Quicken vs Fidelity IRA - cost basis wrong

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
User avatar
Topic Author
ps56k
Posts: 892
Joined: Sat Mar 19, 2011 1:28 pm
Location: Chicago area

Quicken vs Fidelity IRA - cost basis wrong

Post by ps56k »

I've been thinking about a Roth Conversation from our existing Fidelity Traditional IRA.
I went to look at the implied taxes based upon the Cost Basis - and stumbled into a problem...

I use Quicken for everything - and never noticed any issues -
as I check the market value + share balances against the various FI balances and accounts - all look OK -

BUT.... now it appears my Fidelity IRA Cost Basis in Quicken does not even come close to the Cost Basis on the Fidelity website
Here are the numbers I am seeing....

Any thoughts on why the numbers are different ????

........ Fund ....... - Q/Fid - Q/Fid ----- Q/Fid
........................... Cost ..... Mkt ........ CG

Fidelity 4in1 fund ...... 61/78 - 104/104 --- 42/26
Fidelity Div ............ 39/84 ---- 77/77 ---- 39/6
Fidelity EM Asia ........ 6/8 ----- 11/11 ------ 5/2
Fidelity Growth ........ 54/81 -- 125/125 --- 71/44
Fidelity Tot Bond ....... 51/62 --- 59/59 ------ 7/2

Total Market value - 378
Total Cost Basis (Quicken) - 314
Total Cost Basis (Fidelity) - 211
PFInterest
Posts: 2684
Joined: Sun Jan 08, 2017 12:25 pm

Re: Quicken vs Fidelity IRA - cost basis wrong

Post by PFInterest »

You may have not correctly input the data in quicken...
marcopolo
Posts: 3488
Joined: Sat Dec 03, 2016 10:22 am

Re: Quicken vs Fidelity IRA - cost basis wrong

Post by marcopolo »

I believe that is because the two are tracking different things.

Since this is an IRA, Fidelity is only considering contribution in the basis. That is all that matters for IRAs.

Quicken on the other hand is tracking basis of your investments, so any dividends or capital gains were reinvested gets added to your basis, making it larger.
As far as I know, this is meaningless for an IRA.

Additionally, in a traditional IRA Fidelity does not know if the contribution you made were deductible or not, so they are all included in the basis. If you are trying to determine what portion of withdrawal/conversion is taxable, then your basis would be just the non-deductible contributions. You have to track this yourself, and report to IRS via form 8606.
Once in a while you get shown the light, in the strangest of places if you look at it right.
User avatar
Earl Lemongrab
Posts: 7270
Joined: Tue Jun 10, 2014 1:14 am

Re: Quicken vs Fidelity IRA - cost basis wrong

Post by Earl Lemongrab »

The only "basis" for an IRA is the non-deductible contributions. The custodian doesn't know or care about those. It's your job to track them via form 8606. When you make a conversion or withdrawal, you will use and possibly adjust that number, again through 8606.
User avatar
J G Bankerton
Posts: 2182
Joined: Thu Sep 14, 2017 3:30 pm

Re: Quicken vs Fidelity IRA - cost basis wrong

Post by J G Bankerton »

Quicken is not what it used to be. I now use it only as a adding machine and ledger.
marcopolo
Posts: 3488
Joined: Sat Dec 03, 2016 10:22 am

Re: Quicken vs Fidelity IRA - cost basis wrong

Post by marcopolo »

J G Bankerton wrote: Mon Nov 26, 2018 2:43 pm Quicken is not what it used to be. I now use it only as a adding machine and ledger.
Not sure what you mean by that. I don't recall Quicken ever tracking non-deductible IRA contributions.
They have not added any noticeably useful (to me) features in a while, but it still seems to be one of the better financial tracking software available.
Once in a while you get shown the light, in the strangest of places if you look at it right.
User avatar
J G Bankerton
Posts: 2182
Joined: Thu Sep 14, 2017 3:30 pm

Re: Quicken vs Fidelity IRA - cost basis wrong

Post by J G Bankerton »

marcopolo wrote: Mon Nov 26, 2018 2:54 pm
J G Bankerton wrote: Mon Nov 26, 2018 2:43 pm Quicken is not what it used to be. I now use it only as a adding machine and ledger.
Not sure what you mean by that. I don't recall Quicken ever tracking non-deductible IRA contributions.
They have not added any noticeably useful (to me) features in a while, but it still seems to be one of the better financial tracking software available.
By ledger I mean an account/check book. Just how much is there at this point in time. Most banks won't do a web connect anymore. I'm trying to switch to Moneydance but that is a pain. I may as well learn excel but that hurts my head.
Alan S.
Posts: 9917
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Quicken vs Fidelity IRA - cost basis wrong

Post by Alan S. »

When you see cost basis and gain or loss in your IRA statements, this is for investment purposes only. It is meaningless for taxes as already explained. Apparently, IRA custodian provide this information solely for helping IRA owners determine whether a particular IRA investment has been profitable or unprofitable. This is very useful information in a taxable account, but is only provided for IRAs because they can.

As indicated by others, the only IRA basis is non deductible contributions made to a non Roth IRA or any regular or conversion contributions made to a Roth IRA.
Post Reply