Is it possible to merge 2 mutual fund transactions into 1 split checking account transaction?

sdamozonio

Quicken Premier: My children's 529 account performs 2 transactions monthly on the same day to transfer funds into my credit union checking account. The 529 handles it as 2 separate transactions. As 'Sale' transactions, when I download the 529 activities, Quicken requires I enter where the sale is going to, I enter the checking account and I see 2 separate transactions added to the checking account. At the same, the credit union only registers 1 transaction from the 529 that is the sum of the two 529 transactions. Is there a way in quicken to take those 2 transactions and merge them into 1 split transaction?

Boatnmaniac

As I understand it, distributions from 529 accounts have similar deferred income and tax consequences as do distributions from IRA and 401K accounts.  Quicken does not handle them well but there is a workaround that you might want to consider trying because I think it should address the tax issues while at the same time address your desire to "merge" the distributions from the 529's into a single deposit transaction in the CU checking account.:

IN THE CREDIT UNION ACCOUNT:

1. Manually enter a split category deposit transaction in your CU checking account for the total of the 2 deposits.
2. In the 1st line of the split category enter a transfer ( [1st 529 account name] ) for the gross distribution amount from the 1st 529 account....for a positive dollar amount.
   
3. In the 2nd line of the split category enter a transfer ( [2nd 529 account name] ) for the gross distribution amount from the 2nd 529 account....for a positive dollar amount.
   
4. If needed:  In the 3rd line of the split category enter a tax withheld category for the 1st 529 account...for a negative dollar amount.  Add a memo to it identifying which 529 account this is for.
   
5. If needed:  In the 4th line of the split category enter a tax withheld category for the 2nd 529 account...for a negative dollar amount.  Add a memo to it identifying which 529 account this is for.
6. Make sure the total of the categories in the split equals the net deposit transaction amount.
   

IN THE BROKERAGE ACCOUNTS: 

• For the Sale transactions that are downloaded, make sure that the proceeds are deposited to the cash balance of the account. 
  
• Do not show them as transfers out of the account.

Benefits of doing it this way:

• When the CU downloads the transaction from the brokerage Quicken should match it to the manual deposit transaction you entered.
• You will then have one deposit transaction in the CU checking account yet have transfers out of the 529 accounts.
  
• An issue with Quicken and distributions from tax deferred accounts:  When the distribution transactions are entered into the brokerage account, the withheld tax in the brokerage account is not captured in the Tax Reports and Tax Planner as part of the taxable gross distribution.  Instead, what is captured as taxable deferred income is the net after-tax dollar amounts.  This means Quicken's Tax Reports and Tax Planner will understate the taxable income from the distribution.  But by entering the split category transaction in the CU checking account as I described above, Quicken will capture and report the full gross taxable amount in the Tax Reports and Tax Planner.
• Another issue with Quicken and distributions from tax deferred accounts:  Expenses (such as tax withheld) made in a tax deferred account are not captured by Quicken as tax-related expenses.  By moving the tax withheld to the CU checking in the split category transaction it is captured as a tax-related expense in the Tax Reports and Tax Planner.
  

It is not an ideal situation but it works.  And I believe it is the only way to accomplish what you want to accomplish.

Questions?

Boatnmaniac

As I understand it, distributions from 529 accounts have similar deferred income and tax consequences as do distributions from IRA and 401K accounts.  Quicken does not handle them well but there is a workaround that you might want to consider trying because I think it should address the tax issues while at the same time address your desire to "merge" the distributions from the 529's into a single deposit transaction in the CU checking account.:

IN THE CREDIT UNION ACCOUNT:

1. Manually enter a split category deposit transaction in your CU checking account for the total of the 2 deposits.
2. In the 1st line of the split category enter a transfer ( [1st 529 account name] ) for the gross distribution amount from the 1st 529 account....for a positive dollar amount.
   
3. In the 2nd line of the split category enter a transfer ( [2nd 529 account name] ) for the gross distribution amount from the 2nd 529 account....for a positive dollar amount.
   
4. If needed:  In the 3rd line of the split category enter a tax withheld category for the 1st 529 account...for a negative dollar amount.  Add a memo to it identifying which 529 account this is for.
   
5. If needed:  In the 4th line of the split category enter a tax withheld category for the 2nd 529 account...for a negative dollar amount.  Add a memo to it identifying which 529 account this is for.
6. Make sure the total of the categories in the split equals the net deposit transaction amount.
   

IN THE BROKERAGE ACCOUNTS: 

• For the Sale transactions that are downloaded, make sure that the proceeds are deposited to the cash balance of the account. 
  
• Do not show them as transfers out of the account.

Benefits of doing it this way:

• When the CU downloads the transaction from the brokerage Quicken should match it to the manual deposit transaction you entered.
• You will then have one deposit transaction in the CU checking account yet have transfers out of the 529 accounts.
  
• An issue with Quicken and distributions from tax deferred accounts:  When the distribution transactions are entered into the brokerage account, the withheld tax in the brokerage account is not captured in the Tax Reports and Tax Planner as part of the taxable gross distribution.  Instead, what is captured as taxable deferred income is the net after-tax dollar amounts.  This means Quicken's Tax Reports and Tax Planner will understate the taxable income from the distribution.  But by entering the split category transaction in the CU checking account as I described above, Quicken will capture and report the full gross taxable amount in the Tax Reports and Tax Planner.
• Another issue with Quicken and distributions from tax deferred accounts:  Expenses (such as tax withheld) made in a tax deferred account are not captured by Quicken as tax-related expenses.  By moving the tax withheld to the CU checking in the split category transaction it is captured as a tax-related expense in the Tax Reports and Tax Planner.
  

It is not an ideal situation but it works.  And I believe it is the only way to accomplish what you want to accomplish.

Questions?