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From: John Pollard on 2 Apr 2008 12:54
JCO wrote:
> I agree never to let an adjustment occur.

> My understanding is that the previous version of Quicken had
> an error
> and allowed me to make the entries, that I've done. This new
> version,
> fixes this error.

You'll have to be more specific.

> At the same time, my wife has a mutual fund closed
> out at the end of 2007 and fund goes to a new Mutual Fund that
> began
> Jan 2008. So this issue began because I had to create a new
> 401K
> fund, transferred the old to the new, then make weekly
> Investments
> (automatically from her paycheck).

Not clear just what you did here. The individual steps you took
(and what the account types were/are) might be helpful.

> So we are talking about 13
> entries that Quicken treats as a BoughtX incorrectly (in my
> opinion).

If, as you told Dan, you have managed to create a Quicken 401k
account designated as a Quicken "Single Mutual Fund" account
(not possible to do in Q2008, but might have been carried over
from previous version that permitted such a result to occur),
that is the reason you see BoughtX transactions. A SMF account
can not hold any cash, so transfers into the account
automatically create BoughtX transactions. In my opinion, SMF
accounts are never a good idea.

> In reality, the Dollars Amounts (401k amount) never goes into
> my
> checking account so it should not be a "Transfer" (therefore
> resulting in a Cash Bal change of zero).

In the real-world, the funds are "transferred" from your
company's payroll account to your 401k account.

In Quicken, the only logical source of contributions to a
Quicken 401k account is your paycheck. No one is going to
create an "employer payroll account" from which to transfer
their contributions to their 401k account (beggng the question
of how the funds would get into a Quicken "employer payroll
account").

When you setup a Quicken paycheck transaction, the "transfer" to
the 401k account comes from the paycheck itself, but those funds
are never deposited in the Quicken account where your paycheck
is deposited. Trust me: it works.

> The other issue is the matching portion that the company puts
> in. There's no good way for Quicken to do this

Yes, there is. Once again, it's in the Quicken paycheck
transaction (where the Quicken Paycheck Wizard makes it easy to
enter the matching employer amount as a pre-tax deduction...
which also is "transferred" into your Quicken 401k accou)..)

> and I don't want to
> download the numbers (to afraid that will mess other things in
> other
> registers)

It's not necessary to download, though there is not reason for a
download to mess anything up. You don't have to accept all (or
any of) the downloaded transactions if they don't agree with
your approach ... and you can modify downloaded transactions
after they have been accepted.

> I'm not sure I understand what your way (other than a direct
> download) of solving the issue.

There is no magic "solution". But the only other "approach" to
the situation I know of is the "Update 401k Holdings" wizard
(button) that is available in Quicken 401k accounts. I do not
think it will make your life easier, I think it will make it
harder. The only time I might consider using it is if I had a
401k that did not provide me with the number of shares of
securities that I owned.

1.) Don't use Single Mutual Fund accounts. [You can never enter
a Bought transaction in a Quicken account designated as a Single
Mutual Fund account (a designation that may not be visible for a
401k account setup in earlier versions of Quicken.]

2.) Get the contributions "transferred" into the 401k account.
Simplest way: paycheck transaction. Otherwise you can create a
fake transfer (or 2) into the account and designate the 401k
account itself as the source account of the transfer. [If your
401k company provides the contribution transactions as part of
their download, you could rely on just their download to get the
contributions into your Quicken account ... but not all 401k
admins provide the contributions in their downloads.] The
"transfers" of your contributions into the account provide the
cash to make the purchases ... just as they do in the real
world.

3.) Enter (manually or by download) the Bought, Dividend,
Reinvest, etc transactions to acquire the correct holdings.

4.) Use one, or more, Quicken reports to "reconcile" your
account to an external source, like your quarterly statement.

5.) Use Quickens "reconcile" dialog to mark all the appropriate
transactions as "reconciled".

> There has to be a way for and investment that includes an
> employer
> match portion that utilizes the "Bought".

See above.

--

John Pollard
First initial underscore Last name at mchsi dot com
Please reply to newsgroup


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