Switching an Account Type to Roth IRA

Just Me and Not Someone Else
Just Me and Not Someone Else Member ✭✭✭✭
edited August 2019 in Investments (Windows)
Currently a tax deferred investment can be switched to an IRA, 529 or 401(k), but not a Roth IRA.  Since a regular and Roth IRA are treated very differently from a tax purposes it would be an excellent enhancement (especially in the Lifetime Planner) to be able to switch an account to a Roth.
23
23 votes

Implemented · Last Updated

This request has been implemented in the R35 release. Please note this change is intended to resolve scenarios where the account was setup with the wrong type.

Comments

  • Rocket J Squirrel
    Rocket J Squirrel SuperUser, Windows Beta ✭✭✭✭✭
    Currently, the only way to designate an account as Roth is at account creation time, and only when creating a manual, offline account (which can later become online). This is really not at all obvious. @Just Me and Not Someone Else 's idea of being able to designate an existing account as Roth would be a big help.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • Agreed.  I created my IRA account long before Quicken support Roth.  I'd really like to be able to convert them to the correct type of account
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Yes, this would be a significant improvement. I voted for this some time ago and I still support it.
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  • butlerd12
    butlerd12 Member
    What is the recommended remedial action in the absence of an easy way to update the account type from Traditional to Roth? Is the best option truly to wait for a button, or is there a manual approach that is not too labor intensive?
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    One approach would be to create a new Roth account in Quicken and transfer the assets to it.
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  • jfclague
    jfclague Member ✭✭✭✭
    One approach would be to create a new Roth account in Quicken and transfer the assets to it.
    How do you create a new account as a Roth acct.?

    The only options when creating a new investment acct. are:
    -Brokerage
    -401k or 403b
    -IRA or Keogh Plan
    -529 Plan
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser, Windows Beta ✭✭✭✭✭
    jfclague said:
    How do you create a new account as a Roth acct.?
    Go through the steps to create the account and you will eventually be prompted for this.

    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Choose IRA or Keogh Plan then
    Advanced setup
    I want to enter transactions manually
    Name the account and follow the directions. 
    At the end Quicken shows a dialog that lets you choose the owner - myself or spouse - and the IRA type:
    Traditional
    Roth
    Coverdell
    Keogh
    SEP or
    Simple


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  • Movie Nut
    Movie Nut Member ✭✭✭
    HOW DO I VOTE for this ! This is a great idea,
    "No Matter Where You Go, There You Are"
    Windows 10 Pro, Quicken Subscription
  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    Movie Nut said:
    HOW DO I VOTE for this ! This is a great idea,
    Click here (at the top of the thread):

    Signature:
    (I'm always using the latest Quicken Windows Premier subscription version)
    This is my website: http://www.quicknperlwiz.com/
  • Just Me and Not Someone Else
    Just Me and Not Someone Else Member ✭✭✭✭
    edited May 4
    Converting an IRA to a Roth IRA is probably the most useful, but a lot of companies and/or Solo 401(k)s have Roth options as well.  Need to be able to set up Roth 401(k)s also.  
  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    I would like to state something that might not be obvious.

    This change in account type should be for "mistakes", not an actual conversion.

    As in this shouldn't be a "conversion".

    When someone says they converted a Traditional IRA to a Roth IRA that is a completely different operation than when a person says I created the account as a Traditional IRA and it should have been a Roth IRA.

    A conversion implies a lot of tax ramifications, which is beyond what I think this thread is about.  If that was being done, then it would probably be some kind of wizard to help with the conversion/tax ramifications.

    Instead "changing the account type" is more about just informing Quicken how to display the data and treat it in parts of Quicken like the Tax Planner and Lifetime planner, and Account intent.
    Signature:
    (I'm always using the latest Quicken Windows Premier subscription version)
    This is my website: http://www.quicknperlwiz.com/
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    To build on @Chris_QPW's comment, if you would like to see Quicken improve handling of Roth conversions and other distributions form tax deferred accounts, please review and vote on this Idea post
    https://community.quicken.com/discussion/comment/20146150
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This discussion has been closed.