Preparing New Accounts for Download

Jim in Arizona

I recently reorganized an IRA account I have at Fidelity. Some of the funds in the account were moved to three newly-created accounts, leaving a balance in the original account. The account was originally structured as a single account with an account number, and I structured the corresponding Quicken account the same way. I have been updating this account using transaction download with the direct connect method for several years.

Following the Fidelity reorganization, I now see four accounts when I log in to the Fidelity website - the original one and three new ones, all with their own account numbers. I assume that the three new ones will also need to be matched by three new Quicken accounts. Is this the case? If so, will Quicken create those new accounts the first time I run a download? I have resisted doing a download since those accounts were created in case that's not the best thing to do. Perhaps I should manually create the new Quicken accounts first before doing a download? In a recent discussion on another topic I was involved with, Rocket J Squirrel said, "I find it gentler on my soul to manually create accounts [rather than let Quicken do it] and then activate & link them. Then I get exactly what I want."

Any advice will be appreciated.

Tom Young

"I assume that the three new ones will also need to be matched by three new Quicken accounts. Is this the case?"

The structure of your Quicken Accounts at a Financial Institution (FI) should mimic the FI's structure.  So you'll need 3 additional Accounts.

"If so, will Quicken create those new accounts the first time I run a download? I have resisted doing a download since those accounts were created in case that's not the best thing to do."

I'd say the best thing to do is to create those Accounts now, as manual Accounts.  After you have them set up, use "Shares Transferred Between Accounts" action in the original Account to move the securities appropriately to the new Accounts.

At that point you can establish connections between Fidelity and Quicken using "Link" to the existing Accounts.

The next download should result in confirmation that the transactions created by your use of "Shares Transferred Between Accounts" in the old Account - which should result in some number of "Removed" actions in the original Account and (probably a greater ) number of "Adds" in the new Accounts - were done properly, i.e., all downloaded transactions should fine a "match" in their Account.

Jim in Arizona

Tom, thank you for your advice. The step in the procedure which will be problematic is, "After you have them set up, use "Shares Transferred Between Accounts" action in the original Account to move the securities appropriately to the new Accounts." The reorganization was all done by a Fidelity financial advisor. While he initially moved some assets from the original account to the three new accounts (I don't know which ones), he then used those assets to purchase numerous other investments. Can I create the three new accounts and leave them empty, assuming that the first download will properly populate them and adjust the original account at the same time?

Tom Young

"Can I create the three new accounts and leave them empty, assuming that the first download will properly populate them and adjust the original account at the same time? "

You can do that and hope that the downloads remove the proper shares, move them properly to the new Accounts, correctly sell them in the new Accounts and then properly use the resulting cash to buy the new securities.  It might work, or it might not, or some of it may work and other parts won't.

It's not entirely uncommon that financial institutions don't send Quicken the correct accounting transactions to reflect what went on the Account - maybe a Remove action and an Added action instead of a proper Sold action (recognizing gain and loss) followed by a Bought action that establishes the new positions.  Financial institutions generally focus on getting your positions correctly stated, (more or less), but sometimes those positions lack basis information and/or "term" information.  It's something of a crap shoot.

The step by step details of transactions that occurred in your accounts are entirely comprehensible should be available to you and your accounting records should properly reflect exactly what happened, (in my opinion), though I know that many people don't know and don't care about the details.  If they think that the number of shares of their securities are correct they are entirely satisfied.

Make a backup of your file and try your first download.  If the results are pleasing to you then you're done.  If you're not satisfied with the results then "no harm, no foul."  You restore your backup and you're no worse off than before.