Quicken thinks an IRA withdrawal is an IRA purchase

h stansfield

I am retired, and I have scheduled monthly withdrawals from Vanguard IRA's.

These are set up in quicken as transfers FROM Vanguard TO my bank account. When I enter it via scheduled bills and deposits, I get a flag question that asks "Do you want to record this as a 2025 or 2026 IRA deposit?

I can't close the dialog box without entering one or the other. It's not a deposit to the IRA, it's a withdrawal from it. It's more annoying than anything, it doesn't appear to be affecting any of the tax reports or anything like that….but it's weird.

Am I the only one?

volvogirl

Try deleting that scheduled transaction and set it up the other way around as a scheduled deposit to the bank account first. Especially if they take any tax withholding out of the IRA withdrawal.

Quicken Anja

Hello @h stansfield,

We haven't heard back from you in a while. Do you still need assistance?
Were you able to give @volvogirl's suggestion a try?

Check back and let us know! Thank you.

Jim_Harman

@h stansfield and @Quicken Anja I see the same behavior with my IRA distributions prior to April 15 each year. Although selecting the current year and clicking OK is a relatively simple workaround, it is an annoying bug and is easily reproducible. The process below is necessary to use in order for Quicken to record the distribution and withholding so that they appear in the Tax reports and Tax Planner..

I would summarize the problem as follows:

1)  Set up an Income reminder to record the distribution in a banking account for the net amount of the RMD as a positive number.

2)  Split the Category in the Reminder:

• Line 1 of the split:  Category = the IRA account name in [square brackets] for the gross amount as a positive number. This will create a transfer from the IRA.
• Line 2 of the split:  Category = the Fed tax withholding category that you use, as a negative number.
• Line 3 of the split:  Category = the State tax withholding category that you use, as a negative number.
• Total of the split:  Must equal the net amount of the deposit.

3) Accept the Reminder.

If the deposit is made to a banking account between Jan. 1 and April 15, you will see a dialog titled “Confirm Your Contribution Tax Year”, even though this is a distribution and not a contribution. Select the current year, not the default of the previous year, and click on OK.

The problem also occurs if you enter transaction directly in the banking account, without using a Reminder.