Non-taxable transfer from Retirement acct to IRA

NotACPA

This is showing in the Tax Planner as a taxable income item.

The Tax Schedule item from transfers out of the Originating account is blank, as is the Transfers In item for the receiving account.

Rocket J Squirrel

That seems odd. Show us screen shots?

mshiggins

Does the transaction itself have a tax line item assigned? Which of the Enter transaction choices did you use to make the transfer?

NotACPA

From Sending account (TIAA):

The actual transaction in the TIAA account:

Tax Planner:

Receiving Account (ETB RIRA):

The transaction in the receiving account (ETB RIRA)

NotACPA

We're trying to close out the TIAA account from one of my wife's former employers … but we're not ready to take funds out of her retirement accounts, so we're having the money transferred to another IRA.

This is the 8th year in a 10 year series of transfers … and the 1099-R from TIAA always shows this as Non-Taxable.

NotACPA

Just now I tried changing the TIAA transaction to "Cash Transferred out …" with no change in the results.

I also tried changing the Tax Year in the "Cash Transferred In … " txn to 9999, with no change

And to 2022, with no change in the Tax Planner

NotACPA

Is there some way that I can exclude the ETB RIRA account (and the TIAA account, if needed) from the Tax Planner?

This is the only seemingly tax related txn in either account.

Jim_Harman

I don't think there is any way to control which accounts are included in the Tax Planner. Earnings, capital gains, etc for accounts marked Tax Deferred are excluded.

Does this transaction show up in the Tax Schedule report?

NotACPA

@Jim_Harman Yes, as a "Total Pension Taxable Distribution" on the 1099-R

AND, neither the sending nor receiving accounts were supposed to be included in that report:

markus1957

I just did a$5K IRA to IRA WithdrawX as a test and it does not show up as taxable in tax planner. Both accounts are set up as regular IRAs.

Adding- last year I rolled my 401k into an IRA using a Cash Transferred Out. It did not report as taxable in tax planner.

What account type is the TIAA?

Adding- Just tried a tax-deferred 529 College Savings Plan to IRA WithdrawX and again no taxable income generated in tax planner.

Jim_Harman

Yes, as a "Total Pension Taxable Distribution" on the 1099-R

AND, neither the sending nor receiving accounts were supposed to be included in that report:

Aha: The transaction is coming from the built-in, hidden and separate "Tax impact of 401(k) Accounts" account.

I have never understood what that account is for, but it has something to do with capturing 401(k) withdrawals. If you select All accounts and check the Show separate accounts box, you can see that it is selected in the Tax Schedule report.

NotACPA

The TIAA account is a "401k or 403b". The receiving account is a "Traditional IRA".

markus1957

I checked the transactions in my TaxImpactof401kAccounts register and only contributions from paychecks were recorded as MiscExpX transactions. No MiscIncX transactions were present in the register even though there were multiple times when 401ks were rolled to regular IRAs. No withdrawals were ever made from the accounts other than the rollovers.

If in Tax Planner details you see that the TaxImpact account register transaction is the source of income, you might consider deleting the transaction in the TaxImpact register. That can sometimes cause strange behavior if you are still actively contributing via a paycheck wizard, but if those days have passed, it would most likely work to remove the transaction from Tax Planner and the report.

The Tax Impact account register is hidden. An easy way to access it is use Menu>Find/Replace and search for Cleared Status Contains Uncleared. Then click on the hypertext date in one of the TaxImpact listings.