Transfer Funds inside a 401k

[KennyF]

My 401k has recently changed all the accounts from publicly traded funds to
private funds. How do I move the balances to the new funds (and keep the
current cost basis)

 

[Chris Cowles]

My 401k has recently changed all the accounts from publicly traded
funds to
private funds. How do I move the balances to the new funds (and
keep the
current cost basis)

Sell the old funds and buy the new ones. The account itself is
unchanged, unless you moved it.

 

[KennyF]

Chris,
I just tried that and I don't get the desired results.
When I do that the cost basis for the fund is set to the newly purchased
price. No, I remember doing this once before and it is more difficult than
that.

Ken

 

[Cal Learner-- MVP]

My 401k has recently changed all the accounts from publicly traded funds to
private funds. How do I move the balances to the new funds (and keep the
current cost basis)

To do what you state you want, remove the symbol. Change the name.
Do an appropriate split to account for the difference in number of
shares.

I think Chris's suggestion is more in accord with what actually
happened tho.

 

[Brent]

The components of a tax-deferred account have no basis, but the account
itself will have basis come distribution time if after-tax contributions
were made.

 

[Dick Watson]

Right but the plan administrator and their statement values for BT/AT
amounts will be 1,000,000 x more important and probably better than anything
worth messing with trying to track in Money in that case.

 

[KennyF]

Thank you all for the information. There is cost basis because I have been
in these funds before the 401k, when it was call an ESOP. All that money was
after tax. Now I like to keep track of pre/post tax as I near retirement,
and consider how I can use my money without the penalty taxes.

 

[Cal Learner-- MVP]

Thank you all for the information. There is cost basis because I have been
in these funds before the 401k, when it was call an ESOP. All that money was
after tax. Now I like to keep track of pre/post tax as I near retirement,
and consider how I can use my money without the penalty taxes.

I would probably track that by using a specific Category for doing
the Deposits, and then make a customized report.

That would be instead of trying to determine that from the basis of
the investments purchased. When you reinvest a dividend, the basis
of the mutual fund goes up. The amount of post-tax money contributed
does not.

 

[Brent]

Since I do the taxes of a family member who receives IRA distributions,
I had a conversation with our financial advisor to clarify this.

401k cost basis is NOT rolled over into an IRA, so 401k cost basis is
only relevant for distributions taken on assets NOT rolled over.

Subsequent after-tax contributions made to the IRA are the sole cost
basis of the IRA and are distributed last.