Why is DivX not working for IRA to Banking accounts?

Everett25 · January 6

I have Quicken Classic on Windows 10. I have always used DivX to manually record a dividend and transfer from my IRA to my Banking account. After latest update, DivX has stopped working from IRA accounts. I am having to record a Dividend income and then a seperate entry to transfer the cash to the Banking account. What is going on?

q_lurker · January 6

You say it "stopped working". In what way?

How are you entering the transaction (in-line in the register or via the Enter Transactions button)?

I have a vague recollection of such an issue (DivX and related transactions from retirement accounts) being raised as a problem, but have not confirmed that recollection.

q_lurker · January 6

Any parallels to this case from 2-1/2 years ago - particularly the CMA-type cash account and the MS Money conversion?

DivX Disappeared

samuel491

May 24, 2022

I am using Quicken Premier for Windows version R40.21 build 27.1.40.21 with an active membership.

I have 81 DivX transactions in my Traditional IRA retirement account going back to 1-13-12 with the most recent being 1-14-22.

All of a sudden I cannot create a new DivX transaction in my retirement account. I tried entering it manually, using a memorized investment transaction and via “Enter Transactions”. None created the DivX transaction that I’ve been creating for many years. Now I can only create a Div transaction. And when it creates a Div transaction the dollar amount of the cash dividend does not display in the line as it used to with DivX. I have to edit the transaction to see it. I have “Show hidden transactions” checked. Nothing new showed up when I checked it.

There is no cash balance displaying in my Traditional IRA account. There is no “Cash Amount” column and there is no “Cash Balance” column and no option to display such columns. When I click on “Update Cash Balance” I get the message “You cannot reconcile or update the balance of a CMA-linked investment account, because its cash balance is always zero. To reconcile the cash balance, go to the linked bank account.” This is the message I would expect because I set this retirement account with a Cash Management Account and the account I set up as the CMA account appears as grayed out in the “Transfer Account” option when selecting the “Inc – Income (Div, Int, etc.)” transaction type. But the new dividend dollars are not showing up in the Cash Management Account anymore because I can’t create a DivX transaction – only Div. In the Investments section the cash balance for this account is the sum of my linked CMA account plus the new Div transaction. So the dollars are in there somewhere. They just don’t display in the CMA account or the retirement account or anywhere else unless I edit the transaction. In my retirement account one of the options listed is “Checking Account”. When I click on that it does bring me to my CMA account. Similarly in my CMA account one the options listed is “Investment Account”. When I click on that it does bring me to my Traditional IRA account. So they are still linked. I checked to see if there was an option to transfer cash out of the account but I don’t see one, probably since this CMA linked account is designed to always have a zero cash balance.

Retirement account set up displays as Account Type: Traditional IRA, Tax deferred = Yes, Single mutual fund account = No. Linked CMA account set up displays as Tax deferred = Yes.

Any assistance would be appreciated.
Thank you.

Boatnmaniac · January 6

I am seeing that the Transfer account drop-down for this transaction type is non-functional so the cash proceeds can only be deposited to the investment account, not transferred to another account. It is the same regardless of which type of investment account. (And, no, the accounts I tested this in do not have cash held in a separate linked checking account.)

I also noticed that in the Action field in the transaction line in the account register there is no DivX option available.

Is this the issue you are experiencing?

Everett25 · January 6

To Boatnmanic

This is exactly the problem, that I am experiencing. In the "Enter Transaction" field the :Transfer Account" drop down doesn't work and if I just manually enter "DivX" in the register view, it doesn't accept it. I have used "DivX" to record a IRA dividend and transfer to banking account until this past week when it quit working. Guessing some kind of update glitch.

Jim_Harman · January 6

Interesting. What versions of Quicken are all of you running? In R60.15 I tried entering a DivX from an IRA to a taxable account and it worked OK. I then accepted the update to R60.20 and tried the same and it also worked. This was in a relatively new test file.

But in a copy of my working file, which is about 20 years old, it allows a DivX from one taxable account to another but not from an IRA to a taxable account.

Note that I do not normally use DivX or XOut for IRA distributions because historically transfers from a tax deferred account to a taxable account were not recorded correctly for tax purposes unless the transfer was entered in the taxable account. I don't know if or when this was fixed.

