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IRA-to-IRA Cash Transfer Processed as a Contribution

zkaps

Transferred a $amount from one account into another using transaction "Cash Transferred into Account". Both accounts are defined as IRAs in Quicken. When posting the transaction, Quicken sets the Action to "ContribX" and asks if this contribution should be associated with tax year 2020 or 2021. However, this is not an IRA contribution but a transfer of funds between two tax qualified accounts. How should I record this transaction in Quicken as just a fund transfer and not a contribution ?

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Sherlock

If you do not want the transfer to appear as a ContribX, I suggest you transfer the funds using a security.

zkaps

I don't think I understand your comment.

The security in the source account does not exist in the target account so first it has to be liquidated, then the funds are transferred to the target account, which is in a different financial institution, then the transferred funds are invested in a new security. How do I do this and avoid a false contribution ?

Sherlock

zkaps said:

I don't think I understand your comment.

The security in the source account does not exist in the target account so first it has to be liquidated, then the funds are transferred to the target account, which is in a different financial institution, then the transferred funds are invested in a new security. How do I do this and avoid a false contribution ?

If you don't want to use an existing security, you may create one for the purpose of such transfers.

Another approach you can use is to split the transfer into a Withdraw and a Deposit: select Enter Transactions

zkaps

I updated the transaction to show a Deposit for the target account. I did not receive any Quicken messages telling me the inbound funds for the target account is no longer an "IRA contribution", e.g., contributions reduced or something similar . How do I query Quicken to show all 2020 IRA contributions for the target account to verify the contribution is no longer there ?

Sherlock

zkaps said:

I updated the transaction to show a Deposit for the target account. I did not receive any Quicken messages telling me the inbound funds for the target account is no longer an "IRA contribution", e.g., contributions reduced or something similar . How do I query Quicken to show all 2020 IRA contributions for the target account to verify the contribution is no longer there ?

Quicken tracks the IRA contributions using a tax line assignment on source side of the transfer: Form 1040:IRA contribution, self or Form 1040:IRA contribution, spouse. If they exist, the contributions should appear on the Tax Summary report: select Reports > Tax > Tax Summary

zkaps

Great, thanks for your help !