RMD-Income Problem

System

This discussion was created from comments split from: Required Minimum Distributions (RMD).

GreyEagle

Even when "1099-R: Total IRA taxable distrib." is selected as the tax schedule associated with transfers in the account, RMD does not show on income reports. I've read and tried all the comments and proposed solutions presented in the Quicken Community on how to set up IRA withdraw transactions and the target deposit transactions. NONE WORK. RMD income does not show on Income Reports. Maybe the procedures worked on prior editions of Quicken, but not now. The IRA account withdraw transaction requires the transfer account be entered in the category block. Then when you edit the target account you can't change the category to report the amount as income (IRA Taxable Distribution). Thus the RMD distribution will not show on the income report.

As a long time Quicken user I'm very much disappointed in the company. This issue has gone on for a very long time with seemingly no effort by Quicken to solve this defect in the software. It's impossible to get help on the Quicken support line. These folks, from their international location, are friendly and try their best to help and do their job. But the RMD issue is not on their checklist and every question you ask will result in a very long hold with no credible information or solutions provided. If you ask to speak to a US based representative this will result in another very long hold and a response of "can't do it".

[Removed - Rant]

Does anyone have a workaround to solve the RMD-income problem?

[Removed - No Soliciting]

Thanks in advance for your help.

Rocket J Squirrel

Do not use a Withdraw transaction in the IRA. You must use a Deposit in the receiving account, with the IRA the source of the transfer. Then the distribution will show as taxable income.

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

Jim_Harman

The above will get the IRA transfer recorded correctly for the tax reports.

For the income report, I recommend you use the Income and Expense by Category report.

Depending on which report you are running, for the transfer from the IRA to be included, you may need to click on the gear at the top right to customize it. Include the receiving account and de-select the IRA account. On the Advanced tab, select "Exclude internal" in the Transfers section. For some reports, the transfer may appear in a separate section at the bottom.

GreyEagle

I appreciate your comment, but I have done the afore mentioned procedure dozens of times. It does not work, at least for the current edition of Quicken Deluxe. I think the problem is that the step:

"Set the tax attribute "Transfers Out:" for the IRA account to "1099-R:Total IRA taxable distrib."

doesn't seem to take. Then if you try to select this category in the "Deposit" transaction quicken advises:

"This transaction was created as a transfer to an investment transaction. If you edit the category, the corresponding transaction will be deleted."

Therefore the procedure is a dead end. Setting the tax aspects in the account details doesn't work and there is no way to set the IRA taxable distribution category in the "Deposit" transaction, so therefore the RMD income doesn't show in the "Income Report".

This is why I claim that Quicken has a major software flaw in the program.

Rocket J Squirrel

@GreyEagle it works for everyone else.

"Set the tax attribute "Transfers Out:" for the IRA account to "1099-R:Total IRA taxable distrib." doesn't seem to take.

What does "doesn't seem to take" mean? Click OK and it "takes".

Then if you try to select this category in the "Deposit" transaction

What is "this category"? The Deposit transaction should have [Your IRA Name] as its "category", indicating a transfer from the IRA. You should not be trying to change that field to something else.

Jim_Harman

Note that in the example above, you do not enter or accept a downloaded transaction in the IRA account that withdraws or transfers the money out of that account.

You go to the receiving taxable account and enter a Deposit transaction that specifies the IRA account in [square brackets] as the Category. If you do something different, the transaction will not be picked up by the Tax reports.

q_lurker

Also what do you mean by "Income Report" since there is not a standard one by that name?

Is this a saved report you have been using for a long time? Based on what basic report?

Are you starting from a standard off-the-menu report? If so, what is the actual name of that report? How are you customizing that standard report?

tuscanyi

[Removed - Rant]

TPerk

Creating a Deposit with the split including transfer from IRA looks like it works well. HOWEVER when running a file validate the transaction is called out as defective!

Jim_Harman

@TPerk

Did you create the Deposit by editing an existing transaction, or did you create it from scratch? Sometimes editing a Transfer transaction results in a broken transfer.

TPerk

No…..created new deposit. Split included IRA account, and it seems validate considers this editing a transfer….maybe….don't really know.

Rocket J Squirrel

https://community.quicken.com/discussion/comment/20408538#Comment_20408538

Never heard of that happening. Please show us the actual excerpt from the validation log.

TPerk

https://community.quicken.com/discussion/comment/20408547#Comment_20408547

My mistake. I deleted and re-created transactions and now validate shows no errors. Don't have original excerpt because never saved the log files.

TPerk

The steps discussed above are working, but I would still like to see my RMD in various reports.

What do you folks think of this split?

Gross RMD is Income Category for reports.

(Reminders) is a "dummy" account that I originally created to use on the Home Page Manage Bills and Income. For example one of my repeating reminders is to insure that Visa is paid every month. The account is "separate" and hidden and excluded from all reports. This seems to have been working great for many years.

One or two category tax attributes will have to be changed to avoid double numbers on Tax Schedule Report

I am wondering what negative effects, if any, using this account and the split shown here will have.

Thanks, Tom

RMD Split.JPG

TPerk

Steps outlined above are working, but I would still like to see RMD in various reports. What do you folks think of this split?

