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Posted by Marty K on November 9, 2007, 6:23 pm
Please log in for more thread options John Pollard wrote:
> Jim Chesher wrote:
>> My employer is going to change to a different 401K Plan
>> Provider. How do I handle that in Q07D? Obviously I will have
>> to create a new
>> 401K account. Not sure if I should show it as a sell of one
>> security
>> from old provider and buy shares of a new security with new
>> provider.
>> Or if I should just do a cash transfer between accounts. Your
>> ideas
>> are appreciated.
>
> I take it you are not transferring holdings from one real-world
> account to another, that you will have to sell the holdings in
> your old real-world account and purchase new holdings in your
> new real-world account.
>
> If that's the case, I would endeavor to make Quicken reflect
> what happens in the real-world as closely as possible. And I
> think that would mean selling all the securities in the old
> account, transferring the cash to the new account, and
> purchasing securities in the new account.
>
> One caution: I think that when you transfer cash into a
> retirement account (no matter what the source of the cash),
> Quicken will want to treat it as a "contribution" in the new
> account. I don't know what all of the ramifications of that
> are, but I think you can avoid them if you are willing to
> deviate slightly from the intent of duplicating what happened in
> the real-world.
>
> After you sell all the securities in the old account, use the
> resulting cash to purchase shares of a dummy security with a $1
> price/share. Then tell Quicken to "transfer" the dummy security
> to the new account using "Transfer shares between accounts";
> sell all shares of the dummy security in the new account and use
> the resulting cash to purchase your securities in the new
> account.
>
A few years ago my employer (before I retired) changes 401K providers
(Vanguard to Fidelity) I did nothing in quicken. The source account was
frozen on some specified date and then the account $' were transferred
to the new provider which was also frozen for some short period of time.
As I recall where possible the a mutual
fund was transferred to from the source to the destination directly.
Where this was not possible the mutual fund was sold and the cash
was transferred.
At the end of the transfer the new provider was
"defrosted" and I was able to go online the new providers website
and reallocate the $s in the new 401K to whatever selections were
available at the new fund.
As for Quicken when the old fund was frozen I stopped any updates
and waited for the funds to move from the old to the new provider.
When the new 401K was "defrosted" it just set up a new account in
Quicken and started updating the new account. I then deleted to old
account. I suppose you could save the old for reference but I felt
it was not worth the effort. In my case the new provider, Fidelity was
just as good as Vanguard as far as fees and support goes. I hope
that your new one is as good as the old.
I think it would be very difficult to try and do anything within
Quicken until the transfer is completed. If a fund is transferred
intact from the old to the new it will most certainly have changed
value during the process and there would no way to predict the outcome.
Any cash that is transferred will most probably go from one money
market account to another.
Since Quicken investment accounts are independent of one another
there is no automatic way to reconcile between the two.
Marty
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