diff --git a/packages/desktop-electron/index.ts b/packages/desktop-electron/index.ts
index cecd667e6fe..611855f3542 100644
--- a/packages/desktop-electron/index.ts
+++ b/packages/desktop-electron/index.ts
@@ -554,8 +554,8 @@ ipcMain.handle(
 
       await copy(currentBudgetDirectory, newDirectory, {
         overwrite: true,
+        preserveTimestamps: true,
       });
-      await remove(currentBudgetDirectory);
     } catch (error) {
       logMessage(
         'error',
@@ -563,5 +563,30 @@ ipcMain.handle(
       );
       throw error;
     }
+
+    try {
+      await promiseRetry(
+        async retry => {
+          try {
+            return await remove(currentBudgetDirectory);
+          } catch (error) {
+            logMessage(
+              'info',
+              `Retrying: Clean up old directory: ${currentBudgetDirectory}`,
+            );
+
+            retry(error);
+          }
+        },
+        { minTimeout: 200, maxTimeout: 500, factor: 1.25 },
+      );
+    } catch (error) {
+      // Fail silently. The move worked, but the old directory wasn't cleaned up - most likely a permission issue.
+      // This call needs to succeed to allow the user to continue using the app with the files in the new location.
+      logMessage(
+        'error',
+        `There was an error removing the old directory: ${error}`,
+      );
+    }
   },
 );
diff --git a/packages/desktop-electron/package.json b/packages/desktop-electron/package.json
index 99f34d45d4d..4473931e3ed 100644
--- a/packages/desktop-electron/package.json
+++ b/packages/desktop-electron/package.json
@@ -86,7 +86,7 @@
   },
   "dependencies": {
     "better-sqlite3": "^11.7.0",
-    "fs-extra": "^11.2.0",
+    "fs-extra": "^11.3.0",
     "promise-retry": "^2.0.1"
   },
   "devDependencies": {
diff --git a/upcoming-release-notes/4507.md b/upcoming-release-notes/4507.md
new file mode 100644
index 00000000000..265cac2fdd9
--- /dev/null
+++ b/upcoming-release-notes/4507.md
@@ -0,0 +1,6 @@
+---
+category: Bugfix
+authors: [MikesGlitch]
+---
+
+Allow desktop app to move budget files even when cleanup tasks fail
diff --git a/yarn.lock b/yarn.lock
index 319d30ea0d9..073ffd5ea7a 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -10172,7 +10172,7 @@ __metadata:
     cross-env: "npm:^7.0.3"
     electron: "npm:30.0.6"
     electron-builder: "npm:24.13.3"
-    fs-extra: "npm:^11.2.0"
+    fs-extra: "npm:^11.3.0"
     promise-retry: "npm:^2.0.1"
     typescript: "npm:^5.5.4"
   languageName: unknown
@@ -12425,7 +12425,7 @@ __metadata:
   languageName: node
   linkType: hard
 
-"fs-extra@npm:^11.1.0, fs-extra@npm:^11.2.0":
+"fs-extra@npm:^11.1.0":
   version: 11.2.0
   resolution: "fs-extra@npm:11.2.0"
   dependencies:
@@ -12436,6 +12436,17 @@ __metadata:
   languageName: node
   linkType: hard
 
+"fs-extra@npm:^11.3.0":
+  version: 11.3.0
+  resolution: "fs-extra@npm:11.3.0"
+  dependencies:
+    graceful-fs: "npm:^4.2.0"
+    jsonfile: "npm:^6.0.1"
+    universalify: "npm:^2.0.0"
+  checksum: 10/c9fe7b23dded1efe7bbae528d685c3206477e20cc60e9aaceb3f024f9b9ff2ee1f62413c161cb88546cc564009ab516dec99e9781ba782d869bb37e4fe04a97f
+  languageName: node
+  linkType: hard
+
 "fs-extra@npm:^8.0.1, fs-extra@npm:^8.1.0":
   version: 8.1.0
   resolution: "fs-extra@npm:8.1.0"