Required Minimum Distribution and Direct Rollover from a 401(k) account.

Ted Gilmore

My 401(k) is 100% cash, no "shares". I don't seem to have the Transaction Types in the Quicken account to accomplish what I need. This would be to distribute the cash balance is four segments:
The annual required minimum distribution (RMD), which would consist of:
1. Federal withholding tax on the distribution
2. State withholding tax on the distribution
3 The balance of the distribution removed from the 401(k) and put into my checking account. Then:

4. Removing all the remaining cash in the 401(K) account and transferring it into my Traditional IRA in the form of Direct Rollover. The 401(k) would then be reduced to a zero balance and closed.

How can I get this processing done through Quicken?

Jon

The transaction type for all four would be Payment/Deposit. The first two would be categorized as the appropriate type of tax withholding, the last two would be categorized as Transfers to the appropriate accounts.

Tom Kingston

If the movement of funds from a 401K to a checking account is handled as a transfer, how can one reflect that transfer as taxable income for reporting purposes within Quicken? In fact, the gross amount of the distribution (pre-tax) from the 401K is the amount that is taxable. Is there a way to handle this in Quicken so the reporting within Quicken can be used to show the "pension income" for tax purposes?

Jon

It's possible but requires a bit of extra work. Here's a recent discussion that talks about one way to do it:

https://community.quicken.com/discussion/7908961/recording-transfers-from-retirement-to-checking-as-taxable-income