Fidelity IRA Transactions Downloading Incorrectly (Double Withdrawal Issue)

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This discussion was created from comments split from:

No downloads in a week...

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dkrawchu

The Quicken team does need to work with Fidelity to accurately reflect correct transactions from an IRA (Tax deferred account), as I have a double withdrawal. One for the total amount and two more for the cash transfer to checking and the other for withheld fed taxes. Who at Quicken is looking into these errors and correct them?

quicken premier _fidelity transaction error.jpg

Quicken Kristina

Hello @dkrawchu,

Thank you for letting us know you're seeing this issue. To help troubleshoot, please provide more information. Is this a frequent occurrence, or has it happened only once? I notice that the two labeled Withdrawal are marked as cleared, while the XOut transaction is not. Was it a manual transaction or a reminder that didn't match when the withdrawals downloaded?

I look forward to your response!

Jim_Harman

@dkrawchu Do you enter a split deposit in the receiving account to handle the transfer from the IRA and the withholding? This might be entered manually or via a Reminder. That is what you need to do for the tax implications of IRA distributions to be recorded correctly in Quicken.

That should enter a WithdrawX in the IRA for the gross amount, and you should delete the two downloaded transactions.

Boatnmaniac

@dkrawchu - Quicken has never had a good built-in process for correctly managing IRA distribution transactions and correctly capturing the tax implications in the Tax Reports and Tax Planner. The process mentioned by @Jim_Harman is considered to be a best practice workaround to resolve this issue and it does work pretty well at properly reflecting the transactions in both the IRA and the receiving accounts as well as properly capturing the distributions details correctly in the Tax Reports and Tax Planner.

One thing I would add: Go to Account Details for the IRA account and make sure the Tax Schedule for withdrawals is 1099-R:Total IRA taxable distrib.. When setting up IRA accounts it seems the default Tax Schedule for withdrawals tends to be 1099-R:Gross IRA taxable distrib. which will not capture distributions as taxable so you will need to make sure 1099-R:Total IRA taxable distrib. is in that field.

This is planned for improvement for how Quicken handles IRA distributions but we do not yet know when that will be done and you can read the discussion and plan here: Improve handling of IRA distributions, including QCDs and Roth conversions.

NotACPA

@dkrawchu I'm a Fidelity customer also, and they, in their systems, are able to record the tax withholding in the retirement account. Q isn't able to record a tax action in a non-taxable account.

SO, Fido downloads 2 transactions into your IRA account, the transfer of the net amount and the tax w/h.

It sounds like you recorded the transfer for the net amount yourself, and then Fido downloaded something different.

The only thing that you can do is to delete the tax transaction in the IRA account and change the w/d FROM the net amount to the GROSS amount and then edit the transaction in the taxable account to be a split for the net amount as the deposit with split lines reflecting the Gross transfer and the tax line in the split as a negative amount so as to equal the net.

And given that the original post that @Boatnmaniac referenced is from 2019, I wouldn't hold my breath waiting for it to happen.

Boatnmaniac

And given that the original post that @Boatnmaniac referenced is from 2019, I wouldn't hold my breath waiting for it to happen.

But the idea was changed to "Planned" in Aug 2023 so about 1-1/2 yrs ago. It is not uncommon for changes that might be more complex to implement to take 1-2 yrs or sometimes even more so I wouldn't rule it out quite yet. And if/when a Planned change is no longer planned the status is usually updated to reflect that but that hasn't happened, yet.

In addition, during a telecon I had with some of the Quicken Dev Team (including 2 managers) about a year ago I was told this improvement is in their roadmap. Of course, they would not tell me what the priority is for this nor a schedule for it. And since there is a workable (albeit somewhat awkward) workaround my guess is this is not one of the top priorities for them but that's just my guess. So, I agree, and am not holding my breath waiting for this to happen.

Jim_Harman

If they are not going to implement an improved way to handle IRA distributions soon, it would sure be nice if there were a Help or Support page users could refer to rather than SuperUsers having to detail the instructions each time this issue comes up.

Boatnmaniac

https://community.quicken.com/discussion/comment/20531044#Comment_20531044

Great idea! Maybe @Quicken Kristina would care to comment on this suggestion?