Mandatory IRA Distribution

Community UserCommunity User Member ✭✭✭✭
edited October 2018 in
Last year I decided to use QW2005 to keep track of income and expenses for inclusion into Turbo Tax.  I've cleaned up the data pretty much but one issue is still a problem -- &lt_i&gt_Mandatory IRA Distribution and associated Federal Withholding Taxes&lt_/i&gt_.  This has been discussed in this forum and elsewhere ( see &quot_Record withholding taxes on IRA sale&quot_ in the Quicken forum's &lt_i&gt_Investments in Quicken&lt_/i&gt_ and in the discussion in &lt_url&gt_http:://tinyurl.com/awkyk&lt_/url&gt_ ).  It apparently is a continuing bug.In my case, mandatory distributions were taken from two different IRA accounts.  Attached is a spreadsheet based on the transactions generated.  As you can see, there are a fair number of transactions.  Should I set up a dummy cash account to handle the transfers? Or can this be handled in the existing investment cash account without trashing the existing transactions?  Either way, I would appreciate step-by-step instructions for handling the transfers.  Thanks in advance for any help you can give.

Comments

  • Rocket J SquirrelRocket J Squirrel SuperUser ✭✭✭✭✭
    edited October 2018
    I'm not sure I fully understand your question. You do not have to liquidate (sell) securities to satisfy the required minimum distribution. You could move the intact securities into a normal (non-tax-advantaged) account.Would taking that approach help you?
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win7 Pro & Win10 Pro.
  • J_MikeJ_Mike SuperUser ✭✭✭✭✭
    edited October 2018
    > Last year I decided to use QW2005 to keep track of> income and expenses for inclusion into Turbo Tax.> I've cleaned up the data pretty much but one issue> e is still a problem -- <i>Mandatory IRA Distribution> and associated Federal Withholding Taxes</i>.  This> has been discussed in this forum and elsewhere ( see> "Record withholding taxes on IRA sale" in the Quicken> forum's <i>Investments in Quicken</i> and in the> discussion in <url>http:://tinyurl.com/awkyk</url> ).>  It apparently is a continuing bug.> > In my case, mandatory distributions were taken from> two different IRA accounts.  Attached is a> spreadsheet based on the transactions generated.  As> you can see, there are a fair number of transactions.> Should I set up a dummy cash account to handle the> e transfers? Or can this be handled in the existing> investment cash account without trashing the existing> transactions?  Either way, I would appreciate> step-by-step instructions for handling the transfers.>  > > Thanks in advance for any help you can give.Summarizing the first transaction_You sell ABC to generate $1000 cashYou deduct $100 for Fed Taxes - using a Misc Exp transaction?You transfer the remaining $900 to a cash account.You did not state exactly what your problem is but suspect your problem is that QW is only reporting $900 as a taxable distribution instead of the full $1000?The way I handle this type of transaction:Transfer the full $1000 from the IRA to the cash account.Goto the cash account and open the $1000 deposit transaction - i.e., the other end of the transfer.Edit this transaction to add a split line for the $100 deduction for tax with-holding. The tax entry is a negative $100 leaving a net deposit to the cash account of $900. Use the appropriate category for the with-holding.QW will now correctly report the total $1000 distribution for tax purposes and will report the with-holding. Your net to cash is also correct.If this is a regular <monthly?> distribution - schedule the cash account transaction accordingly.If the security being sold is a fund with a constant price of $1/sh, you can also memorize and schedule the IRA sell transaction using a 'Group' transaction.If the security is not a constant price, you will have to enter the sell manually for each distribution.Did I interpret your problem correctly??As an aside, I tried your refenced shortcut but it would not work for me.
    QWin & QMac (Deluxe) Subscription
    Quicken user since 1991

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