Simplest way to handle IRA -> Roth conversion

We need more info.

What version of Quicken? What year?

db

Dan-

It's Q2008 Premier.

"Shares transferred between accounts" will do it, no?

But I'm guessing you'd like the tax liability to be reflected in the event. I'm interested in how folks do that as well. I have transferred some stock from an IRA to a Roth this year as well. In the categories window, though, Q does not permit assigning a tax form to a transfer. It does permit the account itself to be specified as tax deferred, and transfers - in or out - to be associated with a tax form. I had correlated transfers out with the

1099-R. But no 1099-R item appears in my tax reports or in the tax planner. Anyone know why?

Don't mean to hijack the thread. Hoping I'm clarifying the question....

-Ron

To clarify a bit, I've noticed that when using the "Shares transferred between accounts" transaction, what actually shows up in the registry of the donating account is "shares removed" and what shows in the receiving account is "shares added." (The memo fields are annotated by Q with "Xfr to:..." and "Xfr from:..." remarks.) I suppose since, technically there's been no transfer transaction registered, the 1099-R association in the account settup never kicks in. So how to make it do so...?

(Using Q2008P)

Where is "shares transferred between accounts"? How do I get to it? I use Quicken Premier 2008.

Where is "shares transferred between accounts"? How do I get to it? I use Quicken Premier 2008.

Where is "shares transferred between accounts"? How do I get to it? I use Quicken Premier 2008.

Where is "shares transferred between accounts"? How do I get to it? I use Quicken Premier 2008.

How do you do a "shares transferred between accounts"? I can't find it in

Correct.

You need to sell the shares in the old account, transfer the cash to the new account, and buy shares there.

Gary, you've got the IRA set up as an investment account, right? In the transactions register, click on Enter Transactions and scroll the listbox down. Be aware of what I said above, the "transfer" will actually produce a shares removed action in the original account and shares added action(s) in the target account. (There will be as many entries in the target account as there are lots being moved, so as to preserve the basis.)

John, understood about selling and "re-buying," but won't that change the basis? Not good for tracking ROI, etc. I guess Quicken is not yet sophisticated enough to compute both the tax liability and maintain performance history when doing an IRA=> Roth conversion in kind. You can sense that from the help file, which fails to provide detailed focus on such a transaction.

-Ron

If you are simply transferring 100% of one account to the other - you can rename the account - deactivate the existing downloads - create the new downloads.

Oilcan

-----Original Message----- From: Ron [mailto: snipped-for-privacy@comcast.net] Posted At: Monday, November 10, 2008 8:19 PM Posted To: alt.comp.software.financial.quicken Conversation: Simplest way to handle IRA -> Roth conversion Subject: Re: Simplest way to handle IRA -> Roth conversion

Gary, you've got the IRA set up as an investment account, right? In the

transactions register, click on Enter Transactions and scroll the listbox down. Be aware of what I said above, the "transfer" will actually produce a shares removed action in the original account and shares added action(s) in the target account. (There will be as many entries in the target account as there are lots being moved, so as to preserve the basis.)

John, understood about selling and "re-buying," but won't that change the basis? Not good for tracking ROI, etc. I guess Quicken is not yet sophisticated enough to compute both the tax liability and maintain performance history when doing an IRA=> Roth conversion in kind. You can sense that from the help file, which fails to provide detailed focus on such a transaction.

-Ron

"Oilcan" wrote in news:5AEE9B8F015B48729C4F55F4388BD1B1 @AnthonyPC:

I just instructed Citibank/Smith Barney to do just that, transfer 100% from a traditional IRA to a Roth. Now there is about $1.50 left in the old account, and the 13K (was >20) is transferred. I guess I will be better off to handle it as a sell/buy. Oh, the hassles in getting this done ... I name the (dis)organization so others can avoid them.

And this creates the 1099-R data...how? Anyway, doesn't apply to me, where I convert a portion in kind each year from the IRA to the Roth. (Trying to keep the marginal tax bracket minimal.) -Ron

I don't export from Quicken into Turbo Tax. I am not concerned what Quicken shows as 1099-R data as I use what is provided to me from the issuer. I am able to trace the numbers on the 1099-R which is good enough for me.

Oilcan

-----Original Message----- From: Ron [mailto: snipped-for-privacy@comcast.net] Posted At: Tuesday, November 11, 2008 4:32 AM Posted To: alt.comp.software.financial.quicken Conversation: Simplest way to handle IRA -> Roth conversion Subject: Re: Simplest way to handle IRA -> Roth conversion

And this creates the 1099-R data...how? Anyway, doesn't apply to me, where I convert a portion in kind each year from the IRA to the Roth. (Trying to keep the marginal tax bracket minimal.) -Ron

A side comment: it is unrelated to Quicken. But it is about the idea of converting your IRA to Roth a bit each year so as to stay in the same tax bracket.

I was doing the same thing in prior years. But this year I decided that there will be a significant increase in tax rates some time in the near future. I am over 70.5 years old, taking out my MRDs, which boosted my income and my taxes. So I finally did the entire conversion this year while the tax rates are lower than they are likely to be for years to come. I'll pay a BIG bundle in taxes next April 15, but with a bit of luck and no MRD I may never have to pay taxes again (or at least only small amounts of taxes). And that will be in years when the tax rates will rise, in my expectation.