How to handle exchange of funds?

PSJCal
PSJCal Quicken Windows Subscription Member ✭✭
edited July 2021 in Investing (Windows)
Win 10, Qkn P R34.24
3 AIG funds were exchanged for Touchstone yesterday. The d/l's show AIG were "Removed" & Touchstone were "Added." I don't find an Exchange option in the dropdown list & am concerned re: the implications of simply removing & adding investments.
Is there a better way to handle?
Tagged:

Best Answer

  • Frankx
    Frankx Quicken Windows Subscription SuperUser ✭✭✭✭✭
    Answer ✓
    According to the IRS forms 8937 located on the Touchstone website, these apparently were tax-free exchanges, meaning the basis in the AIG funds carry over to the new funds.  I agree with @Jim_Harman that you should NOT accept the downloaded transactions and should use the mutual fund conversion feature of Quicken instead.

    Frankx

                            Quicken Home, Business & Rental Property - Windows 10-Home Version

                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

Answers

  • Jim_Harman
    Jim_Harman Quicken Windows Subscription SuperUser ✭✭✭✭✭
    Were the funds sold and bought, or was this a tax free conversion?

    If tax free, you should go to the account and delete the Removed and Added transactions. Then hit the Enter transactions button and select Mutual fund Conversion.

    Back up your data first, in case something goes wrong.
    QWin Premier subscription
  • PSJCal
    PSJCal Quicken Windows Subscription Member ✭✭
    Thanks for quick response. These funds are in a taxable acc't but if taxable ?? The Wells Fargo website shows "Exchange" not sell - buy & news states it was an acquisition so appears to be tax free BUT? Broker is out of town for several more weeks so will have to wait for tax info. At least there is good info on Touchstone site re: which Touchstone funds were acquired from which AIG funds.
  • Frankx
    Frankx Quicken Windows Subscription SuperUser ✭✭✭✭✭
    Answer ✓
    According to the IRS forms 8937 located on the Touchstone website, these apparently were tax-free exchanges, meaning the basis in the AIG funds carry over to the new funds.  I agree with @Jim_Harman that you should NOT accept the downloaded transactions and should use the mutual fund conversion feature of Quicken instead.

    Frankx

                            Quicken Home, Business & Rental Property - Windows 10-Home Version

                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

  • PSJCal
    PSJCal Quicken Windows Subscription Member ✭✭
    Thanks for responses. Unless a reinvest of dividend or capital gains I rarely enter investment transactions until I check w/brokerage -- this has saved me many a restore of b/u. So appreciate the warning.
    Tomorrow a.m. I'll see how the conversion works w/1 fund & go from there.
  • Jack Tarburton
    Jack Tarburton Quicken Windows Other Member ✭✭
    Thank you. The mutual fund conversion feature worked
This discussion has been closed.

Categories