RMD from Inherited IRA to taxable brokerage

EmKay

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?

intouchwithreality

"HOW ... do you schedule or memorize transactions in an investment account?"

You can't create Reminders directly from investment account transactions. And you can't create Reminders from scratch for many investment transactions. 

But you can create memorized transactions or memorized investment transactions for investment transactions, which can be used to create Reminders. In this situation, I think you want a regular memorized transaction.

Record the RMD transaction in the TO investment account as a Deposit, with the appropriate split lines.

Then:

• Right-click the recorded RMD deposit transaction in the TO account and elect to "Memorize payee".
• Go to Tools > Manage Bill & Income Reminders and initiate the Add reminder dialog. 
• In the first dialog box that appears, select "Scheduled Transaction Group".
• Give the Transaction Group a name, tell it to use the TO investment "Account", then choose a "Due on" date and a "Frequency".
• In the Choose Transactions "Regular" section, put a check mark alongside the memorized RMD transaction you created from the recorded RMD transaction.  Click Save.

The newly created RMD Transaction Group should work pretty much like other reminders (though I think there may be some limitations on editing Transaction Group reminders that call for deleting and re-creating them).

Scooterlam

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

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

EmKay

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

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.

Jim_Harman

If the receiving account is an investing accounts, then in the first bullet above it should be "Memorize investment transaction" not memorize payee.

Jim_Harman

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.