How to convert share classes for mutual fund in Quicken Premier?

Pothole Damage
Pothole Damage Member
edited May 9 in Investing (Windows)
T. Rowe Price recently automatically converted all of my PREIX shares to their lower-cost I Class shares (PRUIX). This is a tax-free conversion, as this is the same mutual fund just with different share classes. I have the same account number, and T Rowe Price specifically says, “Your cost basis information will carry over.”

I am trying to figure out the best way to enter this share class conversion into Quicken. I want to preserve my cost basis from all of my original share class purchases (hundreds of lots over twenty-plus years).

I found this Quicken Help article that suggests using Corporate Acquisition transactions to handle share class conversions:
https://help.quicken.com/display/CAN/Enter+a+share+class+conversion+for+a+mutual+fund+or+stock


This Quicken FAQ also suggests using Corporate Acquisition transactions:
https://community.quicken.com/discussion/7081708/faq-convert-share-class-for-mutual-fund/p1

This post is my exact situation, and it suggests using a Mutual Fund Conversion transaction:
https://community.quicken.com/discussion/7885358/mutual-fund-shares-changed-from-one-class-to-a-new-class-how-do-i-manage-the-transaction

What method would be best for entering this class share conversion into Quicken? Again, I would really like to maintain my original cost basis in Quicken.

Thanks in advance for everyone’s advice!
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Comments

  • NotACPA
    NotACPA SuperUser ✭✭✭✭
    edited April 8
    By any chance do you hold this fund in a "Single Mutual Fund" type of account? Do TOOLS, Account List and click EDIT adjacent to this account name to see if this option is selected. OR, do you already know that you hold multiple funds/securities in the account?
    Also, the 1st link that you posted explicitly states that it maintains cost basis info.

    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    As long as you're not using a single mutual fund account. average cost, or an older version of Quicken, I suggest you use the Mutual Fund Conversion wizard.
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    The Mutual Fund Conversion action is designed EXACTLY for your situation.  The only problem with this action is that if you've been using average cost for your original fund the Mutual Fund Conversion action will mess up your cost basis.  You can avoid that by changing away from average cost for that fund before using that action.  (Backup before, of course.)
    The Corporate Acquisition (Stock for Stock) action will also work, even if you're using average cost, but it works throughout your file so if you have the original fund in some other Account, it will be converted too, even if it's not eligible for the conversion.
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    @“pothole damage”
    The first link you cites errs in not mentioning the MF Conversion option and also errs in stating Home and Business version is required. 
    The second link was initially written in 2007, well before the MF Conversion option was available. 
    If possible, use the MF Conversion option. If not, use the Corp Acquisition approach. 
    In either approach, I would follow up by adjusting the new share count for eac lot to your desired precision (usually 3 or 4 digits after the decimal point). 
This discussion has been closed.