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How to record taxable income from a Roth conversion or IRA distribution

denismegan1951

I need to have the transfers out of tax deferred retirement accounts as taxable income. Quicken records the transfer between retirement and checking, but does not post to gross amount before tax deductions as taxable income. I would up adding two accounts to post the taxable transaction and an offsetting transaction to get into my tax schedule One is included and one is not. Any better way?

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NotACPA

re: the Roth Conversion, see QPW's comment here: https://community.quicken.com/discussion/7810546/roth-ira-conversion

Ignore the link in bparker's initial message, it no longer works.

re: IRA w/ds, you need to set the Transfer Out tax attribute to the IRS tax line, and then w/d the GROSS amount of the distribution as a transfer from the IRA to checking. Then, split the deposit in the checking account to reduce it by the amount (if any) of tax withheld by the IRA and change the deposit amount to the NET actually received.
To set the tax attribute, do TOOLS, Account List, click Edit adjacent to the account and click "Tax Schedule"

urbanian

Question: Is this setting available in Quicken for Mac? I can find tax schedule information for categories, but don't see how to do it for accounts? (I have essentially the same issue.)

Chris_QPW

@urbanian You need to post a new question, one where you have selected Quicken for Mac so that the Mac people will see it.

But in general I will bet that Quicken doesn't have the setting above in @NotACPA 's answer, but you should still be able to do what is suggested in the link he provided. As in you should be able to do a transfer from the investment account to some non investment account and use a split with the right categories that are using the right tax lines.

J_Mike

urbanian said:

Question: Is this setting available in Quicken for Mac? I can find tax schedule information for categories, but don't see how to do it for accounts? (I have essentially the same issue.)

Recording retirement distributions in QMac is noticeable different than in Qwin.
In QMac, one assigns a Category to the distribution Transfer.
See this link for details: https://community.quicken.com/discussion/7326459/transaction-steps-for-rmd-from-an-ira-using-quicken-mac-2016

Note that the link refers to QMac 2015/16 but still applies to the current subscription model.