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Quicken Classic for Mac
Investing (Mac)
Roth IRA account reports reinvested dividends incorrectly
jess8887
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)?
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Accepted answers
Frankx
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
jacobs
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.
All comments
Frankx
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
jess8887
Frankx,
Thank you. I had to edit the security. Window > Securities > select the Security Name > right click > Edit Security > check the Tax-free
jacobs
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.
jess8887
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
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.
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