Quicken Mac needs a wizard to handle two types of IRA withdrawals & RRIF accts (29 Legacy Votes)

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ozarkcanoer
ozarkcanoer Member ✭✭
edited April 1 in Investments

Quicken Mac needs a wizard to handle two types of IRA withdrawals.

One is a IRA to Roth IRA conversion withdrawal. The whole amount converted is taxable but the amount  transferred into the tax-free Roth IRA account is less any withholding for taxes to IRS or State.

The second is a RMD (Required Minimum Distribution) withdrawal; the amount transferred goes to a taxable account less any withholding for taxes to IRS or State.

It's time-consuming for users to remember what steps to take, especially for the conversion to Roth IRA but a programmed process is simple.

RMDs are common for all taxpayers with IRAs.  Conversions from IRAs to Roth IRAs probably are not as common but still needed so the 1009-R information is produced correctly.

63
63 votes

Under Consideration · Last Updated

Submitted for review Dec 2020 - CTP-7535

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Comments

  • cneal
    cneal Member ✭✭
    edited November 2018
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    The RMD wizard should be able to handle transfer of assests as part of the RMD.
  • Unknown
    Unknown Member
    edited February 2018
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    You have my vote.  Work around is easy but should be handeled from within the IRA account.
  • Tom Strange
    Tom Strange Member ✭✭
    edited January 2018
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    Got my vote also. I'm struggling with handling my RMD. What is the easy workaround?
  • jacobs
    jacobs SuperUser, Mac Beta Beta
    edited November 2019
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    Got my vote also. I'm struggling with handling my RMD. What is the easy workaround?

    Enter your RMD as a Sale in the IRA account, producing a cash balance. Then enter a transaction to transfer that cash to the account which was the destination of your RMD. If that was a cash account, like a checking or savings account, you're done. If that account was another investment account (including a money market fund), then do a Buy transaction to reflect what you purchased.

    If you had your financial institution withhold taxes on your RMD, then the transfer transaction I describe above become a split transaction: the full amount is the amount of your RMD withdrawal, the tax withheld goes to your federal (and/or state) tax category, and the remaining balance goes to the transfer account.
    Quicken Mac Subscription • Quicken user since 1993
  • cneal
    cneal Member ✭✭
    edited November 2018
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    The RMD wizard should handle transfer of stocks and bonds as part of the RMD.
  • ninaz
    ninaz Mac Beta Beta
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    This also needs to deal with QCD Qualified Charitable Deduction from an IRA. That is money given directly from an IRA to a charity. Currently it shows up as cash in your account and does not show where the money has gone or deduct the amount from net worth.
  • ozarkcanoer
    ozarkcanoer Member ✭✭
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    Disappointed that 2 years has passed without Quicken Mac getting this enhancement.  There must be plenty of users who are required to take RMDs annually.
  • jacobs
    jacobs SuperUser, Mac Beta Beta
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    @ozarkcanoer They could build an "RMD Wizard" to make it easier or more straightforward, but is there something that you simply cannot accomplish currently? My post 4 above this from last year explains how, for most users taking a RMD, you can enter what happened in Quicken.

    The developers have a list of hundreds of feature requests, and most of the larger ones they seem to tackle are for things Quicken Mac cannot do instead of enhancing how to do things it can already do. We could have 50 users post what they think are the most important issues and not have any agreement, so the developers have to figure out which things will have the broadest impact or solve the most egregious problems.

    Quicken Mac Subscription • Quicken user since 1993
  • ozarkcanoer
    ozarkcanoer Member ✭✭
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    @jacobs What you wrote is one view.   I do RMDs for three accounts yearly by using the manual process cheat-sheet which you so kindly outlined but since I don't have any other update request for Quicken that's higher priority I'm still disappointed.

    Now if they created a scripting tool - that might allow me to do the work for RMD steps once to reuse and would help others with different issues.  Is that on their list of hundreds?  