Gross RMD is income category

Reminders is an account I use only for administrative stuff, like reminding me monthly on the Home Page not to overlook a credit card payment (example attached). The account is “separate,” and is hidden from all reports. This has worked great for many years, but I am wondering what negative effects, if any, using it as shown in this split would have.

RMD Split.JPG

Reminder Transaction.JPG

Jim_Harman

Most of us would use actual Quicken Manual Reminders for this and not set up a special account. You may want to give them a try if you are not already.

Here is a detailed "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 this transaction up 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. 

TPerk

Jim,

This is EXACTLY what I do. The Gross RMD category and the Reminders are in addition and are simply to get RMD included in various reports. What I am concerned about is if there will be any negative consequences when using my "dummy" Reminders Account

TPerk

Jim,

I truly value you as a credible Q resource, but I have to wonder…..Did you really read my post??? Your response was not necessary, and it did not address my concern.

Respectfully, Tom

Rocket J Squirrel

@TPerk

Steps outlined above are working, but I would still like to see RMD in various reports. What do you folks think of this split?

I think you're way over-complicating this. To see RMD in various reports, I simply include the destination account in the reports. Does that not work well enough for you? For example, if I run the Cash Flow report and include my destination brokerage account (which is not included by default because it's not a "banking" account), I see the RMD under Inflows as "FROM <name of IRA account>"

TPerk

https://community.quicken.com/discussion/comment/20409556#Comment_20409556

Seems you have to enable tansfers for this to happen, in which case one gets lots of transfers from other unwanted accounts. Cannot remove unwanted accounts. They are needed for reports.

Jim_Harman

On the Advanced tab of the report, you do not "enable transfers". You set transfers to "Exclude internal". If the report includes your spending accounts and not the IRA or other accounts that may be feeding them, you will see the transfer. Depending on the report, it may be in a Transfers section at the bottom. If for some reason you do not consider transfers from the other accounts as "income", you can go to the Category list and un-check the other accounts where they appear in [square brackets]

Robert Chiarulli

The procedure does not work for me either @GreyEagle @Rocket J Squirrel

Jim_Harman

@Robert Chiarulli which procedure are you referring to, the one to record distributions so they show up in Tax reports, or the later issue with spending reports?

If it is the Tax Planner and Tax reports, be sure you are following the procedure exactly as discussed in my comment in the discussion below. Don't assume you can edit an existing transaction to achieve the same result.

https://community.quicken.com/discussion/7945344/rmd-withdraw-from-ira-non-tax-to-trust-taxed-account

MollyG

So, let me start by saying that I appreciate the community in general, and Mr. Squirrel, and his many responses across a multitude of posts, in particular. The tax schedule button has been removed but somehow the tax property on my IRA account was set correctly…perhaps this is Quickens new default value? I kept the 'sold' downloaded records from the IRA account and then entered, into my checking account, a deposit acknowledging the monies from the IRA account with the additional splits going to state and federal taxes. It all showed up on the taxable summary report so I celebrated and shut down. Now I realize that the income and expense report is NOT picking up the IRA distribution as income in the income & expense reports. In essence, I'm having the exact same problem as Grey Eagle. I spent time on line with the Qwin support team and got absolutely no where….he told me to create a transfer within a new income category but I have trust issues since that seems to contradict the nature of the software itself. So - what am I doing wrong? Grey Eagle - did you ever solve the income problem? RJ Squirrel - any suggestions. This is going to occur monthly so I'd like to get it working correctly. Playing with all the transfers in customizing reports is problematic as well since it treats cash transfers as 'income' when they are not technically income but 'savings'. Thoughts??

Rocket J Squirrel

@MollyG

The tax schedule button has been removed but somehow the tax property on my IRA account was set correctly

I don't understand. The Tax Schedule button should remain. If it's not there, how can you see the tax schedule info of the IRA? Show us the dialogs captured below with private info redacted.

I'd advise trying to fix the IRA rather than going down a path of categorized transfers.

MollyG

There is no tax schedule button on the screen when I choose edit on any of my IRA accounts. There used to be but now its gone! That is why I contacted Quicken support this morning. They said it had been removed. That said, I can tell that the transfer out tax status is 'correct' by looking at the category list - see below. My thought was that the transfer out as a gross IRA distribution would trigger the income line on the report. I know others have talked about differences in accounting standards as being the problem on reports. Open to suggestion. The distribution did come from a SEP IRA, not that this should matter but I'm reaching….

Jim_Harman

I have never seen an investing account that does not have a Tax Schedule button when you edit the account details. Could you please click on the gear at the top right of the account, select Edit Account Details, and post a screenshot of the Account details window?

Rocket J Squirrel

Yes, please show a screen shot of the missing button. No one else has ever reported this to my knowledge.

I think maybe you should try some troubleshooting steps like Validate & Repair and perhaps reinstalling Quicken.

But I can tell you you're not seeing taxable income in reports because you're using the wrong tax line item. It must be 1099-R:Total IRA taxable distrib.

MollyG

I ran a validation report without issue. If memory serves me correctly, the tax schedule was on the general tab. Running R53.32, Premier. Screenshot below. Now you know why I triaged in support. I was flummoxed.

MollyG

FYI, I just reinstalled and still, nothing. No tax schedule option