QM20: Getting IRA Distributions to Appear in the Tax Schedule Report

User251646
User251646 Member ✭✭✭
edited January 2020 in Reports (Mac)
I am having trouble in QM20 getting IRA distributions to appear in the Tax Schedule Report.

I tried to set up my transaction similar to the advice in the QWin FAQ "Best way to handle distributions from IRA". That is, I modeled the taxable distribution using a split transaction in the IRA account with 3 parts and an amount equal to the gross distribution. The first and second splits are categories for the federal and state withholding. The third split is the net distribution with the category indicating a linked transfer to my checking account (i.e. "Transfer:[Checking]"). The tax withholding categories do appear in the Tax Schedule report, but the transfer does not.

I think the solution suggested by the FAQ is to tell QM20 that the transfer from IRA to Checking is tax-related - similar to how the federal and state tax withholding categories are marked tax-related and associated with the "IRA federal (or state) tax withheld" tax lines. But linked transfers don't appear in the QM20 Categories window. Nor does QM20 allow me to "Set the tax attribute "Transfers Out:" for the IRA account to "1099-R:Total IRA taxable distrib." as stated in the WinQ FAQ. Is there a different syntax for QM20?

I am using Quicken Mac Deluxe 2020 (subscription) v5.14.2 under MacOS 10.14.6 Mojave.

Thanks,
Will
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Best Answer

  • User251646
    User251646 Member ✭✭✭
    edited February 2020 Accepted Answer
    Users @glennmacc and @John_M provided a work-around for getting IRA distributions to appear in the Tax Schedule report and QM Budget. This worked for me using QM Deluxe 2020 Subscription v5.14.3 (Build 514.31897.100) under MacOS 10.14.6 (Mojave). The original posts are at:
    https://community.quicken.com/discussion/7867386/quicken-for-mac-v5-14-released/p10

    In case the thread moves, I'll include some of @glennmacc's text:
    I created a split in the transaction with the category "Income: Taxable IRA Withdrawal" (which is a standard - even required - category) which matched the gross distribution amount. I then made an equal and opposite entry in the split and put it in a "fake" category that I only use to balance these transactions called "adjustments - do not show in reports". As you can tell, I never use it in reports, so it essentially disappears. This ensures that the total is zero for this "accounting adjustment"

    @John_M also noted:
    QW seems to have a better way to deal with this. There is a discussion where @Bob_L states, "You should also edit your IRA account and click on tax schedules. Set transfers out to gross taxable distributions." If there were some way of doing this from the investment account, then the Adjustment line would not be necessary.
    https://community.quicken.com/discussion/7850505/how-to-record-distributions-from-an-ira

    Many thanks to @glennmacc, @John_M, and @J_Mike for helping to find a successful work-around. A better approach may be to have QM treat IRAs like QWin.
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Answers

  • User251646
    User251646 Member ✭✭✭
    I also tried creating the transaction in the destination account (Checking) but that didn't make a difference. The FAQ mentions QWin has a "'tax-deferred' shield" associated with IRA accounts, but perhaps that is not be true for QM20.

    My 401K/IRA was originally created as a Savings account as there was no 401K or IRA type account in QM2007. After importing into QM20, I tried to convert it to a retirement account, but such a conversion is apparently not supported.
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  • J_Mike
    J_Mike SuperUser ✭✭✭✭✭
    QWin & QMac (Deluxe) Subscription
    Quicken user since 1991

  • User251646
    User251646 Member ✭✭✭
    edited January 2020
    > @J_Mike said:
    > See this thread for QMac details:
    >
    > https://community.quicken.com/discussion/7326459/transaction-steps-for-rmd-from-an-ira-using-quicken-mac-2016

    I set up the transaction as specified in the IRA QM16 thread. I didn't realize a transaction's category could be different than the transfer. I agree this should work, but the IRA distribution still does not appear under the 1099-R section in the default Tax Schedule report. However, if I select "Summarize by:" Category instead of Tax Schedule/Form, I do see the IRA distribution under Other Transactions, Transfers Between Accounts.

