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Recording Annunity Investment Income

unknown

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.

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NotACPA

A bit more info needed: How do you have that annuity recorded in Q? Do you have Tax Attributes set for the account?

J_Mike

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

unknown

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.