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I have two accounts in Fidelity:

  • Account A: Personal account

  • Account B: Rollover IRA account (Rolled over from former 401k accounts)

I have purchased a specific Fidelity Mutual Fund through both accounts. The fund usually returns some dividend every quarter. For both accounts, for this fund, I have set "Manage Dividends" settings to "Reinvest in Security."

I can see the dividend history in Account B. The dividend line items appear in the "Purchase History" as "Cost Basis: $0.00" and "Cost Basis Per Share: $0.00".

I do NOT see any dividend line items in Account A. Why is that?

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  • 2
    Have you tried asking Fidelity?
    – littleadv
    May 13 at 15:40
  • 1
    You don't see the dividend line items at all in Account A, or you don't see them with $0 cost basis?
    – Craig W
    May 13 at 16:18
  • Is account B a traditional (pre-tax) IRA? That would explain zero cost basis, since all money will be taxable on distribution.
    – void_ptr
    May 13 at 16:20
  • Updated question. In Account A, I do not see any dividend line. Account B is a Rollover IRA from my former 401k accounts.
    – Arun
    May 13 at 17:02

1 Answer 1

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I can imagine 2 possibilities.

  1. Your dividends are being deposited into your account as cash. If this is the case, you'll have to contact Fidelity to determine why they aren't being reinvested as per your setting.
  2. You are using the 'average cost' cost basis method for the mutual fund in Account A, so the dividends are being reinvested, but they are being folded into the existing lot that you originally purchased, hence no separate line item.

Either way, looking at the activity history of Account A should tell you what's going on.

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