Community Homepage
Discussions
Categories
Quicken for Mac
Quicken Lifehub
Quicken Mobile
Quicken on the Web
Quicken for Windows
Support
Quicken Classic
Quicken Simplifi
Getting Started
Community Training FAQs
Using and Improving the Community
Connect and Engage
Announcements & Alerts
Announcements
Alerts, Online Banking & Known Product Issues
Product Ideas
Beta
Home
Quicken Classic for Windows
Investing (Windows)
What Tax Schedule option should I use for RMD's from IRA to Checking Acount
bluzchaser
When I xfer my monthly (12 mo's yearly) RMD distributions to my checking account, I need to assign those transfers as 1099-R transfers. But which 1099-R should I use? I seem to have two options; 1099-R: Total IRA taxable distrb or, 1099-R: Total IRA gross distrb. What's the difference?
Find more posts tagged with
Accepted answers
Bob_L
I believe the 1099 may have both of those lines, but as long as it is just a regular RMD, I would use the taxable one. BTW, be sure to create the transfer in the destination account as a deposit with the transfer as the source (as opposed to creating it as a transfer out in the IRA).
Tom Young
@Bob_L
"BTW, be sure to create the transfer in the destination account as a deposit with the transfer as the source (as opposed to creating it as a transfer out in the IRA)."
Between my wife and I we have only one IRA that requires a minimum distribution - an inherited IRA acquired several years ago. I set the transfer out of the IRA as a 1099-R event and always create the transfer in the IRA itself, and this has worked fine.
Has their been a change somewhere along the line that prompts this recommendation?
markus1957
Check the "Tax Schedule" button in the IRA account details window; it may already be selected to assign transfers to a taxable distribution. If not, you can do it there. In any case, do not do both as you will get a double taxable entry.
If you set up a reminder to track taxes in Tax Planner, configure the reminder transaction as suggested by
@Bob_L
.
markus1957
@bluzchaser
said-
Not sure why the adjacent 1099-R: Total IRA gross distrb. is available as another choice as that is also a taxable option no matter if it is designated as "gross distrb."
The reason is that only the "
1099-R Total IRA taxable distrb" shows up in the Quicken Tax Planner module as taxable income. With the introduction of Roth IRAs, those distributions are not taxable and thus, distributions from Roth IRAs need a tax line that will not trigger taxable income.
All comments
Bob_L
I believe the 1099 may have both of those lines, but as long as it is just a regular RMD, I would use the taxable one. BTW, be sure to create the transfer in the destination account as a deposit with the transfer as the source (as opposed to creating it as a transfer out in the IRA).
Tom Young
@Bob_L
"BTW, be sure to create the transfer in the destination account as a deposit with the transfer as the source (as opposed to creating it as a transfer out in the IRA)."
Between my wife and I we have only one IRA that requires a minimum distribution - an inherited IRA acquired several years ago. I set the transfer out of the IRA as a 1099-R event and always create the transfer in the IRA itself, and this has worked fine.
Has their been a change somewhere along the line that prompts this recommendation?
markus1957
Check the "Tax Schedule" button in the IRA account details window; it may already be selected to assign transfers to a taxable distribution. If not, you can do it there. In any case, do not do both as you will get a double taxable entry.
If you set up a reminder to track taxes in Tax Planner, configure the reminder transaction as suggested by
@Bob_L
.
Bob_L
@Tom Young
I have not checked it recently, but historically there has been a problem with some of the tax reports and/or planner not picking it up correctly. Do you find your method works correctly on all the reports and the planner?
bluzchaser
Thanks Bob L, Tom Young and markus1957. I read each comments/suggestions and used the 1099-R Total IRA taxable distrb option rather than the adjacent 1099-R: Total IRA gross distrb selection. I also added the 1099-R Total IRA taxable distrb in the destination account (transfer in) and the 1099-R Total IRA taxable distrb in the source account (IRA) transfer out. Not sure why the adjacent 1099-R: Total IRA gross distrb. is available as another choice as that is also a taxable option no matter if it is designated as "gross distrb."
Thanks.
markus1957
@bluzchaser
said-
Not sure why the adjacent 1099-R: Total IRA gross distrb. is available as another choice as that is also a taxable option no matter if it is designated as "gross distrb."
The reason is that only the "
1099-R Total IRA taxable distrb" shows up in the Quicken Tax Planner module as taxable income. With the introduction of Roth IRAs, those distributions are not taxable and thus, distributions from Roth IRAs need a tax line that will not trigger taxable income.
bluzchaser
Thanks markus1957 for clearing up the usage of that alternative option. It would really make more sense if the 1099-R Total IRA GROSS DISTRB (meant for Roth IRA), would be changed someway to indicate that option is for ROTH IRA'S, Maybe as 1099-R Total Roth IRA gross distrb? Or some other designation so as to indicate only use for Roth IRA's. and not regular IRA'S.
NotACPA
Q is using the IRS's terminology. Complain to the IRS.
Other's would post complaints here if Q
DIDN'T
use IRS terminology.
Tom Young
@Bob_L
The method I've used has always worked properly for me. The item shows up on the tax report and the income also shows up correctly on a budget report. I haven't investigated beyond that.
Quick Links
All Categories
Recent Discussions
Activity
My Bookmarks
My Discussions
My Drafts
Unanswered
Best Of
