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

Ted Gilmore
Ted Gilmore Quicken Mac Other Member ✭✭
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?

Comments

  • Jon
    Jon Quicken Mac Subscription SuperUser, Mac Beta Beta
    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
    Tom Kingston Quicken Windows Subscription Member ✭✭
    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
    Jon Quicken Mac Subscription SuperUser, Mac Beta Beta
    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
This discussion has been closed.