Feature Request: Stock transfer type ("rollover")

david.reitter's Avatar

david.reitter

20 Jan, 2020 09:48 PM

Like many people working for large US corporations, a significant portion of my salary (far more than half!) is paid in stocks, either as restricted stock or as stock options. They vest according to a vesting schedule. MD has no good way to account for this at this point -- all I can do easily is treat vesting stock like salary.

I would like to keep track of my exposure. If my company awards, say, $500k in stock, to be paid out over the next five years, then this creates a concentrated exposure to a single security. When rebalancing assets, this needs to be taken into account.

I can, of course, create an account for unvested equity, and assign it a value, which then updates according to stock prices. But there is no elegant (or even automatic) way to transfer stock out of the unvested equity account into a normal brokerage account. At vest time, no sale occurs (necessarily), but the tax basis is set and funds are withheld for income tax. Funds are not withheld for state/local taxes, but a tax liability is created and tracked.

Here's what happens to the account:

Once:
5-year Stock Award: 500 shares
Every month:
Sell [vesting] . 100 shares
Xfr: value of 37 shares --> Federal Income Tax
Xfr: value of 10 shares --> State/Local Income Tax
Xfr: value of 10 shares <-- Tax Liability
Xfr: value of 63 shares --> Brokerage Account

In actuality, those 63 shares aren't actually sold, but directly transferred to the brokerage account.

I'm not sure if it would make sense to have functionality for accounts with a vesting schedule, like there is for mortgages. The rules are probably somewhat different for restricted stock vs. stock options -- I don't know.

What might make more sense is to create an interface to store a pattern of a few transactions, with variables and simple arithmetic contained, and have that pattern triggered either manually or by the transaction that occurs in the brokerage account. I might try doing that with the Python interface today.

  1. Support Staff 1 Posted by Maddy on 22 Jan, 2020 02:23 PM

    Maddy's Avatar

    Hi David,
    Thanks for the suggestion for improving Moneydance! I've filed a ticket in our ticketing system with your suggestion, so the developers will be looking into it.

    Please let us know if we can be of further assistance!

    --
    Maddy, Infinite Kind Support

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