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Memorize RMD transaction with split for withholding

unknown

Q2019, R17.6, Build 27.1.17.6 on Windows 10 (64 bit). Cannot memorize RMD transaction with splits for withholding. I download the RMD withdrawal from the tax deferred IRA account and transfer the gross RMD to a taxable account using a split transaction recording the fed and state withholding showing the correct net amount transferred. I delete the downloaded transactions which show separate fed and state withholding transactions in the IRA. However I am not able to memorize these transactions and apply them monthly. If I do memorize the RMD distribution, i get duplicate tranaction entries in both the IRA and taxable account. Furthermore, the Tax Summary report never seems to show the correct taxes withheld.

Is there some way to set up a memorized transaction that correctly shows the fed and state withholding without having duplicate entries in the IRA and taxable account. Curiously I also have to deleted both duplicate entries in both accounts to try to get the correct amounts.

Any work around or setting change suggestions to try will be appreciated. I have used Quicken for about 20 years and have always had to spend hours trying to get the tax reporting corrected.

Thanks.

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Comments

Bob_L

The key is to create an income reminder as a DEPOSIT in to the non IRA account with splits to account for the withholdings. So the first line of the deposit split will be a transfer from the Ira account followed by the split lines for the withholding amounts as reductions. You will also of course need a sell transaction within the IRA that created the cash for the transfer,(this can come from the download from the FI).

Edit the IRA account and click the tax schedules button to set up transfers out as taxable IRA distribution.

If your broker downloads a separate transaction for the withholding, then just delete it as you have already covered it in the deposit.

NotACPA

The key is to create an income reminder as a DEPOSIT in to the non IRA account with splits to account for the withholdings. So the first line of the deposit split will be a transfer from the Ira account followed by the split lines for the withholding amounts as reductions. You will also of course need a sell transaction within the IRA that created the cash for the transfer,(this can come from the download from the FI).

Edit the IRA account and click the tax schedules button to set up transfers out as taxable IRA distribution.

If your broker downloads a separate transaction for the withholding, then just delete it as you have already covered it in the deposit.

The key component of Bob L's reply is that the SPLIT, and the tax withholding MUST be done in the taxable account ... as must be the Memorized transaction containing this split

Ps56k2

Just reading and sharing this old posting.... for any upcoming RMD folks -

mshiggins

There is a FAQ post for this topic:

https://community.quicken.com/discussion/7072150/faq-best-way-to-handle-distributions-from-ira

Peggy S

I've set up my RMDs for the coming year with their required amounts and the expected federal and state withholding amounts. This will make my calculations for estimated taxes due much easier. And I set them up as memorized transactions as recommended.

My question is: The amount of the RMD and associated tax withholdings will change every year. When I look at the memorized transaction I don't see any way to update the split amounts. Is there a way to update it other than deleting and re-entering it?

Tom Young

"My question is: The amount of the RMD and associated tax withholdings will change every year. When I look at the memorized transaction I don't see any way to update the split amounts. Is there a way to update it other than deleting and re-entering it? "

No. It's a calculated number based on your age and the balance in the account as of the end of last year. Quicken does have access to the latter number but hasn't been loaded with the various actuarial tables that can get used nor programmed to make this calculation.

Peggy S

I'm sorry, I guess my question wasn't clear. I know how to calculate what my RMD will need to be in 2022. What I don't see is a way to update my recurring reminder with the new amounts of the withdrawal and tax withholding. If I edit the reminder, I only see the total transfer after taxes. Is there a way to manually update the reminder each year, or do I need to delete and re-enter it?

Ps56k2

Just bring up the Reminder - Enter - it shows all the splits on screen -
(do you have the splits in the correct account)
edit the SPLIT amounts - OK -