Since everything not on the 8606 will be taxable, traditional cost basis
doesn't mean much and the 8606 value means everything. I'd get the best
handle on that with a transaction report of transfers/buys from outside the
IRA, not with investment cost basis reporting.

"Pleonasm" <Pleonasm[at]discussions.microsoft.com> wrote in message
news:B06FF3E2-5526-40E1-8A7E-F5C8456FD2D0[at]microsoft.com...
- quote -

Microsoft Money 2005 Deluxe appears to add reinvested dividends and capital
gains to the initial purchase price of a mutal fund when computing the cost
basis for a traditional IRA. However, because no tax is paid on dividends
and capital gains within an IRA, these sums should be excluded from the cost
basis because they represent asset appreciation which is only taxed when
withdrawals begin. In other words, the cost basis for an IRA is only equal
to the sum of the contributions, exclusive of appreciation (see IRS Form
8606).

How do you correctly establish and maintain the cost basis of a traditional
IRA within Money?

Thank you for your assistance.