Transfer shares from conventional IRA to for RMD to a brokerage account with basis step-up

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Unknown
Unknown Member
edited October 2018 in Investing (Windows)
I have Quicken 2016 Premier, Version R14.1 (Build:  25.1.14.9).  As part of the RMD from a conventional IRA account, I transferred shares in a security from the IRA to a brokerage account.  I want to record the transaction in Quicken, however, I do not want to carry over all the cost basis calculations.  This is because the cost basis in the brokerage account should be the latest cost of the security at the time of transfer.  How do I record this type of transaction?

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  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    edited October 2018
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    Shrs removed in the IRA, Shrs Added in the brokerage acct.

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • J_Mike
    J_Mike SuperUser ✭✭✭✭✭
    edited October 2018
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    The simplest procedure is to sell the shares in the IRA account, transfer the cash, and then repurchase the shares in the destination account.
    This takes care of 'adjusting the basis and acquisition date(s) for tax purposes.
    Alos, the tax features will recognize the distribution as a taxable event. The tax features do not recognize transferring shares as taxable.
    QWin & QMac (Deluxe) Subscription
    Quicken user since 1991

  • Unknown
    Unknown Member
    edited December 2017
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    JM said:

    The simplest procedure is to sell the shares in the IRA account, transfer the cash, and then repurchase the shares in the destination account.
    This takes care of 'adjusting the basis and acquisition date(s) for tax purposes.
    Alos, the tax features will recognize the distribution as a taxable event. The tax features do not recognize transferring shares as taxable.

    And you MUST do this in two transactions.

    You CAN NOT just use a SELLX transaction.

    You MUST SELL the shares, then Transfer Cash Out of Account.

    It's the Transfer Cash Out of Account transaction type that triggers the dollar amount as a taxable event in Quicken.
  • splasher
    splasher SuperUser ✭✭✭✭✭
    edited December 2017
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    JM said:

    The simplest procedure is to sell the shares in the IRA account, transfer the cash, and then repurchase the shares in the destination account.
    This takes care of 'adjusting the basis and acquisition date(s) for tax purposes.
    Alos, the tax features will recognize the distribution as a taxable event. The tax features do not recognize transferring shares as taxable.

    I just did this myself and the sell-transfer$-buy was the cleanest way to get it done and have Quicken recognize the tax consequences.

    -splasher using Q continuously since 1996
    - Subscription Quicken - Win11 and QW2013 - Win11
    -Questions? Check out the Quicken Windows FAQ list

  • Unknown
    Unknown Member
    edited December 2017
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    Thank you, everyone!
  • Unknown
    Unknown Member
    edited December 2017
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    Phil said:

    Thank you, everyone!

    Phil...just make sure you EDIT your IRA account, and then click on the Tax Schedule box at the bottom of that screen.

    You should have "Transfers Out: 1099-R:Total IRA gross distrib" selected from the dropdown.  
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