401k disbursement with federal withholding

Question

In my 401K investment account how do I record a disbursement where part of it was wired directly into a checking account and part was withheld for federal taxes.

Bob_L · Accepted Answer

Create a split deposit in your checking account where the first line is the gross amount as a transfer from your IRA.  Then add a second line as an offsetting expense booked to the category that you use for federal income tax withholding.  You should also be sure the IRA is set up to book transfers out as taxable IRA Distributions.  Do that from the Tax schedules  button on the IRA Edit account page.