Recording Annunity Investment Income

Unknown
Unknown Member
edited October 2018 in Investing (Windows)
I would like to know how you can record an annuity Investment income (distribution) where the balance in the annuity account is reduced and the income is recorded with federal tax.

Comments

  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited October 2018
    A bit more info needed:  How do you have that annuity recorded in Q?  Do you have Tax Attributes set for the account?
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • J_Mike
    J_Mike SuperUser ✭✭✭✭✭
    edited October 2018
    The procedure for recording distributions from an annuity are the same as for distributions from an IRA or a 401k.
    See this link for the setup;
    https://getsatisfaction.com/quickencommunity/topics/faq-best-way-to-handle-distributions-from-ira
    QWin & QMac (Deluxe) Subscription
    Quicken user since 1991

  • Unknown
    Unknown Member
    edited February 2017
    1 Right click on your annuity account in the account side bar.  Select Edit/Delete account.

    2 Select Tax Schedule at the bottom of the screen. Make sure "Transfers Out" is selected as 1099-R:Total IRA taxable distribution.

    3 In your annuity account, perform a SELL transaction for the amount and shares from your annuity.  Do NOT use the SELLX transaction type.  The SELL transaction will give you a cash balance in your annuity account.

    4 In the annuity account select a transaction type of Cash Transferred Out of Account and enter the amount of the withdrawal (should be the same as the sell transaction amount) and the transfer account.

    5 In the transfer account, you can assign split line items to account for any federal and/or state withholding taxes to come up with the actual amount you received in your account less taxes withheld.

    The reason you cannot use a SELLX transaction is that for some reason Quicken will not recognize it as a taxable event in the Tax Planner.  Using the SELL transaction allows Quicken to record it as a taxable event and will record it in the Tax Planner.  Also, you must use the Cash Transferred Out of Account and not Withdrawal transaction type.  It will still show as a WithdrwX transaction type in the annuity register.   Some quirks in Quicken.  

    Hope this helps.
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