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Tax Summary and IRA Distribution

Dom1

Using: Windows Premier Subscription

Never used the tax summary before, for an IRA distribution is the report supposed to display the gross amount of the distribution, net amount or is it supposed to show the amount of tax already taken by the brokerage?

Thanks

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Accepted answers

Jim_Harman

Cash transferred out of account looks correct. If the tax line item is also correct, I don't know why it is asking about the tax year. Perhaps it is giving you an opportunity to record the distribution for last year for tax purposes even though it hit the books this year. In any event, I would pick 2019 on that contribution dialog and not worry about it if the reports look correct.

All comments

Jim_Harman

What the report shows depends on how the transaction was entered in Quicken.

Usually it is best to enter a transfer of the gross amount to your taxable account (checking or whatever) and split the transaction at the receiving end to show the tax withholding. Then the deposit in the receiving account will show the net amount as it should, and the report will show the gross distribution as well as the tax withholding

J_Mike

QWins' Tax Summary Report and Tax Schedule Report will both report the taxable distribution (usually the gross) and the fed and state taxes withheld. This is basic information needed for tax preparation and should match the FI's Form 1099-R.

QWins' Tax Planner will also report this same info - except for state tax withheld.

markus1957

J_Mike said:

QWins' Tax Summary Report and Tax Schedule Report will both report the taxable distribution (usually the gross) and the fed and state taxes withheld. This is basic information needed for tax preparation and should match the FI's Form 1099-R.

QWins' Tax Planner will also report this same info - except for state tax withheld.

The report can do what you describe but it will not do it by default. The report reflects the manner in which the transaction and/or account is set up to report tax lines and categories as described by @Jim_Harman . As for tax planner, if the transaction is assigned with appropriate tax lines/categories, it will show all taxes withheld.

J_Mike

Here is a link to a FAQ on recording an IRA distribution in QWin:

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

Dom1

I've tried this a number of different ways but I'll only provide the latest as the others did not work BUT please note the NOT OK at the bottom of this post along with the attached message.

Entering on the taxable checking account side.
$5,000 Deposit,
-$500 Fed Tax
-$87.50 State Tax

OK - I have to select the adjust button on the split screen to arrive at the correct amount of $4,412.50 hitting the check register otherwise the full $5,000 hits the check register.

OK - IRA looks OK with a $5,000 transfer

OK - Tax summary shows both the - $500 Fed and - $87.50 State taxes

NOT OK - Also receive the message below pertaining to IRA contribution which doesn't seem correct based on this being a distribution and not a contribution.

Image: https://us.v-cdn.net/6031128/uploads/editor/rb/lylfsh0qq0cd.png

Jim_Harman

What transaction is shown in the IRA for the transfer? It should be XOut, not ContribX.

If you go to the Account Details for the IRA and click on Tax Schedule, what tax line item is shown for Transfers Out? It should be "1099-R:Total IRA taxable distrib."

Dom1

Am I supposed to actually change this type on the IRA side?

Image: https://us.v-cdn.net/6031128/uploads/editor/hd/wjkd4vw3a3qy.png

Dom1

Also says WithdrwX

Jim_Harman

Dom1

That makes sense, Thanks for all the assistance AND to all on this thread.

Dom1

PS - Just wish it made reference to the distribution instead of contribution

Jim_Harman

[See my earlier answer at the top of this discussion]

Also see this related discussion
https://community.quicken.com/discussion/7801225/401k-contribution-made-for-last-year
where the poster was having the opposite problem - he wanted to be able to specify the tax year but was not being prompted.

I did not try it, but I think you don't get the tax year dialog if you follow the instructions in the FAQ @J_Mike posted above exactly and enter the transfer in the checking account as a transfer FROM the IRA, not starting in the IRA account.

mshiggins

From C. D. Bales;

"NOT OK - Also receive the message below pertaining to IRA contribution which doesn't seem correct ....".

It's an old bug.

To my knowledge, it does no harm, as long as you select the correct year (and in my tests, selecting the wrong year only affects the Tax Summary report, not the Tax Schedule report).

And that dialog should only appear for transactions dated January 1 through April 15.

Dom1

Thanks for the follow-up Jim.

Thanks mshiggins for the info on the message. Always good to know if something is a bug vs me