Entries and Transfers [Edited]

JackB
JackB Member ✭✭
Most Canadians that can save for retirement usually use a Registered Retirement Savings Plan (“RRSP”). RRSPs are very similar to conventional on-line investment accounts, except that income earned in the RRSP is sheltered from income tax until the funds are withdrawn from the account. (I believe that RRSPs may resemble US 401Ks).

When an RRSP holder like me turns 72, their RRSP is automatically converted to a Registered Retirement Income Fund, or “RRIF”. Each year, the investor must withdraw a minimum amount from their RRIF. When they do so, the withdrawn amount becomes taxable income.

The process is quite straightforward. Early each year, my broker advises me the total amount that must be withdrawn and I then decide the timing and what combination of cash and securities I want to withdraw. Any securities withdrawn from the RRIF are valued at the market price at the time of withdrawal. As a result, I consult my broker to ensure that I don’t withdraw more shares than required.

In Quicken, I record cash withdrawals as conventional transfers between account(s). However, I have just realized that I have been incorrectly recording the share withdrawals i.e. I have used the “Remove” action to record the number of shares. In doing so, Quicken records the withdrawal at the shares’ Cost, not their Market Value.

I just recognized this error, but I don’t seem to be able to cancel or undo this year’s share transfer entries, much less correct my past errors. If I could do so, I think that within Quicken, I should have recorded each share withdrawal (i) as an “internal” sale from my RRIF at the previous market price, and (ii) a purchase of those shares by a taxable, non-sheltered account at that same market price.

Can you advise:
1. How I can cancel my most recent entries, and those for previous years, and
2. Whether my proposal for transferring the shares to other Quicken accounts is viable?

Answers

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    1. You should be able to simply delete the Removed transactions.

    2. Unless there is some tax advantage in transferring the shares, the Sell/transfer cash/Buy should work. The cost basis is reset when you transfer the shares, right?
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