Q2004 Old Retirement Accounts


S

scott

Hi,

I read my Quicken 2004 for Dummies and now I feel dumber! I am trying to
input my old account info and keep my retirement accounts and other real
estate and investment accounts documented in Quicken 2004. I hoped the book
would explain how to handle this but it didn't.

I have 4 different retirement accounts. One of my old employer's 401K
account was managed by XYZ Investment and I had shares in mutual fund 1, 2
and 3. I kept track of the cost basis by keeping the paper quarterly
statements from back when the shares were purchased. A few years later the
company decide to change to ABC Investment company and moved the shares into
comparable funds that this company's offers. So each old fund account was
closed and rolled to the new fund. I still keep track of the quarterly
statements so I know where I stand in each funds.

How do I account for the change-over of the funds from the old fund accounts
that are essentially closed now to the current ones that I am now
monitoring? I cannot just close the account with a zero balance because I
need to track the original share basis.

Thanks,
Scott Carter
Honolulu Hawaii
 
Ad

Advertisements

R

Randy Stevens

Scott,

Tracking the cost basis is somewhat irrelevant for a 401K account,
especially for tax purposes.

Also, when your company's 401K management changes, it's like starting over.
For example, even if you transfer X dollars from Management A's large cap
fund to Management B's large cap fund, the two fund might perform very
differently.

Nevertheless, there are several ways to handle your situation....

1. I assume you have a Quicken account called something like "Company
401K". Now since you did not change companys, but your company changed
their 401K management, you can simply keep the "Company 401K" Quicken
account. When you get your statement showing what transferred from
Management A to Management B, you can simply "Update 401(k) Holdings" to
show a transfer between different funds. Quicken does not know that these
funds are held by different management companys, it simply knows that it is
in your "Company 401K" account.

2. This might be similar to #1. (I generally avoid using the "Update
401(k) Holdings" wizard, because it is a bit cumbersome for my purposes.)
Keep your "Company 401K" Quicken account. Sell all the shares from
Managment A using all of Management A's unit prices and funds; i.e., convert
all the shares to cash. This cash amount is what was transferred between
the companies. (Watch them! Sometimes they will cheat you out of a few
pennies!) Then, buy the shares from Management B using Management B's unit
prices and funds.

3. Having a separate Quicken account for each management company really
serves no purpose; however you can track it that way, if you like. I assume
you already have a Quicken account for "Management A", the original
management company for your company's 401K. You will need to set up a
Quicken account for "Management B", the new management company. If you have
any funds (or perhaps individual stocks) you can actually transfer shares
from one account to another: "Shares Transferred Between Accounts"
transaction type. I doubt if that will work for you since most 401K
management companies tend to use "units" rather than real "shares". If
either management company uses "units", then you will have to sell all the
units in the Management A account (similar to #2 above). Then, transfer the
cash from the Management A account to Management B. Then, buy units in the
Management B account.

I hope this helps.

Randy Stevens
 
F

FranksPlace2

I don't understand why you want to track the basis.

You don't need it for tax reasons because both your pretax
contributions and all earnings have zero basis.

If you make after tax contributions, keep a running total in the
comments section.

Tracking basis for investment performance is questionable because you
have different investment companies and different mutual funds.

If you sold shares on mutual fund 1 and used those funds to purchase
shares in mutual fund a of the new company, you set the price of
mutual fund a such that the total amount equals the basis of mutual
fund 1.

Frank
 
S

scott

Thanks Randy for the informative reply. My news reader seems to be acting
up so my original question doesn't show. Anyway, I guess in my quest for
using Quicken to show historical info, I forgot that I don't really care
about retirement account basis'. This hold true for my IRAs and Roths,
right? I guess that for my purposes, I should just keep track of my 4
company 401Ks and hold the different fund accounts in them.

Perhaps I am just new to this Quicken way of life, but I do still have a
question or two. When I transfer value to the "new" company and the "old"
account is zero, should I delete the account or should I just leave it in
the 401K with a zero ballance and mark it as Hide In Quicken? I reason that
I should keep the data that shows the historical rise (or fall:{ ) in value,
right? If I decide to transfer a poorly performing IRA fund to a different
fund in the same company, should I do the same, zero it and hide it?

Thanks Again,
Scott
 
S

scott

Thanks Randy for the informative reply. My news reader seems to be acting
up so my original question doesn't show. Anyway, I guess in my quest for
using Quicken to show historical info, I forgot that I don't really care
about retirement account basis'. This hold true for my IRAs and Roths,
right? I guess that for my purposes, I should just keep track of my 4
company 401Ks and hold the different fund accounts in them.

Perhaps I am just new to this Quicken way of life, but I do still have a
question or two. When I transfer value to the "new" company and the "old"
account is zero, should I delete the account or should I just leave it in
the 401K with a zero ballance and mark it as Hide In Quicken? I reason that
I should keep the data that shows the historical rise (or fall:{ ) in value,
right? If I decide to transfer a poorly performing IRA fund to a different
fund in the same company, should I do the same, zero it and hide it?

Thanks Again,
Scott
 
R

Randy Stevens

I must be using the same newsreader as you! My reply did not show up in the
reader!

Tracking the basis in tax-deferred accounts is irrelevant for tax purposes.

I'm somewhat of a "digital packrat". So, I prefer to keep the zero-balance
accounts and hide them. That way, the history is there if you ever want to
look at it or see how well your performance was.

If a security is unique to one of the zero-balance accounts, I would hide
that security since there is no possible way to buy or sell it again. I
don't believe it is possible to delete the security since it is used in an
account.

If you sell all your shares of a poorly performing fund and buy another fund
within the same account, there is no need to hide the old fund. As the
economy changes, you might want to buy shares in the old fund when it
performs better.

Randy
 
Ad

Advertisements

J

John Pollard

Randy said:
I must be using the same newsreader as you! My reply did not
show up in the reader!
It appears that both of you are using Outlook Express v6, as I
am (open or right click a post, click properties, click the
"Details" tab). But I doubt that the missing post(s) are a
result of the newsreader itself (especially if there is no
consistency to the "missing" posts), more likely your newsgroup
server, I think.
Tracking the basis in tax-deferred accounts is irrelevant for
tax purposes.
For tax purposes yes, but how else would you ...

see how well your performance was.
<snip>
 
Ad

Advertisements

S

scott

Ok, I am getting frustrated with this thing.
I am putting in history for an IRA account and I want to enter the annual
custodial fee. I started as a Sell -Shares Sold transaction so I can record
a $10 fee that reduced my account by $10 worth of shares. The first one I
entered it came up with the usual screen and recorded fine. Now I get to
the next year and do the exact same thing and it pops up the same
window..... But almost the same.... it now also asks for a place to Record
the Procedes. It won't let me just reduce $10 bucks in shares. On the first
trans, it did not show this "Record Procedes?" box. Any idea why I am
running into this wall?? I memorized the original transaction to see if I
could repeat it, but now I cannot figure out how to call it up.. Now it is
late, but this should be a simple one, right?

Scott
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top