Vanguard Transaction Confirmation

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Almost there
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Vanguard Transaction Confirmation

Post by Almost there » Tue Mar 12, 2019 9:17 pm

As I'm getting ready doing my taxes and waiting for HRB's Arizona update, I took a second look at the Transaction Confirmation for my first RMD in December 2018.

The confirmation only states the following:
Transfer from and to
Shares transacted
Share prices
Amount of transfer

What it doesn't indicate:
That it was an RMD transaction and balances prior and after the transfer.

Is this normal for other financial institutions too?

livesoft
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Re: Vanguard Transaction Confirmation

Post by livesoft » Tue Mar 12, 2019 9:29 pm

I don't look at transaction confirmations. I look at the 1099-R. The IRS won't know what the RMD value is because of all the complicated rules anyways. You (the taxpayer) reports truthfully and honestly whether they withdrew enough to meet the RMD that they themselves calculated.
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AlohaJoe
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Re: Vanguard Transaction Confirmation

Post by AlohaJoe » Tue Mar 12, 2019 9:34 pm

Almost there wrote:
Tue Mar 12, 2019 9:17 pm
Is this normal for other financial institutions too?
Yes, it is normal.

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cheese_breath
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Re: Vanguard Transaction Confirmation

Post by cheese_breath » Tue Mar 12, 2019 9:36 pm

There's no such thing as an RMD transaction. There's just withdrawals. If you've set up an RMD schedule with VG, they'll make withdrawals for you according to the schedule. But you might have already taken your entire RMD from your FIDO or TIAA IRA. VG has no way of knowing that.
The surest way to know the future is when it becomes the past.

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Almost there
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Re: Vanguard Transaction Confirmation

Post by Almost there » Tue Mar 12, 2019 9:43 pm

All my IRAs are at Vanguard and I just took one withdrawal of the whole amount. I guess somehow the IRS knows that I did the withdrawal because they received a notification from Vanguard. In addition, it shows up in my income taxes I’ll file with them.

livesoft
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Re: Vanguard Transaction Confirmation

Post by livesoft » Tue Mar 12, 2019 9:46 pm

You have not indicated that you got your 1099-R for this. Did you?
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cheese_breath
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Re: Vanguard Transaction Confirmation

Post by cheese_breath » Tue Mar 12, 2019 9:46 pm

VG tells Uncle Sam how much you withdrew, period. It's up to you to tell if you met the RMD or not.
The surest way to know the future is when it becomes the past.

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Almost there
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Re: Vanguard Transaction Confirmation

Post by Almost there » Tue Mar 12, 2019 11:01 pm

Yes I received my 1099-R.

livesoft
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Re: Vanguard Transaction Confirmation

Post by livesoft » Wed Mar 13, 2019 2:34 am

Almost there wrote:
Tue Mar 12, 2019 11:01 pm
Yes I received my 1099-R.
Your 1099-R is the notification that both you and the IRS received from Vanguard.
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celia
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Re: Vanguard Transaction Confirmation

Post by celia » Wed Mar 13, 2019 3:08 am

livesoft wrote:
Tue Mar 12, 2019 9:29 pm
The IRS won't know what the RMD value is because of all the complicated rules anyways.
cheese_breath wrote:
Tue Mar 12, 2019 9:46 pm
VG tells Uncle Sam how much you withdrew, period. It's up to you to tell if you met the RMD or not.
No, the custodians tell the IRS how much you withdrew and what your RMD was each year. They also have to report the year end balance, contributions/rollovers, and distributions each year for each IRA you own. They’ve been doing this every year since you first opened an IRA, even in years you did not have any transactions in your IRAs.

It is not reported on a 1099-R but rather in a data file the custodians are required to send to the IRS each year.

sport
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Re: Vanguard Transaction Confirmation

Post by sport » Wed Mar 13, 2019 3:39 am

The RMD question has been answered. However, I also find it annoying that Vanguard's new confirmation format does not show the new number of shares after a purchase or distribution. V clearly has that information, so why not show it on the confirmation page?

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Almost there
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Re: Vanguard Transaction Confirmation

Post by Almost there » Wed Mar 13, 2019 9:04 am

Sport, the following info was on the RMD confirmation:

From transfer Account Name
To transfer Account Name
Date of transaction
Account Number
Shares transmitted
Share price
Amount

But this was in December.

sport
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Re: Vanguard Transaction Confirmation

Post by sport » Wed Mar 13, 2019 10:35 am

Almost there wrote:
Wed Mar 13, 2019 9:04 am
Sport, the following info was on the RMD confirmation:

From transfer Account Name
To transfer Account Name
Date of transaction
Account Number
Shares transmitted
Share price
Amount

But this was in December.
Yes that is the basic info that must be included. However, they don't show how many shares are left in the fund. Similarly, if the money is going into another fund, there is another confirmation for that fund that does not show the new number of shares in that fund. It would not cost anything to include that info. V used to show this, until they changed the format. IMO, they fixed something that was not broken and made it worse.

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Almost there
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Re: Vanguard Transaction Confirmation

Post by Almost there » Wed Mar 13, 2019 3:48 pm

Sport, in my original post, I wrote:
What it doesn't indicate:
That it was an RMD transaction and balances prior and after the transfer.
I wrote to Vanguard and complained that the transactions weren't complete since they didn't indicate beginning and ending balances and total share quantities.

They gave me the following info which helped me obtaining the transactions I wanted.

Go into your A/C and choose:
Balances and holdings
Balances by date
Choose the date
Hit Submit

I first chose the day prior to the transfer, then the day I did the transfer and then the day after.

Finally I have all the info, but I feel I shouldn't have to do that. Why don't they indicate the beginning balance, $ transferred out, shares and number of shares in A/C and ending balances in the first place?

sport
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Re: Vanguard Transaction Confirmation

Post by sport » Wed Mar 13, 2019 3:52 pm

Almost there wrote:
Wed Mar 13, 2019 3:48 pm
Sport, in my original post, I wrote:
What it doesn't indicate:
That it was an RMD transaction and balances prior and after the transfer.
I wrote to Vanguard and complained that the transactions weren't complete since they didn't indicate beginning and ending balances and total share quantities.

They gave me the following info which helped me obtaining the transactions I wanted.

Go into your A/C and choose:
Balances and holdings
Balances by date
Choose the date
Hit Submit

I first chose the day prior to the transfer, then the day I did the transfer and then the day after.

Finally I have all the info, but I feel I shouldn't have to do that. Why don't they indicate the beginning balance, $ transferred out, shares and number of shares in A/C and ending balances in the first place?
We are in agreement.

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Almost there
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Re: Vanguard Transaction Confirmation

Post by Almost there » Wed Mar 13, 2019 6:16 pm

So anyone who agrees should contact Vanguard. I wrote to them to voice my opinion.

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celia
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Re: Vanguard Transaction Confirmation

Post by celia » Fri Mar 15, 2019 11:22 am

Almost there wrote:
Wed Mar 13, 2019 3:48 pm
Why don't they indicate the beginning balance, $ transferred out, shares and number of shares in A/C and ending balances in the first place?
I am one who disagrees. Putting all you list on every confirmation statement would make them almost unreadable, in my opinion. I would rather look at the big picture and I could always ‘zoom in’ on a particular transaction when I am online. The value of the account or fund is irrelavent on the day before or after the transaction.

How would your confirmation statement look if you sold part of Fund X to buy Fund Y and one or both of the funds had a distribution on the same day (ie, the share price dropped in addition to market movement and the number of shares changed)?

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