    I don't mean to argue with the person who did make things easier for me three times a year. Cheers
  • jacobs
    jacobs SuperUser, Mac Beta Beta
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    @ozarkcanoer And I didn't mean to suggest your desire for this functionality isn't valid or important. If it came across that way, I apologize. What I was trying to do was explain that among the many things the community of Quicken Mac users have asked for, the developers have prioritized functionality that has no work-around and/or that a large number of users have been clamoring for.  I can't say you shouldn't be disappointed if this is something you really want; I can only try to explain why. And I assure you, I and many fellow Quicken Mac users share with you frustration that the developers haven't been able to make progress on more features over the past few years.
    Quicken Mac Subscription • Quicken user since 1993
  • ozarkcanoer
    ozarkcanoer Member ✭✭
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    @jacobs We are good. And united by using software that would be hard to lose and so happy that Quicken can now set their own course for the future.
     
    I used to work for a software company that had had a couple different large corporate owners, and for a too brief period was independent with a venture capital firm that had invested.  Now it's back as a division of an international company.  Better to be the decision makers. GO Quicken!
  • jacobs
    jacobs SuperUser, Mac Beta Beta
    edited August 2023
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    [duplicate]

    Quicken Mac Subscription • Quicken user since 1993
  • jacobs
    jacobs SuperUser, Mac Beta Beta
    edited August 2023
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    I'd like to expand on the need for some way to handle RMD (and Roth Conversion) withdrawals from a traditional IRA or 401k account. Many Quicken users are past the age where they need to take withdrawals from their IRA accounts annually, and many are doing Roth conversions to reduce their future taxes in old age. But Quicken Mac lacks any facility for doing such a withdrawal and having it show up in the Tax Schedule report. It needs one!

    Currently, a user needs to do some contorted gymnastics to post a sale in their IRA account, transfer the funds to a non-IRA account, and show that amount as taxable income from a retirement account:

    (a) In the IRA account, create a transaction to record the Sale of the security, creating a cash balance in the account.

    (b) In a checking, savings or non-retirement investment account, create a transaction to Transfer the cash out of the IRA account into the receiving account. If federal and/or state taxes were withheld at the time of the sale, the transaction is a split, with one (or more) lines for the taxes withheld and one for the gross amount of the IRA sale.

    These two steps get both accounts to have the correct dollar amounts: the IRA account is back to a zero cash balance, and the receiving account has the correct cash received. But because Quicken Mac does not include IRA account transactions in the Tax Schedule report, the amount of the RMD -- which is taxable income -- does not show up on the Tax Schedule report. So the user needs to know or figure out some work-around tricks:

    (c) In the same transaction in the receiving account which does the transfer, add two more split lines: (1) Use Category "Personal Income:Taxable IRA Withdrawal", which is assigned to the proper 1099-R tax line for the Tax Schedule report, with the amount of the total RMD withdrawal. (2) Use category "Adjustment" or "Transfer" for the negative of the same amount, because those categories are not included in any report.

    (d) The transfer transaction with the splits must originate in the checking or receiving account, not the IRA account; if the split to record the income is in the IRA account, it won't show up in the Tax Schedule report because the Tax Schedule report bypasses IRA accounts. 

    It should be apparent that step (c) is not intuitive and is clearly a hack to make things work. And step (d) is not intuitive to users accustomed to linked transfers being able to be entered in either of the accounts involved.

    Note: there is currently another work-around for (c): make the transfer split also have a category of "Personal Income:Taxable IRA Withdrawal". We've been told Quicken management is going to remove the ability to have transfers (cash flow transactions) which also have categories (income/expense transactions) because it violates the rules of accounting -- but this loophole currently still remains in Quicken. Since we've been told this loophole will be removed, this can't be the recommended procedure for Quicken Mac users to use. 

    [Merged Post]

    Quicken Mac Subscription • Quicken user since 1993
  • jeff.hecht
    jeff.hecht Member ✭✭
    edited July 2023
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    When I asked for information on minimum required distribution specifically for the Mac edition, I am referred to answers for the Windows edition. Until I found this discussion, I was not aware that the Mac edition did not provide a straightforward way to cope with what can be a rather complex tax issue, especially for those of us who have recently started receiving IRA payments.

