Why Tax Impact 401(K) Accounts in Tax Schedule and Summary Report is showing up

jl747
jl747 SuperUser ✭✭✭✭✭
edited January 13 in Reports (Windows)
When running a Tax Schedule and Summary Report I am getting a Tax Impact for 401(K) Accounts for a transaction that is in a Schwab IRA Rollover Account (Account Type - Traditional IRA).

Please note that this is the first time this has shown up in a Non 401 (K) account.
I did have a 401K account a number of years ago and that has been Closed since 2003.
The 401K Account has Check Marks in all boxes under Account Display.

Strange that this just happened after the Schwab connection was switched to EWC+.

I have deleted the transaction and re-entering it and I am getting the same results.

How do I fix this problem?

Any help would be appreciated.

I know I can uncheck this within by Customizing the Report. But I do not want to do this every time if I can help it.
I Validated and Super Validate Quicken and no errors were reported.


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Answers

  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭
    edited December 2021
    Retirement accounts (401k, IRA, Roth IRA, 403b, etc.) and other tax deferred/tax exempt accounts should never be selected in the Customizations of the Tax Reports.  The defaults of these reports have them unchecked for this reason. 
    This is because there are no transactions within retirement accounts that have a tax impact.  If retirement accounts are included in the Tax Reports Customizations there will be transactions within them that Quicken will assume are taxable events and it will add them to the reports when they shouldn't be. 
    Transfers into and out of these accounts have a tax impact but once they are in the account there are no tax impact events.  Transfers in and out are captured properly when the Tax Schedule association of the retirement accounts (in Account Details) is set up properly.
    When you pulled up the reports, were they saved reports or were they the default reports?  If they were saved reports, then it indicates that at some time in the past you probably selected the retirement accounts before saving them. To fix this, unselect those accounts and save the report.
    Or did you open the default reports and see this?  If this is the case then there is an issue that perhaps needs to be reported to the Quicken Team so they can investigate.  (FYI, I just pulled up my default reports and all retirement accounts are unselected as it should be.)
    (QW Premier Subscription: R37.66 on Windows 10)
  • jl747
    jl747 SuperUser ✭✭✭✭✭
    Upon opening the reports the Default is showing a check mark next to Tax Impact 401(K).
    None of my retirement accounts are selected.
    My saved reports do not show Tax Impact after I remove the check mark and saved it.

    I did send this problem to Quicken via the Report a Problem option.
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  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭
    Is "Tax Impact 401(K)" an account? 
    If it is, does the General tab of Account Details look like the area shaded in yellow?  If not, then that is probably why the box is checked in the report Customization.
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  • jl747
    jl747 SuperUser ✭✭✭✭✭
    The Closed Account is like that.

    But the Account that the transaction is associated with is like this.


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  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭
    Hmmm...the picture I posted and the one you posted are a little different (one is a 401k, the other is an IRA) but they are both retirement accounts and they are both set up as tax deferred.  Per my understanding, your IRA account should not have been included (checked) in the default tax reports.  I agree that reporting this problem to Quicken was the right thing to do.
    BTW, "Super User" did not show up after your name in this thread (at least not that I saw earlier) until just now.  I hope I didn't come across as "dumbing it down" too much.  When I don't know how much experience an Op has I tend to provide much more detail and explanation than when I know the Op is very experienced with Quicken.  Sorry about that.
    (QW Premier Subscription: R37.66 on Windows 10)
  • jl747
    jl747 SuperUser ✭✭✭✭✭
    I did not do a screenshot of the Closed 401K account.
    I did say in the above post "The Closed Account is like that." I should have include that your picture is like my Closed 401K account. Please note that the 401K account was closed in 2003 and has had no activity since then.
    Here is a screenshot of my Closed 401K account.

    The previous screenshot is the Account that the transaction is associated with the Tax Impact 401(K) report problem.
    I hope that explains my screenshot.
    Do not worry about "dumbing it down. Sometimes I forget to include everything.
    Sorry for any delay in responding. I am not getting emails from the Community for some reason.
    Hope this helps.





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  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    Is "Tax Impact 401(K)" an account? 
    Yes, it's a built-in account which should generally be invisible. But it does appear in a few places.


    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • jl747
    jl747 SuperUser ✭✭✭✭✭
    @Rocket J Squirrel
    The Custom Tax Summary screen is where I have to uncheck the Tax Impact 401K each time I run a report even though the account in question is not a 401K and never was one.
    As for your other screenshot "Refresh Online...".
    Are suggesting to run it for the "Tax Impact" with no Options checked?
    If so, which Option would someone choose if they had to.
    Or, is this just an FYI?
    Thanks for your input.

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  • garysmith87
    garysmith87 Member ✭✭✭✭
    I just tried to locate that "account" in my Tax Summary report.  I had to customize the report, select Accounts and mark Show Hidden in order to see "Tax Impact of 401(k) accounts".  And it was already marked with a checkmark to include that "account"...even though I couldn't see it in the list without selecting Show Hidden.  

    So...I'm wondering if your wayward old account is marked as Hidden.  And if it is, I'd also mark it as "Separate".

