Accounting for IRA Distributions -- still not working

I'm adding this question to a previous thread that was closed. I can see how you did the split transaction in the destination bank account to subtract taxes. I think what you're saying is you have to record as a deposit, with no direct transfer linking between the IRA account and the bank account. If I record the gross distribution as a transfer from account to account, then I'm left with a remaining uncatagorized amount equal to the gross distribution, which is not messes everything up. So I think you're saying I have to record the transfer as disconnected account withdrawal and deposit, not a transfer?

Best Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    "But if the gross distribution is recorded as a transfer, it cannot be categorized as income so that I can include it as income on a report."

    That's not correct.  You can show the transfer as a form of "income" on reports, like a Spending report.  Simply add the IRA as a "Category" using the reports customization feature.  The dollars out of the IRA will show up in the Income section of the report.

Answers

  • pauljasmine
    pauljasmine Member ✭✭
    I understand your example. But if the gross distribution is recorded as a transfer, it cannot be categorized as income so that I can include it as income on a report. I’d just have to run one of the reports that shows transfers.
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser, Windows Beta ✭✭✭✭✭
    The Tax Summary Report will show this as a transfer, but it is included in your overall income at the bottom of the report. The Tax Schedule Report will show this correctly as 1099-R data.
    Make sure you have your IRA tax schedule transfers out set to "1099-R:Total IRA taxable distrib." and this will work.

    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser, Windows Beta ✭✭✭✭✭
    edited January 2020
    I just noticed there are actual tax line items for taxes withheld from IRA distributions.
    I hadn't noticed these because I take the easy way out and have no taxes withheld from my distributions. Instead, I file quarterly estimated taxes. Much easier for me. Withholding is optional, not required.

    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    "But if the gross distribution is recorded as a transfer, it cannot be categorized as income so that I can include it as income on a report."

    That's not correct.  You can show the transfer as a form of "income" on reports, like a Spending report.  Simply add the IRA as a "Category" using the reports customization feature.  The dollars out of the IRA will show up in the Income section of the report.
  • pauljasmine
    pauljasmine Member ✭✭
    Great, thanks for the response!
This discussion has been closed.