Re: Transaction Question

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In Reply to: Transaction Question posted by Gary Trimmier on November 22, 2004 at 08:43:41:

: Mark,

: One of the portfolios I am tracking is a traditional IRA. After the initial rollover all activity in the portfolio has been internally funded by the IRA. What is the correct method to record account fees. I know the value should be negative, and I am recording the fee against the default cash account, but since the fees are funded by the IRA should the reinvested check box be checked? Also, I am taking a periodic cash distribution, and having income tax withheld out of the default cash account. Currenting, I am recording both as a redemption. Is this correct?

: Thanks,
: Gary T.

Hi Gary,

Yes, you should check the "reinvested" box when paying an account fee out of
the cash account. This will reduce the number of shares in the cash account,
reflecting the deduction of the fee.

Correct, you should record a withdrawl from your cash account as a redemption.
Really, it is one redemption, and part of the proceeds go to you, and part
go to the IRS.

Thanks,
Mark
--
Mark Beiley
Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP/2003

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