Vanguard - Mutual Fund Conversion

biehlpa

Tried converting a Vanguard mutual fund to its ETF version, which is tax free (using the share class conversion for a mutual fund). Seemed to go ok but Quicken did not retain and convert the historic tax lot information as these shares were acquired over several years. Did I do something wrong? What can I do to fix?

Tom Young

Perhaps you're facing the issue noted here: https://community.quicken.com/discussion/7851350/mutual-fund-conversion-quicken-please-fix-it#latest

I'd suggest using the "Corporate Acquisition (stock for stock)" action instead, which apparently does work in this situation.

Jim_Harman

Did you end up with a MUCH higher cost basis than expected? Chances are you had the old mutual fund set to "Use average cost." There is a bug in the Mutual Fund conversion that prevents this from working properly.

Also I assume you are using the current version of QWin. Older versions had problems with the conversion.

biehlpa

Thank you Tom and Jim. I moved to the subscription model a few years ago (version R27.42). Tom, the link you provided is my issue. I have the same fund in 2 different accounts, one I converted (as a test to figure out how Qwin handles) and the larger holdings I will convert soon. To complicate things more, I'm converting my mutual fund account to a brokerage account (new AC number) and converting several funds to their ETF counterpart. On the conversion of the mutual fund AC, the Q rep suggested that rather than set up a new AC in Q I should deactivate auto download for the fund, change the AC number to the new one in the edit AC screen and then reactivate auto download. That seemed to work and retain all the lot info with minimal fuss.

Ps56k2

biehlpa said:To complicate things more, I'm converting my mutual fund account to a brokerage account (new AC number). On the conversion of the mutual fund AC, the Q rep suggested that rather than set up a new AC in Q I should deactivate auto download for the fund, change the AC number to the new one in the edit AC screen and then reactivate auto download. That seemed to work and retain all the lot info with minimal fuss.

I've been thinking about doing the Vanguard Transition
from legacy Mutual Fund Only account to the requested Brokerage account. 
The Vanguard info says we have till 2022 - but.....

If things are ok, and you just need to ....
Deactivate - new account number - Activate -
then it should be simple...  still thinking -

I would have not bundled the ETF conversion into the same timeframe effort -
one major thing at a time

SO.... this is how things look for me now - a single Vanguard account with these funds.
After the Vanguard Transition to Brokerage account - how does it appear ?
- As a single account with the "tickers" for the mutual fund holdings,
and - are all same shares there, and cost basis, historical transactions, etc ?

Jim_Harman

The account should look the same after the transition. You will probably have to delete some Added transactions where Vanguard is moving the positions to the new account.

Bob_L

One operating-not Quicken- difference you will notice is the normal brokerage industry practices of cash settlements, and therefore also downloads to quicken, after 2 maybe 3 days (forget which).  Also they make you clear to a settlement account of Federal MM.  Also if you are like me and refuse to have the government tell you where to put your money and use Prime instead then that complicates things a little as well.  I would delay as long as you can.  I did it for our Roth accounts but am not doing it for any others until they make me.