Traditional to Roth conversion and tax schedule

I did a Traditional to Roth conversion, and am not sure how it should be entered to make the Tax Summary look legit. I've seen many references to Sherlock's long ago answer, but all links I've found are dead.

I sold shares in the Traditional, transferred the cash to the Roth, and bought shares in the Roth account. My accounts look fine (as in the balances in Quicken match the brokerage balances).

However, the Tax Summary lists only Capital Gains for the sale, when I know it's 100% taxable. It also shows dividends in all tax deferred accounts as Schedule B:Dividend income, and other distributions Schedule D:LT or ST, which should not be reported as taxable income. In Account Details, these accounts do have the Tax deferred marked as Yes.

I've been using Quicken since long before I knew what I was doing, so some old accounts may not actually be set up correctly, but AFAIK, they are.

I'm still hanging on to Quicken '17 for Windows.

Best Answer

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited December 2019 Accepted Answer
    [edited]
    Maybe this post will be helpful
    https://community.quicken.com/discussion/7810546/roth-ira-conversion

    I think the issue with straightforward Roth conversions is that both the traditional and Roth accounts are marked Tax deferred, so by default they are excluded from the tax reports. If you include the traditional IRA account in the report you will see the distribution but then you will also see that account's dividends and capital gains, which you do not want.

    The workaround in QPW's post above involves transferring the money to a dummy taxable banking account then to the Roth account, with appropriate Category/tax line item assignments in the taxable account.
    QWin Premier subscription

Answers

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited December 2019 Accepted Answer
    [edited]
    Maybe this post will be helpful
    https://community.quicken.com/discussion/7810546/roth-ira-conversion

    I think the issue with straightforward Roth conversions is that both the traditional and Roth accounts are marked Tax deferred, so by default they are excluded from the tax reports. If you include the traditional IRA account in the report you will see the distribution but then you will also see that account's dividends and capital gains, which you do not want.

    The workaround in QPW's post above involves transferring the money to a dummy taxable banking account then to the Roth account, with appropriate Category/tax line item assignments in the taxable account.
    QWin Premier subscription
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