My employer is going to change to a different 401K Plan Provider. How do I handle that in Q07D? Obviously I will have to create a new 401K account. Not sure if I should show it as a sell of one security from old provider and buy shares of a new security with new provider. Or if I should just do a cash transfer between accounts. Your ideas are appreciated.
Jim
I take it you are not transferring holdings from one real-world account to another, that you will have to sell the holdings in your old real-world account and purchase new holdings in your new real-world account.
If that's the case, I would endeavor to make Quicken reflect what happens in the real-world as closely as possible. And I think that would mean selling all the securities in the old account, transferring the cash to the new account, and purchasing securities in the new account.
One caution: I think that when you transfer cash into a retirement account (no matter what the source of the cash), Quicken will want to treat it as a "contribution" in the new account. I don't know what all of the ramifications of that are, but I think you can avoid them if you are willing to deviate slightly from the intent of duplicating what happened in the real-world.
After you sell all the securities in the old account, use the resulting cash to purchase shares of a dummy security with a $1 price/share. Then tell Quicken to "transfer" the dummy security to the new account using "Transfer shares between accounts"; sell all shares of the dummy security in the new account and use the resulting cash to purchase your securities in the new account.
A few years ago my employer (before I retired) changes 401K providers (Vanguard to Fidelity) I did nothing in quicken. The source account was frozen on some specified date and then the account $' were transferred to the new provider which was also frozen for some short period of time. As I recall where possible the a mutual fund was transferred to from the source to the destination directly. Where this was not possible the mutual fund was sold and the cash was transferred.
At the end of the transfer the new provider was "defrosted" and I was able to go online the new providers website and reallocate the $s in the new 401K to whatever selections were available at the new fund. As for Quicken when the old fund was frozen I stopped any updates and waited for the funds to move from the old to the new provider. When the new 401K was "defrosted" it just set up a new account in Quicken and started updating the new account. I then deleted to old account. I suppose you could save the old for reference but I felt it was not worth the effort. In my case the new provider, Fidelity was just as good as Vanguard as far as fees and support goes. I hope that your new one is as good as the old.
I think it would be very difficult to try and do anything within Quicken until the transfer is completed. If a fund is transferred intact from the old to the new it will most certainly have changed value during the process and there would no way to predict the outcome. Any cash that is transferred will most probably go from one money market account to another.
Since Quicken investment accounts are independent of one another there is no automatic way to reconcile between the two.
Marty
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