403b Distribution

Raydar

I am currently running Quicken for Windows subscription. My wife has recently started to take money from her 403b, from a company which we have not been able to set up automatic downloads so we manually enter the transactions. I have read a few discussions concerning how to do the entry for this but do not understand how to do it, we are withdrawing $1000 per month and the 403b takes out $200 for taxes. Our bank shows the deposit to the savings account of $800 but I do not understand how to get the 403b account in quicken to show that $1000 was withdrawn from that account 800 to our account and 200 to federal taxes. I would also like to make this a monthly re-occurring event if possible. I am not an accountant so please make your explanations user friendly!

Jim_Harman

The basic idea in your case would be to record the securities sold to cover the distribution in the 403(b) account. This will put $1,000 in cash in the 403(b) account. Then, in the receiving account, record a split deposit transaction consisting of $1,000 transferred from the 403(b) account and -$200 in taxes withheld. The tax withholding amount should be recorded as a negative number and will result in the correct $800 deposit to your taxable account. 

Please see this FAQ article.
https://community.quicken.com/discussion/7072150/faq-best-way-to-handle-distributions-from-ira-also-rmd

And if you would like Quicken to improve its handling of withdrawals from IRAs and other tax deferred accounts, please review and vote on this Idea post
https://community.quicken.com/discussion/7864626/improve-handling-of-ira-distributions-qcds-and-roth-conversions

Sherlock

There are few ways you may enter the transaction.  I suggest using a split transaction in the savings account with one entry for the transfer from the 403b account and others for the withholdings.  Once you've entered the transaction, you may use the transaction to create a reminder.

Step by step:

1. Open the savings account register.
2. Press Ctrl + N
3. Enter a payee (for example, the name of the 403b financial institution).
4. Press Ctrl + S
5. For the first entry, select the 403b account category pull-down menu and enter $1000
6. For the subsequent entries enter the withholdings with the categories as negative amounts totaling -$200.  For tax planning and reports, I suggest using categories with an appropriate Form 1099 withheld tax-line association.
7. Select Adjust to coerce Quicken to calculate the transactions total of $800.
8. Select OK to enter the transaction.

When you're satisfied with the transaction, right-click on the transaction and select Add reminder to create the income reminder.

Raydar

> @Sherlock said:
> There are few ways you may enter the transaction.  I suggest using a split transaction in the savings account with one entry for the transfer from the 403b account and others for the withholdings.  Once you've entered the transaction, you may use the transaction to create a reminder.
>
> Step by step:* Open the savings account register.
> * Press Ctrl + N
> * Enter a payee (for example, the name of the 403b financial institution).
> * Press Ctrl + S
> * For the first entry, select the 403b account category pull-down menu and enter $1000
> * For the subsequent entries enter the withholdings with the categories as negative amounts totaling -$200.  For tax planning and reports, I suggest using categories with an appropriate Form 1099 withheld tax-line association.
> * Select Adjust to coerce Quicken to calculate the transactions total of $800.
> * Select OK to enter the transaction.
>
> When you're satisfied with the transaction, right-click on the transaction and select Add reminder to create the income reminder.

Thank you very much for your help, I kept doing this but couldn't make it work, then you said "select Adjust" and that made it all work.
Again, thanks a million!