Posting one funds dividends to purchase shares in another fund

plastic/fantastic

How do i record dividends of a tax deferred account being used to directly purchase shares in another tax deferred account? The account providing the dividends is allowing the posting to be either income or dividends, so that's good. The account where I am purchasing addn'l shares has greyed out "From this account's cash balance,' and does not list the dividend providing acct on the drop down source list.

Jim_Harman

It sounds like one or both of your accounts are set up as Single Mutual Fund (SMF) accounts. These are limited investment accounts that can only hold one mutual fund and not cash. You can see this setting if you click on Holdings for the account and scroll down to the Account Attributes section.

Unless this is is required by your financial institution for downloading, it is generally best to set up your accounts as Brokerage accounts, by selecting No for this option. Back up your data file first before changing this in case you do not like the result for some reason.

Once at least one of the accounts is a Brokerage account, you can send the cash dividend to that account with a Div or DivX and then buy the new mutual fund in the other account with a BoughtX or Bought..

If for some reason they must both be SMF accounts, you must send the cash to a 3rd account that can hold cash with a DivX then buy the new fund with a BoughtX. 

Jim_Harman

It sounds like one or both of your accounts are set up as Single Mutual Fund (SMF) accounts. These are limited investment accounts that can only hold one mutual fund and not cash. You can see this setting if you click on Holdings for the account and scroll down to the Account Attributes section.

Unless this is is required by your financial institution for downloading, it is generally best to set up your accounts as Brokerage accounts, by selecting No for this option. Back up your data file first before changing this in case you do not like the result for some reason.

Once at least one of the accounts is a Brokerage account, you can send the cash dividend to that account with a Div or DivX and then buy the new mutual fund in the other account with a BoughtX or Bought..

If for some reason they must both be SMF accounts, you must send the cash to a 3rd account that can hold cash with a DivX then buy the new fund with a BoughtX. 

plastic/fantastic

Thanks! I knew it just HAD to be possible to overcome this relatively common situation. Thanks for your clear answer.