Rollover from 401K to Traditional IRA

Unknown
Unknown Member
edited November 2018 in Investing (Windows)
I rolled over a 401K to a tradition IRA account (check sent from 401K manager directly to IRA manager.
When I enter a Sold transaction in the 401K account and a Bought transaction in the new IRA my Cost Basis changes as if I actually received cash and used that cash to buy shares.
How do I enter the transaction without affecting my Cost Basis?

Comments

  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited October 2018
    You don't.  You DID sell shares ("check sent" ... that check/cash had to have come from somewhere).

    Your cost basis DOES change, as you've described the scenario.  That you never had your hands on the check is immaterial ... as your agents (the 401k trustee and the IRA trustee) DID have the cash.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser, Windows Beta ✭✭✭✭✭
    edited May 2017

    You don't.  You DID sell shares ("check sent" ... that check/cash had to have come from somewhere).

    Your cost basis DOES change, as you've described the scenario.  That you never had your hands on the check is immaterial ... as your agents (the 401k trustee and the IRA trustee) DID have the cash.

    The good news is that cost basis doesn't matter inside a tax-deferred account. All that matters at tax time is the amount withdrawn when a distribution is taken.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited May 2017

    You don't.  You DID sell shares ("check sent" ... that check/cash had to have come from somewhere).

    Your cost basis DOES change, as you've described the scenario.  That you never had your hands on the check is immaterial ... as your agents (the 401k trustee and the IRA trustee) DID have the cash.

    It matters for performance reporting ... just not for tax purposes.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited November 2018
    If you want to see the combined performance of the 401k and the rollover IRA, make a customized Investment Performance report that includes just those two accounts.
    QWin Premier subscription
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