Rollover from 401K to Traditional IRA
When I enter a Sold transaction in the 401K account and a Bought transaction in the new IRA my Cost Basis changes as if I actually received cash and used that cash to buy shares.
How do I enter the transaction without affecting my Cost Basis?
Comments
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You don't. You DID sell shares ("check sent" ... that check/cash had to have come from somewhere).
Your cost basis DOES change, as you've described the scenario. That you never had your hands on the check is immaterial ... as your agents (the 401k trustee and the IRA trustee) DID have the cash.Q user since February, 1990. DOS Version 4
Now running Quicken Windows Subscription, Business & Personal
Retired "Certified Information Systems Auditor" & Bank Audit VP0 -
The good news is that cost basis doesn't matter inside a tax-deferred account. All that matters at tax time is the amount withdrawn when a distribution is taken.NotACPA - QW HBRP 2019 said:You don't. You DID sell shares ("check sent" ... that check/cash had to have come from somewhere).
Your cost basis DOES change, as you've described the scenario. That you never had your hands on the check is immaterial ... as your agents (the 401k trustee and the IRA trustee) DID have the cash.Quicken user since version 2 for DOS, now using QWin Biz & Personal Subscription (US) on Win10 Pro.
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It matters for performance reporting ... just not for tax purposes.NotACPA - QW HBRP 2019 said:You don't. You DID sell shares ("check sent" ... that check/cash had to have come from somewhere).
Your cost basis DOES change, as you've described the scenario. That you never had your hands on the check is immaterial ... as your agents (the 401k trustee and the IRA trustee) DID have the cash.Q user since February, 1990. DOS Version 4
Now running Quicken Windows Subscription, Business & Personal
Retired "Certified Information Systems Auditor" & Bank Audit VP0 -
If you want to see the combined performance of the 401k and the rollover IRA, make a customized Investment Performance report that includes just those two accounts.QWin Premier subscription0
