Account change

Question

I have a minorRoth IRA with Fidelity. The minor has come of age so I need to change the minor Roth IRA to a regular Roth IRA. What is the best way to accomplish this? Can I change the account number in Quicken and update or should I create a new account?

Frankx · Answer

If we are talking about tax audits here, I would strongly suggest that one NOT give access to a Quicken file under any circumstances.

Tax audits do involve the presentation of relevant source documentation to the tax authority, including, but not limited to, original invoices and receipts, and perhaps some schedules along with such documentation that display, explain and/or support various entries on a tax return or its accompanying schedules.  But we are talking about potentially (and at most) providing printouts from a Quicken file.  Such printouts - in this case - should never include financial data of one's adult daughter.

Personally, I would never suggest that access to a Quicken data file be given to any tax auditor.

Frankx

splasher · Answer

The issue is that if either of you is audited, the other's records are exposed to the audit and you might not want that to happen, not that you have anything to hide, it is just a good idea to not let anyone look at things they don't need to be looking at.

garysmith87 · Answer

Alternatively, just mark your son's Roth IRA as "Separate", so it won't be counted in your Net Worth.

I keep track of my adult daughter's Roth IRA and her 401K for her.  Both accounts are marked "Separate".  I have distinct Portfolio views set up to view only her accounts and see their performance.

Although accounting principles would tell you to have those accounts in a distinct new Quicken data file, it's not required.

Pretty sure that's what Quicken had in mind when they created the "Separate" distinction.