Traditional IRA Conversion to Roth IRA > Cost Basis

This is the first year I have performed the above transaction. As I understand, the process in Quicken is to "Remove Shares" from the Traditional IRA account and to "Add Shares" to the Roth IRA account. The conversion is within the same investment (a Vanguard mutual fund) and did not involve a sell/buy transaction. After completing the transaction I noticed that the "Gain/Loss (%)" column in the Investing Summary page shows a lower gain than prior to the conversion. I expected the cost basis to remain the same. Does Quicken change the cost basis of the original investments to the conversion date? If so, is there a way to avoid this cost basis change?

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Answers

  • Greg JonesGreg Jones Member ✭✭
    Hi John, Sorry for my delayed response. The financial transaction was a single mutual fund, all shares. The financial institution treated it as a shares move keeping the cost basis of all historical share purchases intact.

    In Quicken the transaction involved a single Remove Shares and Add Shares transaction between two Quicken accounts. Unlike the financial institution Quicken assigned a dollar amount to these transactions, presumably the share price on the date of the transaction.

    So the financial institution retained the original cost basis for each historical transaction but Quicken established a one new one. Am I correct that Quicken does not offer a transaction type that will retain all of the original cost basis amounts? If so, is this a reasonable enhancement request?
  • Greg JonesGreg Jones Member ✭✭
    John,

    Worked Great! Thank you.
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