Investing Split Transaction not handled properly

Ed V

I have added split transactions in my IRA account for a normal monthly distribution dated yesterday 1/72024 (not future dated). Split includes two lines: [Checking Account] and Federal Taxes

I just noticed my account balance is messed up in the net worth report and account balances are not shown correctly under certain interval selections. If I set the report to Yearly, Current Year, Monthly columns the ending balance for last year is correct. If I change to Yearly, 2023, Monthly columns the ending balance for last year is incorrect. It is lower by an amount different than the split transaction or each of the split amounts. If column selection is set to none then the totals are correct. If I change the split transaction to two separate entries all reports are showing correct.

Anyone else using split transactions for expenses in an investing register successfully?

Jim_Harman

This is not directly related to your question, but when recording IRA distributions, you should not be entering a split transaction in the IRA account for the tax deduction. The reason is that if you do it that way, the deduction will not be picked up by the Tax reports or the Tax Planner.

Here is a "Cheat sheet" for entering IRA distributions:

In the IRA, click on the gear at the top right and select Edit account details. Click on Tax Schedule and set Transfers out to 1099R: Total IRA taxable distrib., like this:

For the taxes to be recorded properly in Quicken, the transfer must be entered as a transaction in the receiving account. It can be a banking or an investing account, but it must be taxable, not another IRA for example.

In the receiving account:

1)  Enter a Deposit transaction for the net amount of the RMD...a positive number.

2)  Split the category:

• Line 1 of the split:  Category =  the IRA account name in [square brackets] and the gross distribution amount...a positive number.
• Line 2 of the split:  Category = the Fed taxes withholding category that you use...a negative number.
• Line 3 of the split:  Category = the State taxes category that you use...a negative number.
• Total of the split:  Must equal the net amount of the deposit.

If you receive the distributions regularly, you can set up this transaction as an Income Reminder.

In the IRA account:  Delete any downloaded brokerage transactions for

• The net distribution
• The Fed taxes withheld
• The State taxes withheld

With this setup, the taxable income will be shown in the “1099-R Total IRA Taxable distrib.” and the tax withholding in the withholding sections of the Tax Schedule report, and the Tax Planner will handle the distribution correctly.