Mutual Fund conversion prices are WRONG

jca
jca Member ✭✭
I saw some postings that indicated that mutual fund conversion price per share had been fixed (2019) IT HAS NOT. I converted a 401K to a rollover IRA, and the prices for shares varied from $1500.00 to $25,000.00 PER share WAAAAAY off. it looks like that is no fix for it yet so I am painfully going in and manually changing all the share prices.
Pain in the A&*(&s!!
WHEN IS THIS GOING TO BE FIXED????

Answers

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited January 6
    In the Security Details for the old security, was Use Average Cost selected? That will make your cost basis grossly incorrect after the conversion. 

    Also despite what it says in the Help when you click on the "?" in the conversion dialog, when you enter the "Shares of new" in the Mutual Fund Conversion, you must enter the total number of new shares you received, not the ratio of new shares to old. In the "Price per share of new mutual fund" box, you should enter the closing price of the new fund on the date of the conversion.

    Note that the description for the Added transactions will show the effective prices per share of the new tax lots, not today's price. 
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  • jca
    jca Member ✭✭
    I didn't get prompted for any of that, just old fund symbol and new fund symbol and total number of shares
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    What steps did you follow when you converted the 401(k) to the rollover IRA? Did the securities stay in the same account, or did they move to a different account? Did you have the same securities after the rollover, or new ones?
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  • jca
    jca Member ✭✭
    edited January 6
    They moved to a different account. and shares were converted from Admiral to Investor shares - different ticket symbol Even if I had used Average Cost accounting, it doesn't explain how a share price of $80,000.00 could be anywhere near correct
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    So it was both transferring between accounts and converting to a different share class. Was it a different financial institution (FI) also, or is this all at Vanguard?

    What does the FI website show? Were the shares sold in the old account and bought in the new one? This often happens with rollovers, because there are no tax implications. If so, you can enter that in Quicken as Sold in 401(k) - Transfer proceeds to the new account - Bought in the IRA account.

    Or were the shares moved "in kind" and then converted or something? 

    Again, exactly what transactions did you enter in Quicken that led to the incorrect share prices? Did you enter this recently, or several years ago? 
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