Improve handling of IRA distributions, including QCDs and Roth conversions

Jim_Harman SuperUser ✭✭✭✭✭
edited April 2022 in Investments (Windows)
As described in these recent posts

and many others, the way Quicken handles taxable transactions in tax deferred accounts is convoluted and confusing, often causing incorrect tax reports and and incorrect data in the Tax Planner. 

The increasingly popular Qualified Charitable Distributions (QCDs) also fall into this category.

Properly designed wizards or Macro transactions to handle these events would be a big help.
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212 votes

Under Consideration · Last Updated

This idea is currently under consideration by our product team. This is not a guarantee that the idea will be implemented, but it is actively being reviewed. CTP-5937



  • Ranger
    Ranger Member ✭✭
    If there were a single macro transaction to make the multiple entries for the annual required distribution, it would be fantastic ! The use of multiple transactions leaves much to be desired and plenty of room for errors.
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Further discussion of the difficulties of entering Roth conversions can be found here
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  • MemphisBBQ
    MemphisBBQ Member ✭✭
    I have been using Quicken since DOS3. When I began withdrawing from my IRA account I found it difficult to get the transactions correct so my report from my broker matched Quicken's calculations. The allocation from the broker included both the transfer to my bank and the amount sent to the IRS for my income tax. My Quicken solution was have one transaction match the amount actually deposited into my bank account and a separate transaction entered for the IRS tax payment as if it were transferred to the bank. Then I created a payment to the IRS for the amount that the broker had sent and I had recorded in the separate transfer. I can do a report at any time for all IRS transactions and they will display for me. No split transactions. I have no Roth transfers, but if I remember correctly, I would have a hard time setting them up to get the transfers correct.
  • chitownhockey
    chitownhockey Member ✭✭✭✭
    The typical transaction for IRA taxable distributions are as follows:

    Set the Account Details of the retirement accounts to > Tax Schedule > Transfers Out:1099-R:Total IRA taxable Distr.

    From the retirement account, sell the number of shares to equal the GROSS amount of your withdrawal.  This will leave a cash balance.

    From the retirement account, use a transaction type of "Cash Transferred Out of Account" for the GROSS amount of your withdrawal, which usually is the cash balance as noted above.

    This will transfer that amount to your checking account and Quicken will automatically tax report the GROSS amount of the IRA distribution.

    From the checking account, locate the transfer transaction.  Split that transfer transaction so that the second line is Taxes: Federal Withholding and use a negative amount for the withholding taxes to the IRS.  You can add subsequent lines for any state or local withholding, as well.

    This results in the NET amount deposited in your checking account.  

    I actually have an Income Reminder setup for the split transaction portion in my checking account which is automatically entered each month.  Then all I have to do is sell the shares in the investment account.

    Easy peasy.  
  • BillG2
    BillG2 Member ✭✭
    RMDs and QCDs are tricky. Errors are easy to make because the IRS forms are misleading. Help from Quicken on at least reporting what was and was not done would be very helpful.
  • Paul Williams
    Paul Williams Member ✭✭✭
    I was searching the Q Community for how to handle IRA QCDs (normally I just don't enter them into Quicken) and taxable transfers from a non-Roth IRA to a brokerage account. Imagine my disappointment after reading is string of comments. :'(
  • BillG2
    BillG2 Member ✭✭
    I've now used the workaround described in the links in Jim_Harman's initial post in this thread. They make it so tax reporting at least hints to the tax preparer that QCDs are used. But now it seems that when I download the posted transactions, expect to match Withdraw transactions and won't work with WithdrawX transactions that are necessary to make the QCDs show up in tax reporting. I agree that having QCD as a wizard or investment transaction type would be a big help.
  • CMRater
    CMRater Member ✭✭✭✭
    I always tout Quicken as the ultimate financial management software.  Not that I am retired have performed a roth conversion and plan to make withdrawels from tax deferred accounts, I am very surprised that Quicken is not Retirement Friendly.

