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Posted by John Pollard on April 4, 2008, 8:01 am
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Andrew wrote:
> OK - let's see. I searched the archives, and see some
> discussion
> about this that Han and I had about 7 years ago (!) with some
> others,
> but I don't think it was ever resolved fully. At the time,
> for me,
> it was academic; not now!
> My wife ended her 'career' at a small company, and rolled over
> her
> qualified plan retirement account to her IRA. So far, so
> good.
>
> But how to do this in Quicken such that:
>
> 1) Q doesn't think we owe taxes on any of the amount of a
> presumed
> 'sale' (although since both accounts are 'retirement', that
> shouldn't
> occur) if I used export to Turbotax or tax reports within
> Quicken
>
> 2) Q doesn't think that the additional $ being introduced into
> the
> IRA are part of a 'contribution' for a particular tax year.
>
> I tried a SELLX, but Q wants me to tell it which year (2007 or
> 2008)
> it is supposed to be credited to in the IRA account. Answer -
> NEITHER! It's a rollover!
>
> Apparently I *can* do a SHRS ADDED in the retirement account
> without
> being prompted for a tax year contribution value, but that
> doesn't
> debit the cash introduced from the SELLX.
>
> Maybe a REMOVE SHARES from the original qualified plan
> retirement
> account and a SHRS ADDED in the IRA with appropriate memo
> entries -
> although this doesn't link the two transactions automatically.
>
> Does Q understand what a 'rollover' is? I'm surprised that's
> not an
> option in the ACTIONS field. I wonder if it is possible to do
> this
> and satisfy both '1' and '2' above?
I agree with the others; transfer shares between accounts should
get most of the job done with no adverse affects (it just does a
remove-shares/add-shares ... but it keeps track of lots).
The one zinger might be if you have cash in the FROM account;
Quicken is not yet smart enough to recognize that it is possible
to transfer cash from one tax-advantaged account to another
tax-advantaged account without making a "contribution" in the TO
account.
You can work around that problem though. Before you initiate
the "Shares transferred between accounts" transaction, create a
dummy security with money market fund characteristics
($1/share), and use all the cash in the FROM account to buy
shares in that dummy security. Then do the "Shares transferred
between accounts" for all securities. After the dummy security
has been transferred to the TO account, sell its shares to
regain your "cash".
One other point seems worth mentioning. The suggestions to
"transfer shares" assume you will hold the same securities in
the new account as in the old ... which is not always the case.
But the workaround for "cash" above will help there too.
If you won't, or can't, transfer your holdings to the new
account, you'll need to sell the securities in the old account,
transfer the "cash" to the new account, then purchase the new
securities in the new account.
To avoid having the cash transferred into the new account
treated as a "contribution", use the same procedure as above;
after you have sold all your holdings in the old account, use
the resulting cash to buy shares of the dummy security, then
"transfer" the dummy security to the new account, sell all its
shares in the new account, and purchase your new holdings.
--
John Pollard
First initial underscore Last name at mchsi dot com
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