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How to make an unqualified deposit into an IRA

TJacobmaine

I need to seperate qualifying and unqualifying deposits into an IRA accout.

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Comments

volvogirl

What are qualified and unqualified deposits? And why do you need to separate them? It's usually when you take a distribution that it is Qualified or not.

TJacobmaine

A qualified deposit allows you to take it as a deduction on taxes. Unqualified does not. During covid we were allowed to take withdrawals and then repay with in 90 days. Quicken tax planner counts all transactions as qualified and is deducting the repayment from my income.

volvogirl

FYI - I don't think that's what qualified means. Deposits are just deductible or not. Qualified means you can roll it over a distribution to another account or you have the take the cash.

TJacobmaine

That is true. Looking at how Quicken operates, when I repaid my IRA loan, it is treating it as a deductable transaction, which it is not. I need to repay the loan and not adjust my income. Any suggestions how to do that?

Jim_Harman

Presumably you used the repayment to purchase one or more securities in the IRA

Try entering this as one or more Bought transactions with the cash coming from your checking account rather than transferring the cash and then buying.

I think that will bypass Quicken's treatment of the repayment as a contribution to the IRA.

TJacobmaine

I just tried and it's still deducting from income. Thanks anyway

Tom Young

You might try this:

In your checking Account make the entry as a disbursement but use the same Account ["Name of Checking Account"] as the Category. In the memo field you'd explain that this was a repayment to the IRA under the short term rollover rule. In the IRA enter a Cash Transferred into Account and enter the dollar amount, again, using the IRA Account in the Transfer account box, with the same memo information. It looks like Quicken does call this a "2021" contribution in the IRA Account itself, but that entry won't be picked up in the Tax Schedule.