US Stock market drop - effect on 401k contribution / purchases

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elderwise
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US Stock market drop - effect on 401k contribution / purchases

Post by elderwise »

Hello,

I understand in tax deferred accounts, there is no cost basis because there is no need due to deferred status.

However if i am dumping $500 per paycheck into my 401k account, will I get more VG total stock if it drops more the next few days? How would I know if (unlike VG taxable where it shows the basis) how many shares were purchased with the last paycheck contribution amount $XXX etc.

Thanks!
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ResearchMed
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Re: US Stock market drop - affect on 401k contribution / purchases

Post by ResearchMed »

elderwise wrote: Tue Jan 30, 2018 2:24 pm Hello,

I understand in tax deferred accounts, there is no cost basis because there is no need due to deferred status.

However if i am dumping $500 per paycheck into my 401k account, will I get more VG total stock if it drops more the next few days? How would I know if (unlike VG taxable where it shows the basis) how many shares were purchased with the last paycheck contribution amount $XXX etc.

Thanks!
There is still a cost basis in tax-deferred accounts.
You can see the cost basis if you click on the name of the fund in your "balances and holdings".
(It doesn't always display the same way, and I'm not sure why.)

But you can also click there, on the "transaction history", and you'll see each buy/sell of that fund.

If you look in the overall "cost basis" list, you'll also see the "cost basis", but that will include all buys/sells, and also includes reinvested dividends/gains.

There just aren't any tax consequences that involve the "cost basis" within tax-deferred accounts.

RM
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Edie
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Re: US Stock market drop - affect on 401k contribution / purchases

Post by Edie »

In your account, there should be a place to look at transactions. The purchase transaction should list how many shares were purchased.
BigMoneyNoWhammies
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Re: US Stock market drop - affect on 401k contribution / purchases

Post by BigMoneyNoWhammies »

Just for clarification, you're talking about putting $500 in and immediately buying the Vanguard TSM mutual fund, and are concerned about # of shares based on change in price when the transaction is processed at EOBD?
livesoft
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Re: US Stock market drop - affect on 401k contribution / purchases

Post by livesoft »

elderwise wrote: Tue Jan 30, 2018 2:24 pm... will I get more VG total stock if it drops more the next few days? How would I know if (unlike VG taxable where it shows the basis) how many shares were purchased with the last paycheck contribution amount $XXX etc.
This is a great question.

In my old 401(k), the recent transactions were clearly listed on the login page.

In my spouse's 401(k), it takes about 10 mouse clicks in the right places to find the list of transactions. It seems the 401(k) provider wants to make it look like magic that one's 401(k) is growing. On the login page, it only has a dollar amount of the 401(k) value and no information at all about what the client is invested in. Somewhere else it has the dollar-amount used from a paycheck, but not what it was invested in and certainly no number of shares and no share price and no dates. One has to click on "details", then on "More details", then on "Even more details." And even then one doesn't see what one wants. Then one clicks on "Download to spreadsheet." Only then can one see the transactions.
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euroswiss
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Re: US Stock market drop - affect on 401k contribution / purchases

Post by euroswiss »

livesoft wrote: Tue Jan 30, 2018 4:43 pm
elderwise wrote: Tue Jan 30, 2018 2:24 pm... will I get more VG total stock if it drops more the next few days? How would I know if (unlike VG taxable where it shows the basis) how many shares were purchased with the last paycheck contribution amount $XXX etc.
This is a great question.

In my old 401(k), the recent transactions were clearly listed on the login page.

