want to transfer out funds from a fund within an account to a fund within the same account.


V

victor.thompson

I want to do this to preserve my cost basis. I have a 401k that lets
say has a fund that I bought for 100 bucks and it gained 10 dollars.
when I issue a buy/sell to transfer it to another fund (within the same
401k account) the new cost basis is 110 dollars instead of the 100 that
I actually spent. I know that using transfer in/out will preserve this
cost basis, but it doesnt seem to work within an account per other
threads of this nature.

How can I do something similar within the same account? I am using
2005 premium.

Thanks
Vic.
 
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D

Dick Watson

I don't think your use of Cost Basis reflects tax law were this a regular
investment account, nor is Cost Basis in the classic sense relevant at all
to 401k accounts.

That having been said, I don't know a way to achieve what you want to
achieve. Selling one investment and buying another is just that. Transfer
Shares is not that.

If your goal is to keep track of your original contribution, I'd suggest
there are other ways to achieve the goal.
 
V

victor.thompson

I realize that it is not a transfer, but i do not realize any taxes on
gains or any distributions thereof. Since this is a tax deferred
account my cost basis *should* remain the same until my positions are
actually sold (cashed in).

Is there any way to get money to calculate my gains this way? Or any
way to get similar software (quicken) to calculate this way? Gains
should equal money out - money in. When a fund is transferred
internally the gains are still not realized so the classical definition
is not quite accurate.
 
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D

Dick Watson

I'd let the plan administrator worry about what money is your contribution
(and what of that was pre-tax vs. post-tax) versus what money is a gain. At
any rate, for pre-tax contributions, the contribution and the gain is ALL
going to get treated as earned income the day you get a hold of it.

Once the account is setup as a 401k/tax deferred account in Money, all of
the tax reporting will reflect its activity correctly--i.e., not at all.

I don't know of a way to get Money to reflect investment performance in a
401k on an "original contribution" basis. Can't say whether Quicken can do
it. I'd bet not.
 

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