Re: Simplest way to handle IRA -> Roth conversion

Posted by Oilcan on November 11, 2008, 12:58 am

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If you are simply transferring 100% of one account to the other - you
can rename the account - deactivate the existing downloads - create the
new downloads.

Oilcan

-----Original Message-----
From: Ron [mailto:Harvested@comcast.net]
Posted At: Monday, November 10, 2008 8:19 PM
Posted To: alt.comp.software.financial.quicken
Conversation: Simplest way to handle IRA -> Roth conversion
Subject: Re: Simplest way to handle IRA -> Roth conversion

> Where is "shares transferred between accounts"? How do I get to it?

> use Quicken Premier 2008.

Gary, you've got the IRA set up as an investment account, right? In the

transactions register, click on Enter Transactions and scroll the
listbox
down. Be aware of what I said above, the "transfer" will actually
produce a
shares removed action in the original account and shares added action(s)
in
the target account. (There will be as many entries in the target
account as
there are lots being moved, so as to preserve the basis.)

John, understood about selling and "re-buying," but won't that change
the
basis? Not good for tracking ROI, etc. I guess Quicken is not yet
sophisticated enough to compute both the tax liability and maintain
performance history when doing an IRA=> Roth conversion in kind. You
can
sense that from the help file, which fails to provide detailed focus on
such
a transaction.

-Ron

Posted by Han on November 11, 2008, 6:37 am

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@AnthonyPC:

> If you are simply transferring 100% of one account to the other - you

> can rename the account - deactivate the existing downloads - create the

> new downloads.

> Oilcan

I just instructed Citibank/Smith Barney to do just that, transfer 100% from
a traditional IRA to a Roth. Now there is about $1.50 left in the old
account, and the 13K (was >20) is transferred. I guess I will be better
off to handle it as a sell/buy. Oh, the hassles in getting this done ...
I name the (dis)organization so others can avoid them.

--
Best regards
Han
email address is invalid

Posted by Ron on November 11, 2008, 7:32 am

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> If you are simply transferring 100% of one account to the other - you

> can rename the account - deactivate the existing downloads - create the

> new downloads.

And this creates the 1099-R data...how? Anyway, doesn't apply to me, where
I convert a portion in kind each year from the IRA to the Roth. (Trying to
keep the marginal tax bracket minimal.) -Ron

Posted by Oilcan on November 11, 2008, 5:44 pm

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I don't export from Quicken into Turbo Tax. I am not concerned what
Quicken shows as 1099-R data as I use what is provided to me from the
issuer. I am able to trace the numbers on the 1099-R which is good
enough for me.

Oilcan

-----Original Message-----
From: Ron [mailto:Harvested@comcast.net]
Posted At: Tuesday, November 11, 2008 4:32 AM
Posted To: alt.comp.software.financial.quicken
Conversation: Simplest way to handle IRA -> Roth conversion
Subject: Re: Simplest way to handle IRA -> Roth conversion

> If you are simply transferring 100% of one account to the other - you

> can rename the account - deactivate the existing downloads - create

the

> new downloads.

And this creates the 1099-R data...how? Anyway, doesn't apply to me,
where
I convert a portion in kind each year from the IRA to the Roth. (Trying
to
keep the marginal tax bracket minimal.) -Ron

Posted by Gary on November 11, 2008, 9:09 pm

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>> If you are simply transferring 100% of one account to the other - you

>> can rename the account - deactivate the existing downloads - create the

>> new downloads.

> And this creates the 1099-R data...how? Anyway, doesn't apply to me,

> where I convert a portion in kind each year from the IRA to the Roth.

> (Trying to keep the marginal tax bracket minimal.) -Ron

A side comment: it is unrelated to Quicken. But it is about the idea
of converting your IRA to Roth a bit each year so as to stay in the
same tax bracket.

I was doing the same thing in prior years. But this year I decided
that there will be a significant increase in tax rates some time in
the near future. I am over 70.5 years old, taking out my MRDs, which
boosted my income and my taxes. So I finally did the entire conversion
this year while the tax rates are lower than they are likely to be for
years to come. I'll pay a BIG bundle in taxes next April 15, but with
a bit of luck and no MRD I may never have to pay taxes again (or at
least only small amounts of taxes). And that will be in years when the
tax rates will rise, in my expectation.