Tax Summary Report does not include income for Conversions to Roth IRA

geeggross Member ✭✭
Cash nor transfer of shares is captured in the Tax Summary Report


  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited March 2023

    Roth conversions where the money is transferred directly from a Traditional account to a Roth account do not appear in the Tax Summary Report because both accounts are marked as Tax deferred in Quicken and thus are excluded from the Tax reports.

    To have the conversion appear in the Tax reports, you can record it as described in this discussion

    This process boils down to

    • In the Traditional account, set the tax schedule for transfers out to "1099R:Total IRA Gross distrib." and Sell the holdings to be converted. This generates the cash that will be transferred to the Roth account and associates the correct tax line item with the transfer.
    • Working in a taxable account, create a split transaction or, for better clarity, two separate transactions on the same day that transfer the cash from the traditional account to the taxable account and from the taxable account to the Roth account. Note that the transfers must be recorded in a taxable account or the Tax reports will not pick up the distribution. The discussion referenced above discusses a variation that does not require the Tax line item to be set in the Traditional account. I have not experimented with that.
    • In the Roth account, use the cash transferred to Buy the securities.

    If you would like Quicken to make improvements in this area, please review, comment, and vote on this Idea

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  • geeggross
    geeggross Member ✭✭
    thanks Jim for your feedback! I have read the enclosed threads and thanks for sharing those. But since this issue has been brought up over 8 years ago and still continues, Developers need to address this. Too many steps to go through to accurately record this. Proof is in your reply to me. As we all know, the Traditional IRA while a tax-deferred account does record my Partial Distributions of cash to my operating funds account as a taxable event and the distribution shows up in my Tax Summary account. Likewise, I want to be able to distinguish my partial distribution (of cash or shares of stock) into a taxable cash account from those I do as a conversion going to my Roth IRA and they should be recorded similarly as taxable events. The software also needs to capture (or the subscriber needs to input) the value as of the close of business on the day of share transfer so that the amount migrates its way to the Tax Summary report for income recordation.
    As more and more baby boomers are confronted with these issues and to the extent that they become subscribers to Quicken, I believe Quicken should have their developers address this issue now! I am sure that there are many subscribers out there who have no idea how to manually complete this task. I say that based upon the inaccuracies of recording keeping that I see at tax prep time of year.
  • geeggross
    geeggross Member ✭✭
    Thanks, Jim Herman, for your response! I submit my vote in favor of having Quicken Developers initiate the task of developing the coding to fully provide accurate accounting of the aspects of IRA Distributions in the form of Conversions to Roth IRA. Perhaps segmenting IRA Partial or Full Distributions to taxable accounts versus IRA Partial or Full Distributions to Roth IRA accounts. And ensuring that any distributions appear in the Tax Summary Report.
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