The RMD taken from my IRA account does not show in the tax planner

LAHK
LAHK Member ✭✭
The requited minimum distribution taken from my IRA account does not show in the tax planner as taxable income. I've edited my IRA account to show that it is tax deferred and that it is a traditional Ira. I have edited the transfers out of this account to be reported on the 1099-R: Total IRA taxable distribution. How do I solve this problem? I've tried the previous answers but none have solved the problem.

Best Answer

  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭✭
    edited November 2022 Answer ✓
    Did you transfer the cash withdrawal to another investment account?  There is a known bug where withdrawals from an IRA account transferred to another investment account (whether taxable or not) do not get captured as taxable distributions like they should.
    If this is what you did, you can enter a Deposit transaction into the other investment account with the category being a transfer from the IRA account.  That should then capture the distribution.
    If you had tax withheld from the distribution:
    1. Enter the net amount of the distribution as the Deposit transaction amount.
    2. Split the category with the 1st line of the split being the transfer from the IRA account...the amount should be a positive number for the full before tax distribution.
    3. In the 2nd line of the split enter the tax withheld category you use...the amount should be a negative number for the amount of the tax that was withheld.
    4. The total of the split must equal the amount of the net deposit.
    5. Go back to the IRA account and delete the original distribution transaction so you don't double count the distribution in the IRA account.
    After doing this, Tax Planner and the Tax Reports will properly capture the gross taxable distribution and the tax withheld amounts.

    Did this resolve the issue for you?
    (QW Premier Subscription: R44.20 on Windows 11)

Answers

  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭✭
    edited November 2022 Answer ✓
    Did you transfer the cash withdrawal to another investment account?  There is a known bug where withdrawals from an IRA account transferred to another investment account (whether taxable or not) do not get captured as taxable distributions like they should.
    If this is what you did, you can enter a Deposit transaction into the other investment account with the category being a transfer from the IRA account.  That should then capture the distribution.
    If you had tax withheld from the distribution:
    1. Enter the net amount of the distribution as the Deposit transaction amount.
    2. Split the category with the 1st line of the split being the transfer from the IRA account...the amount should be a positive number for the full before tax distribution.
    3. In the 2nd line of the split enter the tax withheld category you use...the amount should be a negative number for the amount of the tax that was withheld.
    4. The total of the split must equal the amount of the net deposit.
    5. Go back to the IRA account and delete the original distribution transaction so you don't double count the distribution in the IRA account.
    After doing this, Tax Planner and the Tax Reports will properly capture the gross taxable distribution and the tax withheld amounts.

    Did this resolve the issue for you?
    (QW Premier Subscription: R44.20 on Windows 11)
  • LAHK
    LAHK Member ✭✭
    Thank you very much. Your suggestion worked. The distribution now shows up in the "Tax Planner." I did have to go into the IRA account to remove the amount of the distribution.
  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭✭
    edited November 2022
    I'm glad it worked for you.  And thanks for pointing out the need to delete the original transaction in the IRA account.  I had forgotten to mention that.
    How Quicken handles distributions from tax deferred accounts leaves a lot to be desired.  The issue you ran into here has been a long-standing issue.  There is a product improvement idea regarding this that has been posted at https://community.quicken.com/discussion/7864626/improve-handling-of-ira-distributions-including-qcds-and-roth-conversions/p1.   If you agree with it please be sure to vote for it by clicking on the voting button at the bottom of the original post as shown by the example in the following picture.  The Quicken Team does review the ideas posted here and the more people who vote for an idea the more likely they will at some time add the idea to there product development plan.:

    (QW Premier Subscription: R44.20 on Windows 11)
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