Withholding Creates Unequal Transfer

Verbivore

I currently have an IRA and the RMD is transferred into my checking account monthly. Along the way, fed tax is withheld. The withdrawal from my IRA is $40.21 and the deposit to my checking is $26.94 How do I match and reconcile this transaction?

Chris_QPW

What that sounds like to me is that in the Investment account you have the gross amount and (in the background) they have removed the taxes before it shows up in the checking account.  So what I would do is change the transaction amount in the checking account to the gross amount and then select to split it, and then put in the line item(s) for the tax and then select Adjust so that the result is the net amount.

NotACPA

Show $40.21 (the gross amount removed from you IRA) as a transfer to your checking account.

SPLIT the transaction in your checking account and on the 2nd line of the split, record NEGATIVE $13.27 as the amount with your Fed Tax  Withheld category, then use the Adjust button to change the actual deposit to $26.94.

Q can only record taxable events/transactions in a taxable account, NOT your IRA.

Chris_QPW

What that sounds like to me is that in the Investment account you have the gross amount and (in the background) they have removed the taxes before it shows up in the checking account.  So what I would do is change the transaction amount in the checking account to the gross amount and then select to split it, and then put in the line item(s) for the tax and then select Adjust so that the result is the net amount.

NotACPA

Show $40.21 (the gross amount removed from you IRA) as a transfer to your checking account.

SPLIT the transaction in your checking account and on the 2nd line of the split, record NEGATIVE $13.27 as the amount with your Fed Tax  Withheld category, then use the Adjust button to change the actual deposit to $26.94.

Q can only record taxable events/transactions in a taxable account, NOT your IRA.