ira withdrawal

When I make a withdrawal from an IRA with withholding, 2 transactions show up in the downloaded transaction; one to the taxable investment acct., the other to Fed tax category. When I run the Tax Summary for 1099R, it does not show the total withdrawal, just the amount transferred to the investment acct. How do I get the total withdrawal to show up as a 1099 R withdrawal?

Answers

  • Bob_L
    Bob_L SuperUser ✭✭✭✭✭
    edited January 11
    You should build the transaction as a split deposit in the taxable account where the first line is the gross withdrawal as a transfer from the IRA, followed by a second line as the tax withholding amount, resulting in the net deposit. It's as if the withholding were done in the other account after the gross transfer. Delete the downloaded cash transaction for taxes and the downloaded net  transfer.
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  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited January 11
    See this FAQ
    https://community.quicken.com/discussion/7072150/faq-best-way-to-handle-distributions-from-ira-also-rmd

    Bottom line is to enter the withdrawal as a split deposit in a taxable account with one split being the gross distribution as a transfer from the IRA and the other being the tax withheld.
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  • Steppenwulf
    Steppenwulf Member
    What if I elect not to have the financial institution withhold taxes from my IRA? I will pay them manually as estimated tax payments.
    How do I structure the transaction then?
  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    What if I elect not to have the financial institution withhold taxes from my IRA? I will pay them manually as estimated tax payments.
    How do I structure the transaction then?

    Then it's a simple transfer from the IRA to the taxable account ... which is probably what was downloaded.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Bob_L
    Bob_L SuperUser ✭✭✭✭✭
    edited January 12
    The same way but in whatever account you use and not part of the split.  Instead just record it as a separate expense item in the account you use to do that, and categorize it as "estimated taxes", or whatever you call that category.  But still structure the withdrawal the same as above in the receiving taxable account.  BTW, be sure that "transfers out" of the IRA are set to 1099 taxable distribution on the tax schedule associated with the IRA Account. (Edit details of the account). 
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