Brokerage Sweep Account entries

volvogirl

I set up a new Wells Fargo Brokerage acct and got my stocks moved into it ok. I also transferred in some cash from my regular bank account to get started.

For the cash part I made a new security called WF Sweep instead of letting the cash sit as cash. I guess I did it that way so I could record the interest on the cash? But now I got some dividends on my stocks that are not reinvested in the stock so they went into Cash. They used to send me a check but I guess now they send it to Wells Fargo.

When I enter the Div is there a way to tell it to put it in the Sweep security and not to Cash? Or will I have to make another entry each time to Buy it into the Sweep?

bmciance

It will go to cash. Just make another entry to "purchase" your Sweep account with the cash received.

GeoffG

Don't forget you can use Memorized Investment Transactions to make repeatable entries easier.

Jim_Harman

If you leave the cash and dividends as Cash rather than sending it to the sweep fund, you can record the sweep fund income as a Div from the sweep fund.

[Edited to refer to sweep fund, not sweep account]

q_lurker

I guess I did it that way so I could record the interest on the cash? 

What Jim said applies. You can record the WF Sweep security income as interest or dividends even though you don’t own shares of the security. I’m pretty sure there are ways to record that income in an investment account without specifying a security, but I think using the WF Sweep security will keep the source more clear.

Tom Young

"I guess I did it that way so I could record the interest on the cash? But now I got some dividends on my stocks that are not reinvested in the
stock so they went into Cash."

If it's a true sweep situation - you don't expressly buy or sell the sweep fund - then I wouldn't even bother to track it. For all practical purposes what ever is in the sweep fund plus any actual cash sitting in the account (before it's swept) is simply "cash" and nothing more.

You don't really need a "security" associated with any IntInc entry. Or you an make the entry for interest income as coming from the WF Sweep security if that's what is really creating the income. I wouldn't be surprised if those funds are swept into WF Bank (they pay less interest that way) so you could also use WF Bank in the IntInc entry.

QuickUserPSP

@volvogirl I have several brokerage accounts with Wells Fargo Advisors. Through the years I have had different sweep vehicles.

I think you will need to set up a security for the cash sweep because interest will post to the fund ID but there will be no purchase of shares. The sweep fund will never have a price or balance, but the first time cash sweep interest gets deposited to your account, you will be forced to set up a cash sweep fund.

Here is an example of what the Interest Income transactions look like when they post to the cash sweep funds.

QuickUserPSP

@volvogirl - I forgot to mention that the sweep interest will be reported on your 1099-INT (not DIV) from Wells Fargo Advisors. Instead of sending separate 1099 forms they send a 1099 Combined, which is all tax forms in one report.

volvogirl

What about the dividends on the stocks? Will they be on the WF 1099 consolidated statement or will I still get a 1099Div from the individual stocks?

QuickUserPSP

@volvogirl the dividends will be reported on the 1099 Consolidated Form, in the 1099-DIV section. All tax related forms and summary transactions will be sent on this consolidated form. I called it a "combined" but just looked at the form and the last one I got is titled "2023 Consolidated Forms 1099". It can be quite lengthy, but the good news is that you usually get it by the end of January.

q_lurker

I think you will need to set up a security for the cash sweep because interest will post to the fund ID but there will be no purchase of shares. The sweep fund will never have a price or balance, but the first time cash sweep interest gets deposited to your account, you will be forced to set up a cash sweep fund.

It bears noting that @volvogirl is using QW2013 and not downloading transactions from Wells Fargo (or anyone else). As such, she has a little more freedom to do as she pleases - what fits her needs. While over time, there may be various sweep vehicles, she is not forced to use those.

Rocket J Squirrel

In any case, I prefer to treat cash as cash. Much simpler and fewer transactions than a sweep fund.

mshiggins

@volvogirl if you’re interested in planning your income for cash flow or taxes, you can use income reminders for the interest and dividends transactions. Plus the reminders can be used to create the transactions, eliminating some of the transaction manual entry steps.