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401K withdrawl Tax

lmsandling

How do I enter the taxes taken out of my 401k drawl ? Is there a seperate category?

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Accepted answers

NotACPA

Expanding upon Tom's reply, ANY tax-related withholding can NOT be recorded in a tax-deferred account in Q.

SO, what you need to do is to transfer then entire amount to a taxable account (probably your checking account) and then split the transaction to show the entire amount coming from the 401k and than a 2nd line of the split showing a NEGATIVE amount going to the tax withholding category. Then "Adjust" the transaction so that only the after tax amount is actually deposited to checking.

E.G.

Total transaction,originally $5,000

1st line of split:

Transfer from 401k $5,000

2nd line of split

Tax category - $1,000

Then there will be a line with no category for -$1,000 ... DELETE IT

Click the adjust button and click OK

NEW Total transaction $4,000 (which is what your checking actually receives0

All comments

Tom Young

If you're referring to a "Quicken Category" for "taxes withheld from 401(k) distributions", there isn't one, but you're certainly free to create one if you wish.

However, there's no real difference, at the income tax level, of how or where taxes are withheld so you can simply continue to use the Category that you'd use for taxes withheld from paychecks and the like.