Quicken Community is moving to Single Sign On! Starting 1/22/21, you'll sign in to the community with your Quicken ID. For more information: http://bit.ly/CommunitySSO

RMD from Inherited IRA to taxable brokerage

I found this guide to entering RMD transactions from a closed conversation from 2010, on this community:
"Set the tax attribute "Transfers Out:" for the IRA account to "1099-R:Total IRA taxable distrib."
Go to the destination account - the MM Acct.
Enter a Deposit transaction - scroll down to the Cash Transactions at the end of the transaction list to find Deposit.
Select Split in the transaction window and record 3 split entries;
The first split is the gross distribution with the category indicating a transfer from the IRA Acct.
The second and third entries are the fed & state withholdings - with appropriate categories.
The net of this transaction is the net deposit to the MM Acct.
Schedule this transaction for your monthly distributions.

You will want to enter these transactions into the register prior to downloading from your FI."

Unfortunately, this doesn't work when the RMD is going to the MM fund of a taxable brokerage, because I cannot do SPLITS on the MM fund side, I guess? Plus, I can't created memorized transactions or reminders, so I have to remember this, every month?

Is there a better way to do this?

Best Answer

Answers

  • Scooterlam
    Scooterlam SuperUser ✭✭✭✭✭
    edited July 2019
    I believe the basic process you quoted above is still good in later versions of QW. 

    As a first approach, in order to get access to the split transaction feature, you could  move the RMD from the inherited account to a spending account, such as a savings or checking account.  In the spending account, you will have access to the split lines to record you tax expenses in the appropriate tax categories. Also, I assume that memorized transactions would also work.  

    From the spending account, if you wish, you can transfer excess cash back to a brokerage MM.  This would be my first approach, as it properly records tax expenses from a spending account.

    The other approach could be to setup a linked checking account to your brokerage account.  In the account details dialog there is a check box to create this.  Doing so will move cash to the linked checking account.  The linked checking account has the split transaction feature.   You will want to search the community on the "ins and outs" of using a brokerage "linked checking account" and how it handles cash from MM funds.   Please ensure you backup your quicken file before doing this.  

    I've no experience in adding a linked checking account to a mature brokerage account.  But, I just did this on a test account and it created a mess (crazy wrong balances).   Perhaps another community member who has experience in this approach can contribute.



  • mshiggins
    mshiggins SuperUser ✭✭✭✭✭
    EmKay said:
    I found this guide to entering RMD transactions from a closed conversation from 2010, on this community:

    I'm assuming you mean this post:

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

    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the  Quicken Windows FAQ list
  • EmKay
    EmKay Member ✭✭
    Okay - I went back over this, slowly, no longer assuming that I couldn't do splits on transactions in my (non-single-MF) brokerage account. I got that part working.

    HOW, however, do you schedule or memorize transactions in an investment account?
  • Bob_L
    Bob_L SuperUser ✭✭✭✭✭
    I have an income reminder set up for my RMD as an auto enter deposit to another brokerage account.  Works fine!  Then when the download comes for the money market purchase, the cash needed is sitting there.
    Quicken Premier Subscription, Windows 10 Home
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    If the receiving account is an investing accounts, then in the first bullet above it should be "Memorize investment transaction" not memorize payee.
    QWin Premier subscription
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited July 2019
    intouchwithreality said:
    "If the receiving account is an investing accounts, then in the first bullet above it should be "Memorize investment transaction" not memorize payee."

    In my Q2019 R19.55, right-clicking a Deposit investment account transaction offers the choice to "Memorize payee". Presumably because that transaction will be recorded in the"Memorized Payee List", rather than the "Memorized Investment Transaction List" as is the case for many investment transactions.
    Sorry, you are correct. I was confused because simple cash transactions - Deposit, Withdraw, and WriteChk - say Memorize Payee but as you note other investing transactions including XIn and XOut say Memorize Investment transaction and are saved in the Memorized Investment Transaction list.

    Now that you mention it, I see that the investment vs cash transactions are in separate sections of the dropdown list in Enter Transactions.
    QWin Premier subscription
This discussion has been closed.