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401k Rollover to Traditional IRA

I recently left my employer, and had to roll over to my existing traditional IRA. But in Quicken, it's still there, and I need a way to perform the "virtual" rollover. Unfortunately, the incoming transaction to my IRA has already been downloaded and entered. But I am left with the 401k, which I need to close out manually. Any help would be appreciated! There were many holdings, and if I am supposed to "sell" them manually. How accurate does this need to be for taxes when selling the 401k holdings for a rollover to a traditional IRA? OK, that's 2 questions, but they are related.

Best Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    The correct way to handle this in Quicken is to initiate a "Shares transferred between accounts" in the old 401(k).  Quicken will do one "Remove" action for each security in the 401(k) leaving that Account zeroed out.  Quicken will do one "Add" action for each lot of each security in the new IRA.  That leaves the history of transactions in the 401(k) and establishes each security in the IRA with correct dates and bases.

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    The correct way to handle this in Quicken is to initiate a "Shares transferred between accounts" in the old 401(k).  Quicken will do one "Remove" action for each security in the 401(k) leaving that Account zeroed out.  Quicken will do one "Add" action for each lot of each security in the new IRA.  That leaves the history of transactions in the 401(k) and establishes each security in the IRA with correct dates and bases.
  • roger
    roger Member ✭✭
    > @"Tom Young" said:
    > The correct way to handle this in Quicken is to initiate a "Shares transferred between accounts" in the old 401(k).  Quicken will do one "Remove" action for each security in the 401(k) leaving that Account zeroed out.  Quicken will do one "Add" action for each lot of each security in the new IRA.  That leaves the history of transactions in the 401(k) and establishes each security in the IRA with correct dates and bases.

    Thank you!
  • roger
    roger Member ✭✭
    > @roger said:
    > > @Tom Young said:
    > > The correct way to handle this in Quicken is to initiate a "Shares transferred between accounts" in the old 401(k).  Quicken will do one "Remove" action for each security in the 401(k) leaving that Account zeroed out.  Quicken will do one "Add" action for each lot of each security in the new IRA.  That leaves the history of transactions in the 401(k) and establishes each security in the IRA with correct dates and bases.
    >
    > Thank you!

    There is a snafu in that... the holdings are not really in my IRA. They were liquidated, so cash should be the only thing entered into the IRA. Perhaps I need to create a temporary account to receive the holdings? I'd still need to "sell" and then transfer the resulting cash into the IRA account.

    Why doesn't Quicken have a "Rollover" option in the investment accounts that qualify?
  • roger
    roger Member ✭✭
    Thanks to y'all... I got it cleaned up. I was a little too fast to close the 401k account after I had done the Share Transfer... my bad. However, since my IRA had already downloaded the cash deposit, all I needed to do was delete the transferred shares, and the balance is now correct. I see in the closed 401k that the stocks were transferred, not sold, but I will have to deal with that later. At least I know the transaction date.
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