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Investment area: Option to Select Div Income as TAX Exempt or Taxable

pactaz

I've got an investment account with the "account selected as "ROTH"" However, monthly when my Fund distributes a Dividend for the Money Market it AUTOMATICALLY gets categorized as DIV Income Sched B. That is totally wrong in a ROTH Account as that Dividend is TAX FREE and should be automatically or usere defined as TAX FREE (non taxable).

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Jim_Harman

In the Roth account, click on the gear at the top right and select Edit account details. The account should be set to Tax deferred. This excludes the account from Tax reports and thus any dividends in the account should not show as taxable income in the tax reports or the Tax Planner.

The _DivIncTaxFree Category is used for securities like tax exempt bonds, to exclude them from the tax reports and tax planner when they are held in a taxable account. That option is set on the Security Detail page.

Jon

Which Tax report is showing Roth dividends? I looked at both the Schedule B report and the Tax Schedule report and neither one is showing dividends from my Roth IRA (or any other retirement account). They are categorized "Investments:Dividend Income" which is assigned to Schedule B.

Did you perhaps edit your report and change the default Accounts setting which excludes retirement accounts?

pactaz

This is Quicken Classic Premier Version 7.8.1 (Build 708.53916.100) running on MAC OS 14.5.

So, bottom line I can't change the "account" to ROTH using @ Jim_Harman’s suggestion. BUT, inside the ROTH account you have to categorize the securities as "Investments:Dividend Income Tax-Free" so they don’t show up on your Tax Schedule.

Jon

Jim's suggestion was for Quicken Windows, I think, not Mac. In Quicken Mac, right click on the account in the sidebar, select Account Settings, and the Type pulldown should be set to Roth IRA:

If you can't select "Roth IRA" as an account type, it may be because your account was created as a banking account rather than an investment account, in which case you'd have to create a new account from scratch as a Roth IRA.