    I would like to hear from Quicken if they plan to address what is a basic feature in the near term as this missing capability is a major flaw/gap in the software!
    Quicken User Since - 1991
  • Paresh Buch
    Paresh Buch Member ✭✭✭
    I support this request. I could use a more retirement friendly version of Quicken.
  • JWQ
    JWQ Member ✭✭
    Hello Quicken,

    It is past time to get on this issue. Please keep up with changes that impact your customers.
  • jwschmalz
    jwschmalz Member ✭✭
    I agree with the commentary. I was not aware of this problem until I started Roth conversions a few years ago. I have not yet begun to withdraw money from my taxable and non-taxable accounts, but after reviewing this thread, I'm certainly not looking forward to tracking it using Quicken. Please update Quicken to support your users.
  • UKR
    UKR SuperUser ✭✭✭✭✭
    There's a related discussion here:
    It seems to boil down to adding a tax line item for Form 1099R: Qualified Charitable Distributions to Quicken.

  • I'm new to IRA withdrawals and QCD's... How do I "vote up" this topic? Yes, it is really needed!
    It appears that not much thought has been given to distributions from IRA's. How to manage meeting RMD (Required Minimum Distributions) especially over multiple IRA accounts (or 401k). Calculating RMD from previous year-end balance...
    I know, I want it all! I would be happy with solving the QCD issue. :)
  • Since1996
    Since1996 Member ✭✭
    For RMD's with existing Quicken, I created an IRA account report that sums up all the balances excluding ROTH and inherited IRA accounts. Then I take that December 31st total and use the IRS tables to calculate the RMD for regular IRA accounts. A short-cut for tax planning purposes:
    but you will have to adjust the answer for the QCD's.
    (I calculate inherited IRA account RMD's separately.)
  • andyc3
    andyc3 Member ✭✭
    As one who has commented several times previously about the inefficiencies and limitations of QB IRA handling I appreciate all of the analyses and suggestions above. QB team needs to do a bottom up systems analysis and re-coding of IRA (of all types) processing, starting with assumptions about correct characterization of IRA accounts to enable withdrawals.QB enforces too many assumptions about how IRAs "should" behave that are not justified by IRS rules/regs or by custodian practices. As many have already pointed out, IRA handling will become increasingly important over time. The analysis that represented IRA rules circa 1990 is siimly too limited for today's IRA options.
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    An additional point on this topic: People now often write checks on their IRAs for QCDs. Apparently there is currently no way to print these checks the way there is with other accounts, you need to write them by hand. 
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  • Tom Scott
    Tom Scott Member ✭✭
    edited February 2022
    I use checks to do my Qualified Charitable Distributions (charitable contributions) from our 2 IRAs. WE support over 30 different charities and have to write checks manually from our IRA accounts. I just spent $60 ordering laser checks for each account. I discovered today that they are useless for this purpose. Please make IRA accounts eligible to have a linked checking account just like a Brokerage account. [Removed - Disruptive]
  • BHTexas
    BHTexas Member ✭✭
    I hope Quicken staff is working on resolving these IRA and QCD issues. As some have already said, there's more than a few of us who have reached this stage in life, have used Q for years and want it to offer simpler ways to handle IRA transfers and distributions. Thanks.
  • Cindi Anderson
    Cindi Anderson Member ✭✭✭
    I don't know where the list is to upvote but definitely Roth accounts need to be separated from non-Roth. Maybe I should have set my Roth's up as non-retirement accounts, but can't change it now.
  • Cindi Anderson
    Cindi Anderson Member ✭✭✭
    There's a tax-deferred yes/no button. Maybe they need to add a third category so there's: tax deferred, tax not deferred, tax already paid
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    @Cindi Anderson note that when creating an IRA account there is an opportunity to specify it as Roth and this affects how the account is treated in the Tax Planner and Lifetime planner.

    Unfortunately there is currently no way to change a Traditional to a Roth account once it has been created.

    To upvote an Idea, go to the top post of the thread and click on the little up arrow under the number.  
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  • FlyerFran
    FlyerFran Windows Beta Beta
    I, too, use QCD's and again request that SoldX & BoughtX transactions be added back for RMD transctions from IRA's.  
  • CeilP
    CeilP Member ✭✭
    I agree that a simple method for RMD distributions is needed, including the ability to copy/paste for monthly distributions. I can't do this now. I have to manually add the transaction each month.
  • dpjenkins23
    dpjenkins23 Member ✭✭
    edited November 2021
    [Removed - Rant]
  • dpjenkins23
    dpjenkins23 Member ✭✭
    edited November 2021
    [Removed - Violation of Community Guidelines]