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IRA quarterly fees being booked as an expense

Michael R

My IRA has quarterly fees that are charged on the account to manage the account. It books as an expense on my budget report with distorts the overall expenses. How do I eliminate this as an expense and let it become a part of the overall IRA performance?

Conversely, I don't see dividends and other increases in IRA book as income. Which is correct.

Any hint would be appreciated. This has plagued me for several years now.

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Jim_Harman

In your budget setup, click on Budget actions and select Accounts to budget. If the IRA account is not selected, income and expenses in that account should not be included in your budget.

If you want the administrative expenses to show as a drag on the account's performance, edit the Category you are using for these expenses and check the "Affects investment performance" box.

Michael R

Wow that totally worked! You are amazing. Thank you so much. That gets my income statement closer. I wonder if there is a way to manage internal transfers, so they don't book as income or expenses. My broker moved money from one ira to another brokerage account and it reflected a $55,000 expense and $55,000 income.

Thanks so much. I wish there were professional consultants that could help users like me manage this stuff.

Jim_Harman

I wonder if there is a way to manage internal transfers, so they don't book as income or expenses. My broker moved money from one IRA to another brokerage account and it reflected a $55,000 expense and $55,000 income.

This depends on which report you are using and whether you are concerned about the tax implications of this move. Strictly speaking, moving money from one account to another is neither income nor an expense. Moving money from an IRA account may be a taxable event.

If you want to treat distributions from an investing account as income for reporting purposes, you can customize the Income and Expense by Category report so that it includes the "spending" account that receives the transfer but does not include the investing account. Then the investing account will be listed in the Income section of the report as FROM <account-name>.

If you are using the Banking > Cash flow report, again you should include the receiving account but not the source account, and on the Advanced tab next to Transfers, select "Exclude internal". The terminology is confusing, but "Exclude Internal" tells the report to ignore transfers between accounts that are selected for the report (payments from your checking account to a credit card account for example) but to include transfers between the selected accounts and other accounts.

Most other reports have different default settings, but they work the same way: Include the "spending" accounts but not the source account, and on the Advanced tab set Transfers to "Exclude internal". If the report has an Organization setting on the Advanced tab, set it to “Cash Flow Basis”.

You can control which transfers are included in your budget by clicking on Manage Budget Categories on the Budget page and making selections in the Transfers In and Transfers Out sections. These selections will affect the Budget reports.

Michael R

Thank you so much. it is working great now for the first time in like 4 years. I am delighted.