vanguard, and they will handle the transfer for you. Putnam will charge you a fee for the transfer. Normally about $35 to $50. There will be not hastle and no penalty. Vanguard will not charge anything.

take another look at some of putnam's funds via www.morningstar.com

they will have some good performers. You have or will have paid a commission already with them. If you move them you may have other costs involved.

You have been burned, but they are doing a heck of a lot to be the best at corporate governance.