How to categorize Schwab Bank interest in a brokerage account?

Boborino

I have a 401K at Schwab with bank interest from uninvested cash accumulating. How should I categorize this in Quicken (Mac)?
Is it "Investment Income"?

It looks like Quicken recorded the transactions as a Deposit and categorized them as bank interest (just like if it was from a checking/savings account), however, I do not want to mix these transactions with non-brokerage funds for report consistency.

CocoaPuff

I use a category _IntInc to record bank interest.

Boborino

> @CocoaPuff said:
> I use a category _IntInc to record bank interest.

That's an idea but I'd like to use the default Interest Income category in the Investments section(I think), but it is not popping up as an option. ?????

Tom Young

The interest income will be reported on Quicken reports as interest income from that 401(k) Account so from that standpoint the interest income is "investment income." (In non-retirement accounts the interest is included on those accounts' Consolidated 1099.)

I don't accept the Schwab download as a deposit.  Instead I created a manual "security" called "Schwab Bank" , with a ticker symbol of "Schwab Bank" and then simply record an IntInc action (this is in Windows and I assume the Mac version has something similar) for that security in the downloaded amount.  The downloaded transaction then recognizes the transaction as a match.

You, of course, should be able to simply leave the downloaded transaction "as is."

Boborino

> @Tom Young said:
> The interest income will be reported on Quicken reports as interest income from that 401(k) Account so from that standpoint the interest income is "investment income." (In non-retirement accounts the interest is included on those accounts' Consolidated 1099.)
> I don't accept the Schwab download as a deposit.  Instead I created a manual "security" called "Schwab Bank" , with a ticker symbol of "Schwab Bank" and then simply record an IntInc action (this is in Windows and I assume the Mac version has something similar) for that security in the downloaded amount.  The downloaded transaction then recognizes the transaction as a match.You, of course, should be able to simply leave the downloaded transaction "as is."

What "type" of security do you list Schwab Bank as? Asset class Cash I presume.
Thank you

CocoaPuff

@Boborino

> @Boborino said:
> > @CocoaPuff said:
> > I use a category _IntInc to record bank interest.
>
> That's an idea but I'd like to use the default Interest Income category in the Investments section(I think), but it is not popping up as an option. ?????

"_IntInc" is a default Interest Income category (at least it used to be in earlier versions of Quicken). I do not know if it is a default category today in Quicken Mac or Win. I manually type all the characters _IntInc in the Category field. Been using Quicken since DOS days and always used the _IntInc category to record and track interest. In later versions of Quicken, I noticed _IntInc would not auto appear for me and I got around it by manually typing _IntInc in the Category field.

Tom Young

Boborino said:

What "type" of security do you list Schwab Bank as? Asset class Cash I presume.

I called it a CD, but it doesn't really make any difference because I don't own any "shares" of this security.  It's entirely a "security" of convenience such that I know where the interest comes from.

jacobs

Categories starting with underscore characters of defaults from old or current Quicken Windows investment categories. Old Quicken Mac used a bullet prefix for investment categories. Modern Quicken Mac uses no prefixes, and plain English for category names.

In Quicken Mac, there are two default categories for interest income: (1) Personal Income:Interest Earned and (2) Investment Income:Interest Income.  Both are configured to report income as Schedule B Interest income.

(There is also a category called Investment Income:Interest Income Tax-Free, which is configured to report income as Schedule B State & muni bond interest.)

I should note here that recording investment transactions in Quicken Mac, you don't select a Quicken category as you do in banking transactions; you select the Type of investment transaction, and Quicken is hard-wired to map that income to one of its required and non-deletable sub-categories of Investment Income. You cannot select these categories in a regular banking transaction. In an investment account, you select "Dividend Income" for the Type, record the dividend amount, and Quicken maps this to Investment Income:Interest Income. If you have interest in a checking account, you manually select Personal Income:Interest Earned. They both end up in the same place, but this is how Quicken protects its ability to do investment calculations, by not allowing non-investment transactions to use the same categories.

I have some interest income from a TD Ameritrade account, and I use the Type=Interest Income to record those in the investment account. For interest from a checking or savings account, I use Category=Personal Income:Interest Earned.