Tax Summary and IRA Distribution

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

Best Answer

Answers

  • 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 
    -- Jim QWin Premier subscription
  • J_MikeJ_Mike SuperUser
    edited February 22
    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.
    QWin & QMac (Deluxe) Subscription User
  • 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_MikeJ_Mike SuperUser
    edited February 22
    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
    QWin & QMac (Deluxe) Subscription User
  • Dom1Dom1 Member
    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.

  • 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."
    -- Jim QWin Premier subscription
  • Dom1Dom1 Member
    Am I supposed to actually change this type on the IRA side?

  • Dom1Dom1 Member
    Also says WithdrwX
  • Dom1Dom1 Member
    That makes sense, Thanks for all the assistance AND to all on this thread.
  • Dom1Dom1 Member
    PS - Just wish it made reference to the distribution instead of contribution :/
  • Jim_HarmanJim_Harman SuperUser
    edited February 22
    [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.
    -- Jim QWin Premier subscription
  • 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.


    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the  Quicken Windows FAQ list
  • Dom1Dom1 Member
    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  :)
Sign In or Register to comment.