recording a roth IRA recharacterization in Quicken

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hudson4351
Posts: 307
Joined: Fri Aug 10, 2007 8:30 pm

recording a roth IRA recharacterization in Quicken

Post by hudson4351 » Sun Apr 24, 2016 8:04 pm

I accidentally contributed too much to my Roth IRA in 2014 (for tax year 2014) and had to recharacterize part of that contribution in 2015 to a traditional, non-deductible IRA. I already handled all of the tax paperwork, but now I'm trying to reconcile my Roth IRA account in Quicken and am stuck on the transactions that transfer the shares from the Roth IRA to my rollover IRA.

When I try to accept the transaction in Quicken's register, I see the following options:

Code: Select all

1. Remove the shares (Remove the shares from the account without affecting the cash balance of the account.)

2. Transfer the shares (Transfer the shares from this account to another account.)

3. Enter a reverse stock split (<description omitted>)

4. Enter a short sale (<description omitted>)
I'm guessing option 2 is correct, because I want the shares in the Roth IRA to end up in my rollover IRA. When I select option 2, I get a new menu that asks me to identify the "Transfer Method". The options are: "First Shares In", "Lot Identification", or "All". Which should I choose? Does it matter? I can't seem to find lot information on Vanguard's website for my Rollover IRA. I'm guessing the shares that were transferred to the rollover IRA were the same ones that I bought when I made the original Roth IRA contribution?

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FiveK
Posts: 5739
Joined: Sun Mar 16, 2014 2:43 pm

Re: recording a roth IRA recharacterization in Quicken

Post by FiveK » Sun Apr 24, 2016 8:54 pm

hudson4351 wrote:The options are: "First Shares In", "Lot Identification", or "All". Which should I choose? Does it matter?
You should choose the shares that were recharacterized, although it is less important in IRAs than in taxable accounts. "Lot identification" is usually best, but given the statement below...
I can't seem to find lot information on Vanguard's website for my Rollover IRA. I'm guessing the shares that were transferred to the rollover IRA were the same ones that I bought when I made the original Roth IRA contribution?
That is a reasonable assumption.

Alternatively, following https://www.bogleheads.org/wiki/IRA_recharacterization, "...treat the conversion as if it never happened, or the contribution as if it was made to the correct type of IRA in the first place." In other words, go back in Quicken to your original transaction and have it go to the correct account in the first place.

hudson4351
Posts: 307
Joined: Fri Aug 10, 2007 8:30 pm

Re: recording a roth IRA recharacterization in Quicken

Post by hudson4351 » Sat May 21, 2016 11:01 am

Does Vanguard even track basis (i.e. specific lot numbers of contributions and withdrawals) in IRAs? I'm looking at the website now and don't see that information anywhere.

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