How to record taxes on RMDs disbursed directly to state & fed?

BrB
BrB Member
My money mgr disburses taxes on my RMDs directly from the IRA to State & Fed treasuries. Until this year I used the WITHDRAW action. Now in R45.11, I find only a WITHDRAWX function, which requires the destination be another account in QW. This doesn't work. What replaced the WITHDRAW function for this kind of transaction? Am I missing something?

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Answers

  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Hi @BrB

    Technically speaking, those tax withholdings should be accounted for as prepaid taxes and in Quicken should be posted either "Tax:Fed" or "Tax:State" category.  Not sure what was happening in the past, but this is what I suggest you do now and in the future.

    Frankx

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  • BrB
    BrB Member
    I know that, and record the money as Tax:Fed or Tax:State (I've used Quicken since the days of DOS3.0). However, unlike prior versions, QW 45.11 will not let me get to the point of designating the moneys as Tax pmts; it tries to show the $ going to another account, rather than disbursed out of the IRA, which is incorrect. How can I get past that?
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    Answer ✓
    See this FAQ for the recommended procedure:
    https://community.quicken.com/discussion/7072150
  • BrB
    BrB Member
    Thanks for the tip. I will try this procedure and see if it will mesh with what I've been doing in the past.
    I'd still like to see Quicken address the situation of RMDs, QCDs and taxes; I think it's becoming too common not to have a standard procedure.
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