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Fidelity issues with HP-related employee stock (Apr 8, 2024) Question? Email: info@hpalumni.org
After leaving an employer, your shares are generally automatically moved from an employer-paid account at a benefits administrator -- such as the "NetBenefits" division of Fidelity or the "MyBenefits" division of Merrill Lynch -- to a personal account at a different division of the same financial conglomerate. (Merrill Lynch calls the two accounts "Employer Sponsored Plan" and "Individual Investor Account.") The new account will use a different website, login, and account number.
Since your employer is no longer paying for the account, you will probably be billed an annual fee (which may be higher than you might expect.) Lot-and-cost data for your lots should have been preserved if you move between "benefits" and "retail" divisions of the same brokerage.
However, if you move the shares to a different brokerage, the shares of each company will be moved in a single lot -- you will have to use your own records to enter date and purchase price for each lot into the second broker's system.
Contact: If you have an existing HP 401(k) or personal brokerage account at Fidelity, go to http://netbenefits.com and use your existing username and password. Otherwise, call 1-800-457-4015 (If no password, keep hitting #.) (Outside US 1-508-787-9902 collect.) Fidelity (Members advise that local Fidelity offices are focused on sales.)
Cost Basis. can you correct your broker's records to include lot-by-lot cost basis data?
Online. "How to Change Your Cost Basis Information. You can make these
changes online and they are reflected in your account that day."
https://www.fidelity.com/customer-service/how-to-change-your-cost-basis-info
"A
few years ago after talking to Fidelity I was asked to scan and email
the original purchase-date-and-cost documents. Within a couple of days
the cost basis info had been updated for all the different shares.
(Including the splits and spinoffs for my original HP shares, which were
missing the cost basis info when transferred from Computershare to
Fidelity)."
--David
Watch out for Fidelity "Tax Reporting
Statement" wording. Fidelity's version of IRS form 1099-B may
have a section with this heading, which has some words underlined:
"Long-term transactions for which basis is not reported to
the IRS..."
At first glance, this implies that those transactions do not have to
be reported to the IRS. However, that is not the case.
It should read
"Long-term transactions for which basis is not reported to the IRS by
Fidelity..."
HPInc/HPE split. Fidelity used 48.85% instead of HPE's suggested 47.15% cost basis ratio for the HP-to-HPE split. (If you wish, you can adjust that value in cell H59 of the "Data" tab of HPAA's Pre-2001 spreadsheet.)
Micro Focus. In 2019, some members received computer generated bills from the IRS related to how Fidelity reported the 2017 HP-breakup transactions to the IRS:
- Seattle Spin Co transaction: Fidelity reported only the Proceeds on this transaction (1099-B column 1d) to the IRS -- but not the Cost Basis (column 1e) -- even though a cost basis amount is shown on the "2017 Tax Reporting Statement" provided by Fidelity. Buried in multiple, complex footnotes, column 1e is listed among eleven columns that were not actually reported to the IRS for that transaction. Footnote (f) says: "Gain/loss information for this transaction is provided based on information available from the company or other sources regarding the aggregate cash and fair market value of share and other property received on the date of the merger. Consult your tax advisor for information on how to report this transaction on your return." "Although Fidelity makes every effort to provide accurate information, please bear in mind that you, the taxpayer, are ultimately responsible for the accuracy of your tax returns."
- MFGP cash in lieu and DXC cash in lieu: Fidelity reported only the Proceeds on these small transactions (1099-B column 1d) to the IRS -- but not the Cost Basis (column 1e) -- even though a cost basis amount is shown on the "2017 Tax Reporting Statement" provided by Fidelity.
See: Micro Focus - HPE stock history
References to "National Financial Services LLC" Fidelity account statements mention this company, which is Fidelity's stock clearing subsidiary.
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