RMD Distribution & Quicken Asking Tax Year for Contribution

Leon Pink · January 2023

Downloaded the postings of my RMD distribution (Fidelity-IRA) to my checking account (Bank of America.) Why does a Quicken window pop up, on the checking side saying, "You have made a contribution into your IRA account before April 15 deadline. Please identify the tax year of the contribution."?

Funds were withdrawn from my Fidelity IRA and received at BofA. On the Fidelity side, they withheld the Fed'l & State taxes, showed the entire amount of the RMD and download posted as a WithdrwX in Quicken. On the checking side, it posted as a TXFR and shows the taxes withheld and the net deposit amount.

Is the tax year question an error within Quicken or caused by the way it was downloaded into Quicken? What adjustments, if any, do I need to make?

Boatnmaniac · January 2023

I've noticed that myself for several years. Since the transaction was posted into your checking account with a transfer from your IRA it appears to me that Quicken is seeing it as a negative contribution to the IRA. If so, it is logical that Quicken would ask which year the "contribution" is for. But I also think that the code could/should be modified to disregard negative contributions.

I don't think there is anything you can do to eliminate this issue. It will go away on it's own after tax day (4/15) passes. I have not seen it do anything to adversely affect the accuracy of the Tax Planner or tax reports so it seems like does no harm. I just make sure to click that the transaction it is for the current year.

There is a Product Idea posted to improve handing of RMDs: Improve handling of IRA distributions, including QCDs and Roth conversions. If this Product Idea gets implemented I'm guessing this issue will go away. The more who vote for an idea the more likely it will be added to Quicken's development plan. If you agree with it, please cast your vote for it as shown in this example picture:

Image: https://us.v-cdn.net/6031128/uploads/editor/4j/zgb839sk0wjb.png

NotACPA · January 2023

It sounds like you did things properly. It's just Q's message that's in error since you made a W/D and not a contribution.

What shows if you run the TAX, Tax Schedule report in Q?

Boatnmaniac · January 2023

I've noticed that myself for several years. Since the transaction was posted into your checking account with a transfer from your IRA it appears to me that Quicken is seeing it as a negative contribution to the IRA. If so, it is logical that Quicken would ask which year the "contribution" is for. But I also think that the code could/should be modified to disregard negative contributions.

I don't think there is anything you can do to eliminate this issue. It will go away on it's own after tax day (4/15) passes. I have not seen it do anything to adversely affect the accuracy of the Tax Planner or tax reports so it seems like does no harm. I just make sure to click that the transaction it is for the current year.

There is a Product Idea posted to improve handing of RMDs: Improve handling of IRA distributions, including QCDs and Roth conversions. If this Product Idea gets implemented I'm guessing this issue will go away. The more who vote for an idea the more likely it will be added to Quicken's development plan. If you agree with it, please cast your vote for it as shown in this example picture:

Leon Pink · January 2023

Thank you #notacpa and #boatnmanic for your responses. I checked the Tax Schedule Report, and it only showed the Taxes being paid and 1099-R for the total distribution.

RMD Distribution & Quicken Asking Tax Year for Contribution

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