Some Schwab transactions are NOT getting downloaded

Murali Narayanan

This has been happening for over 4 months.

When I move some positions from my IRA to Roth IRA account (i.e. doing a ROTH conversion), the transactions (Removed from IRA and Added to Roth IRA) are NOT getting downloaded. No issues with other transactions.

I repoted this on this forum a few weeks ago and I just noticed it was closed with no comments. Weird.

Tom Young

When you make the conversion does Schwab create a new account number for you, and them show at their site transactions associated "moving" shares between the old and new account? Is this something that "used to work" but isn't now? If that's the case then I wonder if something has changed at Schwab, and Intuit (aggregator) hasn't picked up on the change.

Because the actual processes behind EWC+ are not well understood, by me at least, I'd say this is something that really needs to be escalated to Official Quicken Support, though I suppose calling Schwab and asking to speak to their "Quicken" IT guy might also shed some light here.

q_lurker

Caveat: I have no expertise on Roth Conversions. I offer these comments for your consideration.

My understanding is that conversions from traditional to Roth IRA are taxable events - the amount converted is subject to tax since it was not taxed when the income was originally contributed to the traditional IRA. As such, I don't see this type of conversion being a Shares Transferred (Removed and Added) type of event. Rather I would see it in Quicken as Shares Sold / Cash transferred / Shares bought.

The follow up then becomes does that impact or relate to the transactions that Schwab is producing. How are they showing the transactions in their record-keeping? How are they reporting the taxable 'income'? Do they show the individual lots of the securities owned? Do they show an acquisition date for the various lots? Did the acquisition date change through the conversion?

It would be conceivable to me that they do report some sort of Shares Converted activity, but they have no specific mechanism to translate that activity into Quicken transactions, thus you get no downloaded transactions and need to create your own manual entries.

Murali Narayanan

Thanks for good comments from both Tom and q_lurker. Here are my responses:

1. I already have an IRA acct and a Roth IRA account. When I do a conversion (either from schwab.com or calling Schwab), the position gets moved from the IRA to Roth IRA. The price of the stock times the number of transferred shares gets reported as income. Until a few months ago, when I downloaded the transactions, they were "Removed" from the IRA account and "Added" to the ROTH account. I do have to manually change the price after the transfer into the ROTH IRA account so that my income calculations are correct at tax time. Since the big schwab download fiasco a few months back, Quicken no longer downloads these account transfers.
   
2. q_lurker's suggestion is an excellent one. I will manually "sell" the position in IRA and "buy" the same position in my ROTH IRA.
   
3. A related issue that I submitted to Quicken community: When I create an investment transaction report with a filter based on the action "Added", any transaction post 8/1/2022 don't show up. Totally bizarre.

Jim_Harman

This is somewhat unrelated to the transactions not being downloaded, but for a Roth conversion in addition to recording a sale of the shares in the traditional account and transferring the cash, you need to move the cash through a taxable account in Quicken. If you don't do this, the tax implications of the conversion will not be recorded correctly. See this Idea post for more info.

https://community.quicken.com/discussion/7864626/improve-handling-of-ira-distributions-including-qcds-and-roth-conversions

Murali Narayanan

Thanks. Will check out the link. I was planning to "sell" the stock in the IRA account at a sale price of $0 thus not impacting the cash in the IRA account and "buy" the same stock for the price at which the conversion happened and "adjust" the cash as a misc expense. But I realize, if I did that, it will impact the net worth.

Net: "Remove" from IRA and "Add" to Roth IRA seems to be the right thing to do. Will continue to do that manually until the download issue gets resolved.

Good/insightful discussion. Thanks to all of you.