When you change jobs, you may need to roll over your retirement funds out of your former company's 401(k) plan and into a new plan. In the real world, your funds are closed out of one account and placed in a new account. So in Quicken, you should set up a new account and close out the old account.
When you set up a 401(k) account, you should assign tax dialog line items to transfers in and out of the account. Ordinarily, these assignments reduce your gross salary by the tax-deductible amount that you contribute to your 401(k). When you roll over a 401(k), however, you're transferring money to the new 401(k) account from an another account that has already been contributing to a 401(k) (and therefore you've already taken the tax deduction). It's a good idea to close out the old 401(k) account balance by adjusting it to zero, and enter the transfer amount as the opening balance for the new 401(k) account (or an adjustment if the target account is not a new account).
- Set up your new 401(k) account. To learn more, see Deciding how to track a 401(k)/403(b) account.
- Roll over your data from the old account to the new account, choosing the most appropriate method from the list below.
- My 401(k) provider is changing. I need to update this change in Quicken
- To roll over an existing 401(k) account to a new 401(k) account, set up the new 401(k) account. Make sure to enter 0 as the opening balance.
- Open the old 401(k) account transaction list.
- Click Enter Transaction.
- In the Enter Transaction list, select Transfer Shares Between Accounts.
- In the Transfer Shares dialog, transfer all shares of a security in your 401(k) from the old account to the new account.
- Repeat steps 3 through 5 for each security in your 401(k).
- My real-world information isn't changing. I just want to change the way I track my 401(k) in Quicken
Click the link below which most closely fits your situation:
- Roll over an existing asset account to a new tax-deferred investment account
Open your old asset account and enter a transaction to
transfer the entire balance to your new investment account. You can create the new account when you start the transfer.
- For the new investment account, enter 0 as the opening balance. When Quicken asks if this is a tax-deferred account, click Yes.
- Open the new investment account, and enter transactions to buy the securities for your new 401(k) account.
- Roll over an existing asset account to a new 401(k) account
Open your old asset account and enter a transaction to
transfer the entire balance to your new 401(k) account. You can create the new account when you start the transfer.
- Roll over an existing investment account to a new tax-deferred investment account
- Roll over an existing investment account to a new 401(k) account
Create the new 401(k) account. Make sure to enter
0 as the opening balance.
- Open the old investment account transaction list.
- Click Enter Transaction, and then choose Shares Transferred Between Accounts.
- In the Transfer Shares dialog, transfer all shares of a security in your 401(k) from the old account to the new account.
- Repeat the last two steps for each security in your 401(k).
