Tax Deferred IRA Charitable Distribution

rayonpaul

How to I enter a transaction on an IRA account for a tax deferred charitable contribution so that it reduces the balance of the IRA account and does not increase another account by that amount. The distribution went directly to the foundation and did not pass one of my other account, i.e.. thru say my checking account.

volvogirl

I did a QCD from my Vanguard IRA this year. I entered it as a SELL which put cash into the account. Then I did a withdraw to the category Charity It didn't need to go though another account.

NotACPA

@volvogirl Does this mean that you don't have Tax Attributes set on your IRA?

edokie

Endless issues with Quicken Premier getting the program to recognize and execute a "QCD" (Qualified Charitable Deduction) from an existing IRA account. Sole choice is "Sell". There is not a transaction-category available referencing IRA's or QCD's or RMD's. It appears to be a missing component of Quicken's software. Am I missing something entirely? Tech Support didn't seem to grasp the program's shortfall.

Adding to the problem, Vanguard Mutual Fund doesn't seem to play particularly friendly to Quicken accounts when a QCD is executed… getting that data from Vanguard and into Quicken. Tech Support "solved" the imbalance problem by simply forcing a correction to the cash balance, and a correction to the account's actual total value after QCD's and RMD's were sold. The problem itself was never - fixed - tech support simply forced a correction by using the "adjustment" method.

volvogirl

@NotACPA Sorry just saw your post. No I didn't have any tax set on my IRA. I went and looked and just set the Transfers Out to 1099R Total IRA Gross Distribution. Is that right? But I don't know how to use it. I think what I did (sell & withdraw) was simple and actually what happened in my Vanguard IRA.

I have an old version and manually enter all transactions so I don't know how Vanguard would download it. Vanguard sent me an actual check made out to the Charity and I mailed it to the charity.

Rocket J Squirrel

@volvogirl

I went and looked and just set the Transfers Out to 1099R Total IRA Gross Distribution. Is that right?

No. In general, you want to set it to Total IRA Taxable Distribution. I suspect you are at least 70½ but not yet 73.

But I don't know how to use it.

When you make a deposit into a taxable account which is a transfer from the IRA, that will show correctly as taxable income.

IRA distribution FAQ is here:

https://community.quicken.com/discussion/comment/17093491#Comment_17093491

volvogirl

Yes I see all that. BUT this was not a deposit or transfer to any of my accounts. Yes, I'm over 70 1/2 but not 73 so not taking RMD yet. But even if I was taking a RMD and the whole amount was a QCD it would not come as a deposit to me. It went directly to the Charity.

Rocket J Squirrel

Correct. The only time the Taxable attribute comes into play is when you make a deposit into a taxable account which is a transfer from your IRA.