How to enter a check written from an IRA [for Qualified Charitable Distribution from IRA]

Question

There is no provision In an Q IRA to describe a check written directly out  of an IRA from available cash to Charity

Sherlock · Accepted Answer

Quicken does limit the Action pull-down menus of IRA accounts.  I suggest you press Ctrl + N and select the appropriate Cash Transaction option offered in the Enter transaction: pull-down menu.

Frankx · Accepted Answer

Hi @Donald Griffith,

Just curious - which type of account is the IRA - Brokerage, Mutual Fund, Bank, or something else.  I have the following options available in my and my spouses' IRA's.  Do you not have these:

Let me know.  Thanks.

Frankx

Rocket J Squirrel · Accepted Answer

@Frankx a check can be entered into an IRA in Quicken, but Q doesn't handle the tax treatment of QCDs.

Frankx · Accepted Answer

@Rocket J Squirrel

I didn't see anything in the question about that, need to get a new pair of glasses I guess... :D

Frankx

Rocket J Squirrel · Accepted Answer

Did you miss the capitalized word Charity in the OP? :)

Donald Griffith · Accepted Answer

Problem solved The Cntl N and the category now available - solves any category problem and if you have assigned the Q category to rate the withdrawal correctly, and since it is tax free, there is no charity deduction allowed.

Sherlock · Accepted Answer

Vote for: https://community.quicken.com/discussion/7864626/improve-handling-of-ira-distributions-qcds-and-roth-conversions

Frankx · Accepted Answer

Just to be accurate - it is important to note that there is no reporting of a Qualified Charitable Distribution (the correct term is not "Deduction" - because it is a "potential exclusion" from income not a deduction) on IRS Form 1099-R, or on any other IRS information returns.  So anybody who thinks they will see that number on a 1099 form is mistaken.

And while it s true that certain IRA distributions, or portions thereof, that are paid to a qualified charitable organization may be excluded from taxable income if certain requirements are met, the payor (the financial institution, insurance company, etc.) is not required to, or even able to, determine which, or how much of, such payments may be excluded from income.  This is not only because of the payor's inability to know whether the IRA holder meets all IRS requirements, but also because it is clearly the taxpayer's responsibility to make such determinations.

So while it will be extremely helpful for Quicken users to separately categorize such distributions in Quicken so that they are clearly distinguishable from other types of distributions, having them flow to a "tax line" should not happen.

Frankx