    [Merged Post]

  • garysmith87
    garysmith87 Member ✭✭✭✭
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    When I asked for information on minimum required distribution specifically for the Mac edition, I am referred to answers for the Windows edition. Until I found this discussion, I was not aware that the Mac edition did not provide a straightforward way to cope with what can be a rather complex tax issue, especially for those of us who have recently started receiving IRA payments.
    You can also find this discussion, which has "real life" screenshots to help.

    https://community.quicken.com/discussion/7902160/help-with-rmd-adjustment


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  • Marc
    Marc Member ✭✭
    edited July 2023
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    Thanks for the input. I do hope quicken fix this oversight. Now that I went though and made new transaction and deleted the old ones, how do I change the cleared status to a green check mark? In the past I thought you could just click on the status and it would rotate through the options, so the next time I reconcile the bank account they don't show up as unreconciled.

    [Merged Post]

  • jacobs
    jacobs SuperUser, Mac Beta Beta
    edited July 2023
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    @Marc One click on the empty Clr box creates a blue check mark; then Option-click to turn it to a green check mark.

    [Merged Post]

    Quicken Mac Subscription • Quicken user since 1993
  • Marc
    Marc Member ✭✭
    edited July 2023
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    Option Click. Ahh. thank you

    [Merged Post]

  • jacobs
    jacobs SuperUser, Mac Beta Beta
    edited July 2023
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    Adding another use case here: a user who transfers some money from a traditional IRA (or 401k) account to a Roth IRA account. Roth conversions are taxable income, even though the transfer of funds is between two retirement accounts. So just like the example above, a user currently has to create a "trick" transaction to create taxable income in the Quicken tax report:

    In a checking account (or any non-retirement account), create a transaction with an Amount of zero. In the splits tab and add two split lines: (1) Use category "Personal Income:Taxable IRA Withdrawal", enter the amount of the Roth conversion as a positive number; and (2) Use category "Adjustment" with the same amount as a negative number.

    What's needed for Roth conversions to work without hacks like this is for Quicken to continue to ignore investment income in retirement accounts but create an exception for the category "Personal Income:Taxable IRA Withdrawal"; any use of that category should show up in the Tax Schedule report. 

    [Merged Post]

    Quicken Mac Subscription • Quicken user since 1993
  • PrettyQuickSmitty
    PrettyQuickSmitty Member ✭✭
    edited July 2023
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    register one more vote for an easy way of registering RMD from IRA accounts as taxable income...

    [Merged Post]

  • Brad Kuhn
    Brad Kuhn Member ✭✭
    edited July 2023
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    I finally got around to fixing the IRA Distribution (RMD). Since Quicken for Mac doesn't recognize withdrawals from an IRA for the tax report, QCDs from an IRA don't show up in the tax report.

    [Merged Post]

  • bobc3
    bobc3 Member ✭✭
    edited July 2023
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    Please offer a non-kludge way of doing this

    [Merged Post]

  • jacobs
    jacobs SuperUser, Mac Beta Beta
    edited July 2023
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    Adding to my original post and request for RMDs, as Brad wrote above, there's another use case which users have pointed out: Qualified Charitable Distributions (QCD). With a QCD, an individual is making a withdrawal from from a retirement account to a charitable organization which counts as a charitable deduction is not taxable as income like regular RMDs. Quicken Mac ignores retirement accounts for the Tax Schedule and Schedule A reports, because most activities like dividends and capital gains in a retirement account are correct to ignore because they are not taxable events. As detailed above, it's possible to get a retirement distribution show up on the tax reports, but it requires a hack of an entry. QCDs add another wrinkle, because the tax report should be able to show the amount of retirement income which is taxable (regular distribution) and non-taxable (QCD). 

    Quicken Mac needs a way to enter a Qualified Charitable Distribution withdrawal in a retirement account which shows up on the 1040 tax report as a QCD, just as there needs to be a way to enter RMD withdrawal from retirement accounts which show up on tax reports.

