In microsoft.public.money, Don Urbanic wrote:

- quote -

I think you are wrong on this point, and that is the genesis
(couldn't say basis) of your planning. It does not matter what you
did with each contribution to the account. It only matters that your
contributions were pre-tax or post-tax. It would have been nice if
you could have made your post-tax contributions into a separate Roth
account instead, but I know that was/is not always an option.

So before you figure out how to do it in Money, you will need to
figure out what the treatment actually is.

I think you are deemed to take money out of your regular IRAs later
in proportion to all of your regular IRA holdings; it's not
per-account or per-investment.
http://www.investopedia.com/articles...raandtaxes.asp
touches on this, but there are more definitive articles.
http://www.irs.gov/publications/p590/ch01.html#d0e6464
says "Form 8606. You must complete Form 8606, and attach it to
your return, if you receive a distribution from a traditional IRA
and have ever made nondeductible contributions to any of your
traditional IRAs. Using the form, you will figure the nontaxable
distributions for 2006, and your total IRA basis for 2006 and
earlier years. See the illustrated Forms 8606 in this chapter."

I suggest you search for articles that cite Form 8606.


So based on this, what I think you will probably want/need to do is
to have separate category for your after-tax . Then you can generate
a report in Money for those numbers. You still will probably want to
use a spreadsheet, but you should be able to paste the report into
the spreadsheet to make it simpler.

See below.


- quote -

If your financial advisor said that each investment buy is
associated with a given mix of pre- and after-tax contributions,
then , well, maybe you just misunderstood.


- quote -

I am looking for suggestion on how to track cost basis, after moving
proceeds from one retirement account to the other.

Here is the scenario:

- Start with IRA rollovers that are funded with pre-tax (old 401k)
contributions and IRAs that are after tax (non-deductible IRA
contributions).
- Consolidate the after tax contributions into the pre-tax account. (I
didn't think this was possible, but my financial advisor said it was no
trouble).
- When drawing from the IRA, you need to know which monies/investments were
purchased with pre-tax and after tax. You can use this information to draw
after-tax funds (thus letting the pre-tax/taxable investments grow as long
as possible before withdrawal). You also have to know what tax to pay on
what money when it is withdrawn.

What I planned to do In Money 07: Sell all the shares in the after-tax
account and use the proceeds to buy investments in the other (now pre and
after tax) account. In the merged account, the total value of the
transaction is recorded, and becomes the new cost basis for that investment.
However, I have lost the orginal cost basis of the money. Is there a better
way to handle this transaction?

I would like to be able to easily report on the 'true cost basis' for all of
my accounts. Unless there is a better approach, I plan on updating the memo
field in the Buy transactions (e.g. pre-tax, after tax) and using that to
report.

My financial advisor suggested using a spreadsheet, which would work.
However, this does not seem like an uncommon scenario, so Money should have
some provision for support it.

Any thoughts or suggestions are much appreciated!

Don.