    I'm not sure what is preventing the IRA distribution from appearing under 1099-R. I used the predefined QMac category called "Personal Income: Taxable IRA Withdrawal" which I verified is associated with 1099-R tax form and "Total IRA taxable distributions." tax line.
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  • User251646
    User251646 Member ✭✭✭
    edited January 2020
    The change in Tax Schedule report behavior may be related to the following thread about an update in QMac 5.13:

    https://community.quicken.com/discussion/7864604/reports-not-tracking-categories-with-a-transfer

    I haven't yet been able to find a way to customize the Tax Schedule report to include transactions that are assigned both a category and a transfer.

    I also noticed that although my QMac Budget shows the "Taxable IRA Withdrawal" category as a income source, the amount of income shown is zero rather than the actual amount in the transaction. I presume this is also caused by the IRA transaction having both a category and a transfer.
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  • J_Mike
    J_Mike SuperUser ✭✭✭✭✭
    edited January 2020
    I set up the transaction as specified in the IRA QM16 thread. I didn't realize a transaction's category could be different than the transfer. I agree this should work, but the IRA distribution still does not appear under the 1099-R section in the default Tax Schedule report. However, if I select "Summarize by:" Category instead of Tax Schedule/Form, I do see the IRA distribution under Other Transactions, Transfers Between Accounts.

    I'm not sure what is preventing the IRA distribution from appearing under 1099-R. I used the predefined QMac category called "Personal Income: Taxable IRA Withdrawal" which I verified is associated with 1099-R tax form and "Total IRA taxable distributions." tax line.


    Am a bit puzzled at this point!!!

    I do get the distribution (including fed & state w/h's) reported under the 1099-R header in the default Tax Schedule Report - subtotaled by Tax Form.

    In poking around trying to duplicate your issue, something changed for me??
    Initially the distribution also appeared when subtotaling the Tax Sceduke Report by Category. It has now disappeared when subtotaling by Category - and it does not report as a Transfer. It  still reports when subtotaling by Tax Form.

    FWIW, my "poking around" included temporary changing the tax line assignment for the distribution category to "1099-R:Total IRA gross distrb." and then back to "1099-R:Total IRA taxable distrb."

    At this point have concluded something strange is going on and will do some ,ore "poking around".


    QWin & QMac (Deluxe) Subscription
    Quicken user since 1991

  • J_Mike
    J_Mike SuperUser ✭✭✭✭✭
    @User251646

    Just occurred to me - I created my own category for the distribution "income" (and for the w/h's) as had not noticed the existing category in the default list.

    With all of the recent changes being made in reporting categorized transfers - maybe this is a factor here.

    Back to poking around!
    QWin & QMac (Deluxe) Subscription
    Quicken user since 1991

  • User251646
    User251646 Member ✭✭✭
    I haven't had any luck getting the Tax Schedule report to include my IRA distributions that use categories with a transfer. Can one create a new Tax Schedule report similar to "Reports > Create Transaction Report..."? The create report process has an Advanced tab (added in QMac 5.13) that allows the user to exclude/include transfers that may fix this issue.

    The Tax Schedule report seems to be unique and not based on any of the other reports for which a new report can be created.
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  • User251646
    User251646 Member ✭✭✭
    edited February 2020 Accepted Answer
    Users @glennmacc and @John_M provided a work-around for getting IRA distributions to appear in the Tax Schedule report and QM Budget. This worked for me using QM Deluxe 2020 Subscription v5.14.3 (Build 514.31897.100) under MacOS 10.14.6 (Mojave). The original posts are at:
    https://community.quicken.com/discussion/7867386/quicken-for-mac-v5-14-released/p10

    In case the thread moves, I'll include some of @glennmacc's text:
    I created a split in the transaction with the category "Income: Taxable IRA Withdrawal" (which is a standard - even required - category) which matched the gross distribution amount. I then made an equal and opposite entry in the split and put it in a "fake" category that I only use to balance these transactions called "adjustments - do not show in reports". As you can tell, I never use it in reports, so it essentially disappears. This ensures that the total is zero for this "accounting adjustment"

    @John_M also noted:
    QW seems to have a better way to deal with this. There is a discussion where @Bob_L states, "You should also edit your IRA account and click on tax schedules. Set transfers out to gross taxable distributions." If there were some way of doing this from the investment account, then the Adjustment line would not be necessary.
    https://community.quicken.com/discussion/7850505/how-to-record-distributions-from-an-ira

    Many thanks to @glennmacc, @John_M, and @J_Mike for helping to find a successful work-around. A better approach may be to have QM treat IRAs like QWin.
    Quicken Mac Subscription
This discussion has been closed.