nav[aria-label="Primary Navigation"] { padding: 0; & ul { list-style: none; width: 100%; display: flex; flex-direction: row; justify-content: start; align-items: start; gap: 30px; padding: 0; & li { margin: 0; } & ul li { list-style: none; } } }

IRA Distribution

Rick56

I am starting a monthly distribution from one of my IRA accounts. The distribution is paid from a MM in the IRA and is later transferred to cash in a Non-IRA account. The broker sends me 3 lines electronically for the IRA account (regular download). A gross sales line, a federal tax withheld line, and a cash line (gross minus tax) transferring to the Non-IRA account. The broker also sends me a deposit line (cash) within the Non-IRA account (regular download). I have reviewed the FAQ Best way to handle distributions from IRA and it seems there is nothing additional I need to do since the broker is already sending the necessary transactions. The problem is that I see none of this activity in my Tax Planner. What info would you need to diagnose this? Or what do I need to check?

Find more posts tagged with

Comments

Rocket J Squirrel

Make sure the tax schedule line for transfers out of the IRA is set to 1099-R:Total IRA taxable distrib.

Rick56

Rocket J,

I changed that based on what I read in the FAQ. Thanks

OBTW - Love the username….. Nothing up my sleeve……

Rocket J Squirrel

The transaction that transfers cash from the IRA must be entered as a deposit in the receiving account. You may need to replace the downloaded transaction manually.

Rick56

It is downloaded as a deposit and the payee/category is the sending account.

Rocket J Squirrel

That looks fine. But Quirken, er, Quicken is quirky. It may be that it has to see the user enter the deposit rather than receive it via download. Nobody knows why this must be entered as a deposit. So it's possible it must also be hand-entered. You could try the experiment in a copy of your data file, replacing the downloaded transaction with an identical hand-entered one. If that fails, I'm out of guesses.

Rick56

I will try that. Thanks.

"Quicken is quirky". Who'd a thought it?……..😂

q_lurker

I think more to the point (as I understand it), the tax payments withheld needs to be reflected in the taxable account.

IRA account should show one transfer out for the gross amount

Taxable account should show one transaction with split categories

Line 1 - the gross amount transferred in from the IRA account
Line 2 - the fed tax withheld
Those net to the amount actually added to the taxable account.

Tax Schedules reports default excluding the IRA type accounts, so if the withheld amount is in that account, the reports miss it. I am not sure about that status for the tax planner.

I don't enter these often enough to be absolute about what needs to be entered manually, what downloads can be accepted, and what edits can be made to downloaded transactions.

Rick56

The gross amount disbursed, tax taken out, transfer origination transactions are in the sending (taxable) account. These are separate transaction sent by the broker. The after tax amount was transferred to and deposited in the Non-IRA account with transactions also sent by the broker. If the transactions must be as you document, I would have to delete the downloaded transactions and manually create them in the manner described. That is if I understand what you wrote. I think I will just leave well enough alone and not worry about the tax planner. It has always been "quirky" (as you called it) anyway. Thanks for the help.

Jim_Harman

Making the changes as described above will also make Quicken's Tax reports track these distributions correctly, in case that matters to you.

Rocket J Squirrel

Rick: I think I will just leave well enough alone and not worry about the tax planner.

Jim: Making the changes as described above will also make Quicken's Tax reports track these distributions correctly, in case that matters to you.

This makes it worthwhile, in my opinion.

q_lurker

https://community.quicken.com/discussion/comment/20393472#Comment_20393472

Just to be clear, I (q_lurker) interjected myself into this discussion, separate from Rocket J and others. The 'you' you used was not particularly clear.

That said, I understand your situation - that the F (financial institution aka broker) sent several transactions. That is a common set that many FIs provide. But that does not make them 'right' for the way that Quicken operates best. That is why users put together the FAQ you cited — to provide direction to other users on a 'better' way. My common message is that you can't trust the FI to provide data the way you need it. Yes, to get the info into the right slots for Quicken to use it most effectively, you sometimes need to undo and redo the data. This is such a case — depending on exactly what you need Quicken to do for you.

Leaving well enough alone is fine — if it suits your needs. I don't see it as a big problem to enter two transactions that accomplish the same net effect as the ones the FI downloaded. That's my choice. Indeed, I more commonly enter such transactions manually before downloading and do not accept the downloaded versions.