In my spouse's 401(k), it takes about 10 mouse clicks in the right places to find the list of transactions. It seems the 401(k) provider wants to make it look like magic that one's 401(k) is growing. On the login page, it only has a dollar amount of the 401(k) value and no information at all about what the client is invested in. Somewhere else it has the dollar-amount used from a paycheck, but not what it was invested in and certainly no number of shares and no share price and no dates. One has to click on "details", then on "More details", then on "Even more details." And even then one doesn't see what one wants. Then one clicks on "Download to spreadsheet." Only then can one see the transactions.
Yes, mine is set up much the same way and it is a drag to have to go through that much trouble each time. However, we have to realize that most (the vast majority) of 401 participants just want the bottom line, assuming they even care enough to log on... so, it makes sense that they focus on that summary info on the homepage. Unfortunately, this means us “deeper diggers” have to go through some extra steps. Makes sense to me.
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triceratop
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Re: US Stock market drop - effect on 401k contribution / purchases

Post by triceratop »

I effected the following thread title change: affect -> effect.

See also: Misuse of adverse when averse was meant
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CyclingDuo
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Re: US Stock market drop - effect on 401k contribution / purchases

Post by CyclingDuo »

elderwise wrote: Tue Jan 30, 2018 2:24 pmI understand in tax deferred accounts, there is no cost basis because there is no need due to deferred status.

However if i am dumping $500 per paycheck into my 401k account, will I get more VG total stock if it drops more the next few days? How would I know if (unlike VG taxable where it shows the basis) how many shares were purchased with the last paycheck contribution amount $XXX etc.
Yes, with DCA (dollar cost averaging) such as your automatic monthly contributions from your salary, when the NAVPS (net asset value per share) is up, your $500 buys fewer shares, and when it is down your $500 buys more shares.

Check your recent transactions as it will list how many shares of each fun was purchased with your $500 (and will include fractional share portions as well). Usually listed like something such as units/shares, price, employee contribution, employer contribution, and the total amount for that transaction.
Last edited by CyclingDuo on Wed Jan 31, 2018 10:40 am, edited 1 time in total.
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Topic Author
elderwise
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Re: US Stock market drop - affect on 401k contribution / purchases

Post by elderwise »

BigMoneyNoWhammies wrote: Tue Jan 30, 2018 2:44 pm Just for clarification, you're talking about putting $500 in and immediately buying the Vanguard TSM mutual fund, and are concerned about # of shares based on change in price when the transaction is processed at EOBD?
Yes, actually its VINIX not VTSAX on my work 401k.
Topic Author
elderwise
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Re: US Stock market drop - affect on 401k contribution / purchases

Post by elderwise »

livesoft wrote: Tue Jan 30, 2018 4:43 pm
elderwise wrote: Tue Jan 30, 2018 2:24 pm... will I get more VG total stock if it drops more the next few days? How would I know if (unlike VG taxable where it shows the basis) how many shares were purchased with the last paycheck contribution amount $XXX etc.
This is a great question.

In my old 401(k), the recent transactions were clearly listed on the login page.

In my spouse's 401(k), it takes about 10 mouse clicks in the right places to find the list of transactions. It seems the 401(k) provider wants to make it look like magic that one's 401(k) is growing. On the login page, it only has a dollar amount of the 401(k) value and no information at all about what the client is invested in. Somewhere else it has the dollar-amount used from a paycheck, but not what it was invested in and certainly no number of shares and no share price and no dates. One has to click on "details", then on "More details", then on "Even more details." And even then one doesn't see what one wants. Then one clicks on "Download to spreadsheet." Only then can one see the transactions.
livesoft, thank you.Yes i figured it out, was a royal PITA, i had to go down several levels (MassMutual Retire Smart) IDK why they make it so hard to just see the cost basis / purchase amount / shares @ etc.It was under account statement, investment summary..

VG where i have 403B from a previous employer, and my roth is much easier (layout / website wise).

the dip barely lasted a day? lol so much..for more VG lol.
Topic Author
elderwise
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Re: US Stock market drop - effect on 401k contribution / purchases

Post by elderwise »

triceratop wrote: Wed Jan 31, 2018 9:52 am I effected the following thread title change: affect -> effect.

See also: Misuse of adverse when averse was meant
My english is not that great :oops:

thanks,
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