IRA Withdrawals Not Showing Up in the Tax Planner

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Hi -
I have an IRA account at Charles Schwab and a taxable account also at Charles Schwab. Each month on the 1st of the month, there is an automatic transfer from the IRA account to the taxable account. Then when I need the money, I transfer it from my Schwab taxable account to my Wells Fargo Checking account. When I look at the tax planner, it does not show any of these transactions in the "Taxable IRA/Pension Distributions" section. These transactions are coded as transfers (Quicken detects the transfer and codes it that way), so the category is the name of the account the transaction is from or went to. I can't code it as a taxable transaction and Quicken doesn't seem to recognize that I transferred money from an IRA account to a taxable account. What is the right way to code this so that the Tax Planner picks it up?

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  • markus1957
    markus1957 SuperUser, Windows Beta Beta
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    This is a longstanding bug that has been reported numerous times over the years, acknowledged as such by Quicken yet never fixed. For whatever reason, transfers from IRAs are only picked up in the tax planner if they are funneled through a spending account.

    The workaround is to split the transfer, so it is routed through a checking account and immediately to the investment account. I use a scheduled income reminder originating in my checking account that is a category split of an incoming amount from the IRA and the same amount as a negative number going to the investment account for a net zero transaction.

    Frustrating that this can't be fixed. Crazy thing is last time I checked, a scheduled reminder showing a transfer from an IRA to an investment account shows up in tax planner until it is entered as a real transaction. This also impacts a Roth Conversion transafer in the same way. If Quicken ever does get around to fixing it they should also make sure it works for a traditional IRA to Roth Ira transfer.

  • Ps56k2
    Ps56k2 Alumni ✭✭✭✭
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    this is an issue with (QWin) Transfers… You can’t have both the Transfer AND also a Category so it gets picked up for the Tax Planner or any other Reports.
    I have setup a couple of manual Reminders with specific Category entries to account for certain Expenses —> Income which normally would be entered as a Transfer. And lastly, you need to make sure you use or create a Category that references a correct Tax Line Item to get properly reported.

  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    edited May 2023
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    For whatever reason, transfers from IRAs are only picked up in the tax planner if they are funneled through a spending account.

    I beg to differ. My distributions go directly from my inherited IRA to my brokerage account at the same firm and they are properly recorded as taxable distributions.

    Two key items:

    • The IRA must have "1099-R: Total IRA taxable distrib." as its Transfers Out tax line item.
    • For whatever reason, the transfer must be entered as a Deposit into the receiving account, with the IRA as the transfer category. Any other type of transaction will fail to be noticed as a taxable distribution.

    For more info, see the IRA distribution FAQ.

    Quicken user since version 2 for DOS, now using QWin Biz & Personal Subscription (US) on Win10 Pro.

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