T Rowe Price Rollover IRAs converted to I Class -- issues

Katherine Jones

Hello,

I'm using Quicken for Windows and am getting updates automatically.

I have been using the app since 1993 and have decades of investment data, most of the investment transaction data being manually entered (only because when I tried to do downloads/imports I ended up with a mess). A lot has changed since 1993, including my understanding of retirement investments, Quicken features, and my understanding of Quicken's features.

T Rowe Price (TRP) establishes one account number for each type of mutual fund/security. I have 13 accounts with TRP. Some accounts are Non-Retirement and some are Retirement Roth IRAs, Traditional IRAs, and Rollover IRAs (rolled over from 401k with prior employers). My investments are in 8 different mutual funds/securities. This means of course that I may have a Traditional IRA invested in their GNMA Mutual Fund as well as a Rollover IRA or non-retirement account invested in their GNMA Mutual Fund.

My question centers around TRP recently converting several of my Retirement Rollover IRA accounts from one security to another where the new security is an "I Class". TWO EXAMPLeS ARE NOTED IN THE PICTURE ATTACHED. You will see that the account numbers remain the same in the Before and After, the securities are similar in focus but not in tickers, and the number of shares may be the same. or different. I've also noted how the Accounts are set up in Quicken from an investment perspective (Brokerage (although there is no cash balance), Tax Deferred, SMF).

Historically, as I've rebalanced my investments, my manual entries have used a dummy transfer account I call MICOR (Make It Come Out Right ) So if I pull $100 from my Capital Appreciation account and allocate $70 into my GNMA account and $30 in my Technology account, all 3 transactions in Quicken are such that the Record Proceeds? field contains the MICOR account. In the end the MICOR account has a $0 balance and life is good.

My question is how best to modify Quicken for the new I Class securities. At first I set them up as Account Type=Traditional IRA, Tax deferred=Yes, and SMF=Yes. I did this because I felt I had an opportunity to set up the new accounts in Quicken the 'correct' way. However, after creating the New Account and the New Security, I realized that the transaction to remove (Sold) the shares from the original account was going to hit the MICOR account but the transaction to add (Bought) the shares to the new Account was not going to require anything in the Record Proceeds fields..... and the MICOR account would not have a $0 balance after the two transactions were entered.

I've also tried to make changes to the Old Account so that it contains the historical transactions with the old Securities and then also will allow me to create manually (or download/import) new transactions with the new Security (I Class). I don't recall exactly what I tried but either it didn't work or I was not able to make the changes to the Account I thought were needed. This is actually my preferred solution if I can find a way to make it work.

Does anyone have suggestions for me? In the long run I would love to be able to use the investment transaction automation available in the app and I also very much prefer to see the history of all shares purchased and sold over time.

Kind Regards,

Rocket J Squirrel

I think the simplest thing might be to make your accounts not Single Mutual Fund. Then you could Remove the old shares and Add the new shares in the same account. Sell & Buy are probably not the right actions despite being sent from TRP.

q_lurker

A lot there to digest.  

Absolute first step -- make sure you have a good backup on hand and continue to make backups as you step through whatever processes you try.

My first reaction - To make the class switch most convenient, do away with the SMF designation within Quicken.  You should then be able to do (manually) a Mutual Fund Conversion whereby (for example) PRWCX converts to TRAIX.  There has been a bug in that MF Conversion process but with some care, it is correctable.  I am not sure if that Conversion bug has been fixed or addressed in recent releases. 

Now you may say - No, TRP requires SMF accounts.  I say TRP may require one Quicken account for each fund but it does not need to be a SMF account.  By manually converting from Class 'old' to Class 'new' in the manner I suggested, you are avoiding the creation of a lot of new Quicken accounts that really are not necessary.  For me, that makes for a cleaner account structure within Quicken.  

Once you have manually made the holding change within the account, you will likely need to then connect the proper Fidelity account (account and fund) to the proper Quicken account.

Be forewarned - any of the in-Quicken type of conversions will generate Add Shares transactions at a one transaction /lot rate.  If you have been buying shares once a month for 30 years plus other reinvestments, that is going to amount to a lot of new transactions across a lot of accounts.  Do you really need all that specificity?  Generally, my take would be yes, for me.  Others would definitely say No.  For them, one Remove PRWCX shares, one Add TRAIX shares would be adequate especially in a retirement account.

Hope this helps and is not confusing.