    Then report back and see if that corrects the issue.  Quicken has a nasty habit of having Hidden accounts not actually hidden in Quicken unless they are also marked Separate.  

    Let me know if this helps at all in your situation.  I'm curious if it does.  
  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭
    Is "Tax Impact 401(K)" an account? 
    Yes, it's a built-in account which should generally be invisible. But it does appear in a few places.


    Well, I'll be.  I've don't recall ever seeing that account before.  It didn't show up in my main data file drop down until I selected Earliest to Date and Show (hidden accounts) and then it popped up.  It is listed as an Investment Account and not as a Retirement Account so it would then, by default have it's box checked for inclusion in the report. 
    I was then able to see the transactions in the tax reports for 2012-2015...the last 3 yrs that I worked and participated in a 401k plan.  It looks like it is set up to capture the 401k contributions from paycheck deductions (shows the data as a subtraction from W2 income) without actually transferring the contributions to the 401k account.
    I guess old dogs can learn new tricks!   :):smile:
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  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭
    jl747 said:
    I did not do a screenshot of the Closed 401K account.
    I did say in the above post "The Closed Account is like that." I should have include that your picture is like my Closed 401K account. Please note that the 401K account was closed in 2003 and has had no activity since then.
    Here is a screenshot of my Closed 401K account.

    The previous screenshot is the Account that the transaction is associated with the Tax Impact 401(K) report problem.
    I hope that explains my screenshot.
    Do not worry about "dumbing it down. Sometimes I forget to include everything.
    Sorry for any delay in responding. I am not getting emails from the Community for some reason.
    Hope this helps.
    Thanks for the additional information.  It doesn't really change the question/issue:  Why are you seeing a tax impact in the Tax Reports for a Retirement Account that looks like from Account Details is set up correctly?
    Maybe it has something to do with the tax line item associated with the category?  I don't know because Quicken won't let me view (via Edit) any of the _LT CapGnDst category details.
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  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    edited December 2021
    The Tax Impact of 401(k) Accounts account register should only contain MiscExpX transactions for tracking the _401Contrib and _401ContribSpouse from the paycheck transactions.  I suggest examining the register to determine how to best resolve the issue.  One way to access the register is to create a temporary transfer to the register in an accessible register and then use the transaction to go to the matching transfer.
  • markus1957
    markus1957 SuperUser, Windows Beta Beta
    @Sherlock comment to look at the Tax Impact register should be tried. There could have been a corrupting event (Possibly associated with Schwab EWC+) with those 12-1 transactions that erroneously created entries in the Tax Impact register. While a MiscIncX category is also allowed in the Tax Impact register, _LTCapGnDst is definitely not allowed in that register.

    Deleting the 12-1 transactions from the Schwab register and reentering them would not remove them from the Tax Impact register. If they exist in the Tax Impact register, they should be removed manually.

    You can also access the Tax Impact register using Edit>Find/Replace from the menu bar. Run a "Cleared Status" contains "Uncleared" Find. You will see Tax Impact listings; click the Date hyperlink of one of the Tax Impact listings to open the register. Look for and delete the 12-1 transactions with _LTCapGnDist category.
  • jl747
    jl747 SuperUser ✭✭✭✭✭
    edited December 2021
    My 401K were also from contributions from my payroll check.
    Sames @Boatmaniac.
    I also can not edit _LTCapGnDst.
    @Sherlock
    I opened the closed 401K account all incoming
    transaction were XIn.

    The last transaction in the account when I closed it
    was MiscExpX.
    This what my Payroll Split for 401K looks like.

    Are you saying to enter this transaction into my Traditional or Roth account and then transfer back to my Rollover?

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  • markus1957
    markus1957 SuperUser, Windows Beta Beta
    @Sherlock is just providing a means for you to access the hidden Tax Impact register and look for/delete those 12-1 transactions. He's not using the entries as a solution. The method I provided is a bit simpler and doesn't involve creating and later deleting a temporary entry to gain access to the hidden register.
  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    jl747 said:
    My 401K were also from contributions from my payroll check.
    Sames @Boatmaniac.
    I also can not edit _LTCapGnDst.
    @Sherlock
    I opened the closed 401K account all incoming
    transaction were XIn.

    The last transaction in the account when I closed it
    was MiscExpX.
    This what my Payroll Split for 401K looks like.

    Are you saying to enter this transaction into my Traditional or Roth account and then transfer back to my Rollover?

    No.  I suggested you examine the Tax Impact of 401(k) Accounts account register to determine how best to correct the issue.  
  • jl747
    jl747 SuperUser ✭✭✭✭✭
    You said, "(Possibly associated with Schwab EWC+)".
    I agree since this did not happen any time before the switch over from DC to EWC+.
    Did a Search and did not find any listing for 12-1 transaction.
    I did find the transaction in question and when I click on the date it takes me to the transaction in the register.
    I have already removed and added it back in with the same results.
    This is what the transaction entry looks like.




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  • markus1957
    markus1957 SuperUser, Windows Beta Beta
    I think you are missing the point here. Are you able to gain access to the hidden Tax Impact register?  I'd like to see the last couple of entries in that hidden register. 

