How are you tracking 401K Investment Fees?

My 401k "sells" off shares to cover the investment fees of the 401k. I am split between two different options on how to record this in Quicken:

1. Record the selling of shares as a simple "Shares Removed." This ensures that the number of shares is still correct, and it does not impact the "Realized Gain/Loss" since this asset fee shouldn't qualify as a Realized Gain/Loss unless I am misunderstanding something
2. Record the selling of shares as a "Sell" and then a corresponding "MiscExp" transaction and classify as an Asset Fee. The issue with this is that the "Sell" transaction would qualify as a sale, and essentially be categorized as a "Realized Gain/Loss"

What is your preference for handling these situations?

Best Answers


  • SammyDB
    SammyDB Member ✭✭
    I edit the fee/sale transaction and enter the dollar amount as a commission so the net transaction in the register is $0.00.
    Would I be better off entering a separate "MiscExp" transaction as the OP suggests?
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    IMO and as others have said above, the Sell and MiscExp is more accurate. It preserves the correct cost basis (even though that does not matter in a 401k account)  and if you identify the security in the MiscExp it correctly accounts for the effect of the fees on the performance.
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  • SammyDB
    SammyDB Member ✭✭
    Ah, that makes sense. Thanks Jim!
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