    [Merged Post]

    Quicken Mac Subscription • Quicken user since 1993
  • Sharon kazel
    Sharon kazel Member
    edited July 2023
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    I agree, this feature needs to be added.

    [Merged Post]

  • MontanaKarl
    MontanaKarl Member, Mac Beta Beta
    edited July 2023
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    jacobs

    said:

     With a QCD, an individual is making a withdrawal from from a retirement account to a charitable organization which counts as a charitable deduction.

    There is another recent topic in which I clarify QCDs.  What @jacobs is saying above is incorrect.  A QCD from an IRA as part of an RMD is not, repeat, not a charitable deduction!  The tax benefit is in fact better than a deduction in that a QCD does not count as ordinary income in your 1099-R for your RMD.  You can NOT get a deduction as well as an exemption from income tax on the QCD portion of an RMD.

    You may have no benefit itemizing deductions over the larger senior standard deduction... but whether standard or itemized, the QCD distribution is non-taxable...whereas any other portion of your RMD is ... hence the topic of this thread.
    [Merged Post]

    Quicken user since 1990, MacBook Pro M2 Max on Ventura 13.6.7 • Windows 11

  • jacobs
    jacobs SuperUser, Mac Beta Beta
    edited July 2023
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    Thanks @MontanaKarl. I corrected my post in that other thread and forgot to update this one; I've updated it now. You are correct that a QCD is not a charitable deduction.

    But there still needs to be a way to track it in Quicken such that it can be reported on your taxes as a non-taxable RMD. Users can partly do this on their own by creating a category for non-taxable RMDs, but I don't believe there's a tax line to assign such a category to because there is no line for QCDs on a Form 1040. (You must report your full IRA distribution on line 4a, and then report the full amount minus QCDs on line 4b.

    So, as this thread details, there needs to be a way in Quicken to enter RMDs, and then as this issue adds, Quicken needs to provide a way to distinguish regular (taxable) from  QCD (non-taxable) distributions, and have them appear properly on tax and income reports.  

    [Merged Post]

    Quicken Mac Subscription • Quicken user since 1993
  • Catherine
    Catherine Member ✭✭
    edited July 2023
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    > @jeff.hecht said:
    > When I asked for information on minimum required distribution specifically for the Mac edition, I am referred to answers for the Windows edition. Until I found this discussion, I was not aware that the Mac edition did not provide a straightforward way to cope with what can be a rather complex tax issue, especially for those of us who have recently started receiving IRA payments"
    I fell into the same trap - got some answers related to setting a tax schedule to an Account. That dropdown does not exist in Quicken for Mac. Fundamental difference - wouldn't have wasted my time if we could filter for version (Mac or Windows) on the Support Page.

    [Merged Post]

  • Charles P
    Charles P Member
    edited July 2023
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    I have a similar problem with Windows Premier. Under Shares Sold (with Federal Tax withheld), I enter Proceeds to and select my bank. The next option shows a possible entry for "Commission" only, with no option for Federal Tax withheld. I am hoping the Mac work-around here helps. A Quicken fix is in order!

    Charles

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  • MontanaKarl
    MontanaKarl Member, Mac Beta Beta
    edited July 2023
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    Charles, please post any issues with QWin in one of the many QWin forums / threads. Almost nothing works the same in QMac as QWin, so bringing up WIndows issues here will only confuse some readers…and will also not reach your target audience (Windows users).

    [Merged Post]

    Quicken user since 1990, MacBook Pro M2 Max on Ventura 13.6.7 • Windows 11

  • Sandy Kraft
    Sandy Kraft Member ✭✭
    edited July 2023
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    Adding a vote for this. Seems like this is a very common use case that should be more easily addressible. It's counter-intuitive to follow the instructions above to go the the receiving (non-ira) account to do a transfer when the money is being transfered out of the IRA into the brokerage or checking acccount.

    [Merged Post]