Need help setting up Roth IRA investment account/security
I use MD for basic checking/saving accounts and I need to setup my first Roth IRA. I've read through the user guide; it gives good detail on how to enter things, but it doesn't say what to do. Can you point me to some examples? Thanks.
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1 Posted by Tom Freeman on 27 Apr, 2016 05:21 PM
First you want to set up an investment account by going to account > new account and selecting investment.
Do you have current holdings in this account? If you do then you are going to want to enter those holdings into this account. You do this by going to the action button at the top right of the investment register.. Click it and select add security. In the account info box click new security. Enter the name and appropriate information for this security. Repeat for each security you hold in this account..
Now from your last statement you want to make a buy transaction for each holding with the total shares and the total cost basis as the transaction total. Do this for each of your holdings.
Entering your initial holdings will create a negative cash balance in the account. To clear this go to account > edit account. In the edit account window there is a field for initial balance. Enter the amount here to reconcile your investment account's cash balance.
If your broker allows you can also set up online banking to download transactions. You do this by going to online > set up online banking and following the instructions in the set up window.
If you have further questions on setting up the account please let us know.
Tom Freeman
Infinite Kind Support
2 Posted by dlbrett on 01 May, 2016 02:01 PM
Hi Tom, thanks for the reply, I have a couple of more questions. My wife and I each have various retirement investments. When I create the investment account, should it be a single family account, or separate for her and me? Does it matter?
Some of the securities have multiple categories (60/40 balanced fund, stock index fund, etc.). When I add securities, should it be one security for the entire thing, or should I create a separate security for each piece?
I have a 401K and Roth-IRA. Should I create separate investment accounts for each, or enter them as separate securities under a single account?
My Roth-IRA was purchased through our credit union and only has a single investment (it looks like a savings account, see attached capture; I got the 60 month). Most Roth-IRA's I see online have multiple investments underneath them. Is this simply a single security? Do I create it the same as any other security?
When creating the new security for the 401K, MD asks for several things that my credit union didn't provide, so I took my best guess. Can you comment on my guesses?
Security ID:I entered my overall credit union account number....OK?
Security Name: I entered the generic name they assigned (60 MONTH ROTH CONT CERTIFICATE (S50)).....OK?
Ticker Symbol: Left blank
Price: I paid $6500...would it be a single investment of $6500, or 6500 shares of $1 each?
Value Prefix: Left blank
Value Suffix: Left blank
Max. Decimal places: Changed to 2
3 Posted by Tom Freeman on 02 May, 2016 02:00 PM
For each investment account which has its own unique account number you should make a desperate moneydance investment account. This will make it easier if you decide to use on-line connection to download transactions.
You can create the security you can create a sub-type to track the categories.
The Roth and IRA should be their their own accounts.
The Roth appears to be a 60 month CD. You can create a security for this, select CD. It should have a share price of $1 and you buy shares equal to the dollar holding amoiunt. Interest would be a miscinc transaction with the CD as the security.
When entering malformation in any of the boxes, you only need to enter what is appropriate for you. The security ID, is usually the CUSIP # ( a unique security ID # assigned to each security). You can leave this blank. If you download transactions from on-line this is usually auto filled on the download.
Tom Freeman
Infinite Kind Support
4 Posted by dlbrett on 03 May, 2016 01:32 AM
Thanks Tom, I'll try it this weekend.
Don
5 Posted by dlbrett on 14 May, 2016 01:19 PM
Thanks Tom, I think I understand this now. I was confused by what I was creating. When I create the security, I was creating something that I can buy/sell, not entering the actual transaction(s). Once I created the security and then entered the first purchase, it made sense.
By the way, I set up online banking for this account, but it didn't work. I'll start a separate thread for that.
6 Posted by Tom Freeman on 16 May, 2016 01:39 PM
Tom Freeman
Infinite Kind Support
Tom Freeman closed this discussion on 16 May, 2016 01:39 PM.