How can I get my income reports to reflect true income transfered not withdrawn from 401K
This has never been corrected. I'm dealing with Charles Schwab and Chase Bank. I'm using R54.16
I would like my weekly transfers from Charles Schwab that get deposited into my Chase account, to able to show as income. It currently only shows as a withdrawn, and my income reports do not reflect this money as income. BTW, I also have an amount, at the same weekly transfer, withheld and paid to the Feds for taxes. Its recorded as taxes paid to Feds.
I've talked to support 2x's and the first gave me bad information and I've been unable to go back to a prior version. The second recommended I send in this question
Answers
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@Digger Dave the account at Charles Schwab is a 401(k), but what type is the Chase account?
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The Chase account is a checking account. So it's moving from pre tax to a taxed amount, hence the Fed deduction at each transfer.
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@Digger Dave there may be other ways to do this, but I find the simplest thing to do is to set up an "unlinked" transfer.
Out of the 401(k) account, use a Withdrawal transaction for the amount going to the checking account with a category such as "Distribution from 401(k)" or anything you feel is appropriate.
Use a Deposit transaction for the amount into the checking account with the same category. It should be a split transaction which has the gross amount of the distribution net the withholding amount. The net amount of the transaction should be equal to the amount of the withdrawal from the 401(k) account.
To automate this set of transactions, set up, or use "Add Reminder" to create weekly reminder transactions for both sides of this "transfer".
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Wouldn't this be this same as what is needed for an RMD withdraw?
UPDATED WRONG FAQ because it is a transfer to a taxable brokerage account.
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Ok, so what I am understanding is, You cannot automate this.
I already have the split happening at the brokerage company and they forward that money to the feds. The balance of the "split" not seen by quicken as a dual transaction, but just one, Brokerage>checking, has to be a withdrawal, and cannot be labeled as a transfer.
If I could, I would like Quicken to be able to let me call it a Transfer. If it were a transfer, I could label the incoming money as Income, and it would be automated.
Have I misunderstood your comments?
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I have so much going on, I was preferring automation as opposed to manual input. With Manual input, comes error.
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@Digger Dave this can absolutely be automated. It would be with two separate transactions instead of one "linked" transfer.
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@Digger Dave please take a look at the information that @Chris_QPW it is similar to what I wrote, but the difference is that a "linked" transfer transaction is used, but the concept is the same. The linked transfer is within the split transaction in the checking account.
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as mentioned - this comes up with the IRA RMD withdrawal….
A "transfer" would not have a category that would imply any kind of "income" - since it's a "transfer" of funds and not in or out -
But - setting it up with TWO transactions - one for the Withdrawal and one for the Deposit -
then you can Categorize each of them any way you want1 -
From what I see it can be one reminder in the checking account, net amount is what is deposited (which gets matched when you download the deposit).
This below is the Tax Schedule report:
The important part is that the tax lines have to be in a taxable account.
In the tax planner:
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Oops, I forgot the transfer.
The tax line for the 401K should be set as or you will double count it:
You can do it the other way, but does involve two transactions.
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So the money coming out of the brokerage account is only allowed Withdrawal, write check, make a deposit, or online payment. So what I'm understanding is leave the money leaving as withdrawal and recognize the amount coming into the checking as deposit.
When I try and recategorize that transaction, in the checking account, it asks "This transaction was created as a transfer to an investment transaction, if you edit the category, the corresponding transaction will be deleted, Yes or No".
What step was I not following. I appreciate all the help,
Quicken help had told me to say yes and re input the transaction in the brokerage account as adjustment amounts to keep the balance accurate. That wasn't helpful.
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I'm looking for a debit to my brokerage account and a credit to my checking. It does that now, but it doesn't let me re label the category. as income or anything without deleting the whole transaction as I said in my previous post.
It may be plain and simple to you folks and I'm not getting it. Bear with me.
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@Digger Dave I think there are many good-hearted people here trying to help and maybe we need to step back a bit -
Out of the 401(k) account, use a Withdrawal transaction for the amount going out of the 401(k) account with a category such as "Distribution from 401(k)" or anything you feel is appropriate.
Use a Deposit transaction for the amount going into the checking account with an income category such as "Income from 401(k)". It should be a split transaction which has the gross amount of the distribution less the withholding amount. The net amount of the transaction should be equal to the amount of the withdrawal from the 401(k) account.
As @Ps56k2 mentioned, we need it this way because a regular "linked" transfer does not have a category, so you cannot designate it as "Income".
To automate this set of transactions, set up, or use "Add Reminder" to create weekly reminder transactions for both the Withdrawal from the 401(k) account and the Deposit to the checking account.
Quicken can be confusing at times because there are many ways to get what you want done, and every user has their preference. That is why when you ask a question, you may get multiple answers that "mush" together and may cause confusion.
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One thing I will say, there is no way that the downloaded transaction in the brokerage account is going to be right. It will have to be changed or deleted.
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@Digger Dave You indicated you wanted your "reports" to indicate this transfer transaction as income. Specifically, what "reports" do you mean? What appears in an "Income and Expense by Category" report may well be different than what appears in various tax reports. Also, are you referring only to printable 'reports' as presented in the Reports pull down menu, or are you also referring to 'dashboard' screen presentations.
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I was referring to pull down dashboard Income. Spending>Go to spending>toggle income. Not really written reports. I'm not yet using this for tax reports.
Chris QPW somewhat answered or confirmed my problem. there is no way that the downloaded transaction in the brokerage account is going to be right. It will have to be changed or deleted. Since this is the case, I don't need further help. I guess if this was an annual situation, it wouldn't be bad, but i set it up weekly (52x's/yr). It won't happen.
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I think I mislead you, what I was trying to say is that there is no way that without interaction from you. That "interaction" it "might" be able to be automated depending on what transactions are actually downloaded.
What is the "Action" type in the investment account?
Is it for the full amount, or does it already have the tax taken out?
I will assume that the deposit in the bank account is for the net amount, right?
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