    Your screenshot transaction is from the Schwab register, not the Tax Impact Register.
  • jl747
    jl747 SuperUser ✭✭✭✭✭
    Also note that the _401EmployerContr has no Tax Related option attached to that category.
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  • jl747
    jl747 SuperUser ✭✭✭✭✭
    Sorry. But what is the Tax Impact Register.
    Is that the Closed 401K register.
    If so, the I did post images of it in posts where I said, "I opened the closed 401K account all incoming
    transaction were XIn.The last transaction in the account when I closed it
    was MiscExpX.
    This what my Payroll Split for 401K looks like."

    From the 401K Closed account register.
    All transactions from Payroll were entered as XIn
    The MiscExp was Total funds after cashing out the account.

    From the Payroll Split account
    I hope this helps also.


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  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    Are you able to gain access to the hidden Tax Impact register?
    It's a pseudo-account or maybe a quasi-account. It has no register.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • markus1957
    markus1957 SuperUser, Windows Beta Beta
    edited December 2021
    Based on your first screenshot, you have 2 transactions dated 12-1 in the hidden Tax Impact account register. They are erroneous entries that need to be manually deleted.  As of yet, you have not accessed the hidden register to verify or exclude that possibility.

    If excluded, then there is some faulty cross-linking issue that is grabbing the Tax Impact account rather than Schwab as the source account for the transaction. 

    If you run an Investment transaction report, what account is listed for the 12-1 _LTCapGnDist tranactions?

    After deleting and re-entering the 2 transactions in the Schwab register, I would expect 4 transactions to appear in the Tax Schedule and Tax Summary reports. 2 correctly attributed to Schwab and 2 incorrectly attributed to Tax Impact. Only 2 transactions might appear in the Investment Transactions report because the Tax Impact account is not selectable in that report.

    Adding- If this was caused by a corrupted download associated with Schwab EWC+ transition, it is possible the transactions will show a cleared status in the hidden Tax Impact account. In that case they would not show up in the Find search, but plenty of other transactions from Tax Impact will show up. Any one of those can be used as the gateway to access the hidden account and then search for the erroneous 12-1 transactions. 
  • markus1957
    markus1957 SuperUser, Windows Beta Beta
    @Rocket J Squirrel It's not a Quasi account, it's a hidden account with a register that can be edited. You just need to know how to access it. Both the methods @Sherlock and I have described will get you there. You can even use the gear icon to get to account details and delete the account; not recommended as it will mess up all of your 401k tax calculations.


  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    edited December 2021
    jl747 said:
    Sorry. But what is the Tax Impact Register.

    From https://help.quicken.com/pages/viewpage.action?pageId=3216295:
    When Quicken adds a 401(k)/403(b) account, it also creates a special tax impact account. This account tracks all the transactions associated with your retirement account that can have an affect on your taxes (for example, if you withdraw funds from your retirement account prematurely). Quicken uses this information in some tax reports and planning tools. The tax impact account does not appear in your Account List, but you can drill down to tax impact account transactions in tax reports. You should not edit or delete such transactions, or the account itself, in any way.

    The portion of the Tax Schedule report you provided shows you have inappropriate transactions in the Tax Impact of 401(k) Accounts account register.

  • jl747
    jl747 SuperUser ✭✭✭✭✭
    I deleted those two entries and guess what.
    I ran a Tax Summary Report and the Tax Impact 401(K) still shows up in the report.
    I even closed and reopened Quicken.

    I re entered the transactions.
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  • jl747
    jl747 SuperUser ✭✭✭✭✭
    In the 401K register this how the transactions were entered

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  • markus1957
    markus1957 SuperUser, Windows Beta Beta
    You really should try looking in the hidden account register. 
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    @Rocket J Squirrel It's not a Quasi account, it's a hidden account with a register that can be edited. You just need to know how to access it.
    Thanks. In my limited experiments I couldn't make it appear. Learn something every day on this site.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • markus1957
    markus1957 SuperUser, Windows Beta Beta
    What we have here is a failure to communicate.  LOL. @jl747 until you look in the hidden Tax Impact account, this is going nowhere fast.
  • jl747
    jl747 SuperUser ✭✭✭✭✭
    edited December 2021
    OK here is what I have done.
    I did the Find and Replace. It was grey out except for the Date field. I found the 12/1 Transaction clicked on the Date and it opened the IRA Rollover register. This is the same register that I have delete and re entered the problem transaction and have gotten the same results.
    I Deleted the Closed 401K account and the Tax Impact for 401(K) Accounts still showed up in the Reports.
    In the Reports if I click on the Tax Impact nothing happens. Normally when you do it will open the Transaction Edit box.
    I am still confused on how to open a Hidden Tax Account if it is NOT the Closed 401K or the IRA Rollover.
    Also note that I advanced my computer clock to see what shows up in the .txf file that people use to for importing into TurboTax and the problem transaction was included. If this happens to others and they rely on Quicken and not their 1099 problems will had.
    I know that more Distributions will be download either on Thursday or Friday. It will be interesting to see what happens.
    There is also a Bug posting the Lounge about ETF's being mis-coded. I wonder if this post and that one could be closely related.

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