how do i reflect the difference between a vested amount and total amount in an IRA investment

dbvande

i have an account in which the vested amount is less than the total amount. How do I reflect that in my investment totals for net worth calculations

Tom Young

How do you happen to have securities in an IRA that aren't vested?  The typical pattern when investing in an IRA account is you take some money out of your pocket, put it in the IRA, then buy something.  Whatever you bought is unequivocal yours.

If you put some employer stock options in the IRA, how did you value them for keeping track of your contribution?

If this is what you're dealing with then I'd keep the options separate from the stock itself, with unique security names.  There are ways of valuing stock options - I'm pretty sure there are programs based on Black-Scholes that you might use somewhere in the internet - and you could probably periodically change the value of the options based on these programs.  If a particular option expires unused, you write it off.  If the option vests but isn't exercised - e.g., a NQSO - you could price it based on the "spread."  If an option is exercised then you convert that particular security to employer stock.

Jim_Harman

Or is this actually a 401(k) account rather than IRA? Sometimes the company match in a 401(k) does not vest immediately.

dbvande

It was a 401k

bmciance

What I did in the past when I had that was create an account called “401k vesting offset” and put in an amount that would reduce my 401k balance down to the vested amount.