Roth IRA account reports reinvested dividends incorrectly

jess8887
jess8887 Member ✭✭
edited January 26 in Investing (Mac)
I have three Roth IRA accounts. In one of the accounts, the reinvested dividends are incorrectly reported as Dividend Income. On the two other accounts, the reinvested dividends are correctly reported as Dividend Income Tax-Free.

I've checked the Accounts Settings on all three accounts, their account type is correctly set to Roth IRA.

Are there additional settings I may be overlooking that would cause one of the Roth IRAs to report the reinvested dividends incorrectly (i.e., taxable)?

Best Answers

  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Accepted Answer
    Hi @jess8887,

    The account settings are probably not the problem, rather it is likely that the category is the issue in combination with a memorized  payee.  You should be able to simply edit the category and change it to the tax-free category.  And if you memorize it the next time it should be recorded properly.  BTW - since the account type is a Roth IRA, even if the category is Dividend Income, it should not be picked up by the tax planner or exported incorrectly into turbotax or another program, because the account type is correct.

    Frankx

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  • jacobs
    jacobs SuperUser, Mac Beta Beta
    Accepted Answer
    I just use regular Reinvest Dividend transactions in my IRA accounts. Quicken won't count them in a Tax Schedule report because it knows it's a retirement account. And in a Category report, I can include or exclude retirement accounts depending on what I'm trying to see.


    Quicken Mac Subscription • Quicken user since 1993

Answers

  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Accepted Answer
    Hi @jess8887,

    The account settings are probably not the problem, rather it is likely that the category is the issue in combination with a memorized  payee.  You should be able to simply edit the category and change it to the tax-free category.  And if you memorize it the next time it should be recorded properly.  BTW - since the account type is a Roth IRA, even if the category is Dividend Income, it should not be picked up by the tax planner or exported incorrectly into turbotax or another program, because the account type is correct.

    Frankx

                      Quicken H&B-Subscription Ver. 34.24 - Windows 10-Home Version
                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

  • jess8887
    jess8887 Member ✭✭
    Frankx,
    Thank you. I had to edit the security. Window > Securities > select the Security Name > right click > Edit Security > check the Tax-free
  • jacobs
    jacobs SuperUser, Mac Beta Beta
    If the security isn't inherently tax-free -- such as a tax-free bond fund -- the potential  problem with marking the security as tax-free is that if you ever acquire the same security in a non tax-free account, your income won't be recorded correctly.
    Quicken Mac Subscription • Quicken user since 1993
  • jess8887
    jess8887 Member ✭✭
    edited January 26
    Jacobs,

    Thank you for your comments. But, if I don't change the security to tax-free, what is the solution (recommendation) to have the reinvested dividends reported correctly within the Roth IRA account?

    I would assume if the account type is set as a Roth IRA, it would report the dividends at tax-free, not taxable.
  • jacobs
    jacobs SuperUser, Mac Beta Beta
    Accepted Answer
    I just use regular Reinvest Dividend transactions in my IRA accounts. Quicken won't count them in a Tax Schedule report because it knows it's a retirement account. And in a Category report, I can include or exclude retirement accounts depending on what I'm trying to see.


    Quicken Mac Subscription • Quicken user since 1993
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