Everett25 · January 6

I am running Ver R60.20 Build 27.1.60.20

Boatnmaniac · January 6

I am running R60.15 and it is affecting me. What I reported above was from playing around in a test file that is of unknown age. And no matter the type of investment/retirement account the DivX option was not available.

I then did the following:

Opened my 15 yrs old main data file.
Opened my mother-in-law's 7 yrs old main data file.
Created a new test file.

In all 3 of these files, the IRA and Roth IRA accounts did not have the DivX option but the taxable brokerage accounts did.

So, I don't know what is going on. Nor why it is that those of us in this thread are getting different results from each other. Certainly odd. I think I'll look at this some more tomorrow and see if I get the same results.

Everett25 · January 6

To Jim_Harman

How do you record a "Dividend or RMD distribution" and cash transfer from a Retirement (IRA) account to a Bank account without doing a DivX or cash transfer?

Jim_Harman · January 6

Essentially you enter a split Deposit in the taxable receiving account. Here is my stock answer to this question:

It is a bit tricky to record IRA distributions in Quicken so that the tax implications are captured correctly. The gross distribution and any tax withholding must be recorded in the receiving account. It can be a banking or an investing account, but it must be a taxable account, not another IRA for example. If there is already an Xout transaction in the IRA account that transfers money to the taxable account, note the amount and delete it before entering the Deposit. Do not try to edit the receiving end of the transfer.

With that as a background, here is a "cheat sheet" for entering these distributions:

In the IRA, click on the gear at the top right and select Edit account details. Click on Tax Schedule and set Transfers out to "1099R: Total IRA taxable distrib."

In the taxable receiving account:

1) Enter a Deposit transaction for the net amount of the RMD as a positive number.

2) Split the Category:

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.

If you receive the distributions regularly, you can set up this transaction as an Income Reminder.

Delete or do not accept any downloaded transactions in the IRA for

The net distribution
The Fed taxes withheld
The State taxes withheld

With this setup, the taxable income will be shown in the Tax Planner and the “1099-R Total IRA Taxable distrib.” and the tax withholding in the withholding sections of the Tax Schedule report.

Everett25 · January 6

To Boatnmanic

From 2015 until this month (Jan 2025) I have been able to do a "DivX" from the register or do a Dividend Inc and transfer from the Enter Transaction screen. Even the memorized transactions option that I have used in the past, will not record a Dividend and Transfer from an IRA account to a bank account. The work around on one of the Quicken Forums, was to change the IRA Retirement account to Brokerage Account. I can do still do DivX from a Brokerage account to another account, so I might go that route.

Everett25 · January 7

To Jim_Harman

Thanks for the quick response. With tax time coming, I thought , maybe I was doing it wrong.

In the taxable receiving account, I am entering it exactly as you have shown in steps 1 and 2. The only difference is that the transaction has always been generated from the IRA account through an "Income and Bill Reminder" and it has also worked as a "DivX" transfer. Been doing it for years, always worked, until now.

I tried your suggestion of entering it from the Receiving Taxable Account, and it works like before. Except that it shows as a "WithdrwX" in the IRA account and asks if it is a 2024 or 2025 contribution into the IRA account, when it is a withdrawal. I'm still playing with it, trying to figure what has changed.

Jim_Harman · January 7

I think that 2024/2025 question appears when the transaction is between 1/1 and 4/15 and determines which year's Tax report it is shown in. With IRAs, you are allowed to make a contribution until Tax Day the following year and have it count for the previous year. Also the first year you take an RMD you can take it until Tax Day of the following year and not face a penalty.

It is odd that it refers to a contribution when you are withdrawing. There should be no harm in selecting the correct tax year. You can check the Tax reports to see if it is recorded correctly.

q_lurker · January 7

@Everett25 The root of this discussion is that DivX ceased to work for you recently. This seems to have happened to others over the last several years and continues for others. There is no identified cause. I don’t know what prior release you were working with, but perhaps it was much older. That could be the why this recently started for you but hit others earlier.

At the point, the most viable approach seems to be doing the Div and then the separate withdrawal. I have not had the historical problems @Jim_Harman alluded to with simple XOut transactions nor have you indicated tax report issues with your prior DivX transactions. The idea of working from the receiving account is for tax report fixes, not as a simpler solution to your underlying issue.

You can certainly use the Report a Problem option from the Quicken Help functions to try to get this sorted out. You will not get a response from Quicken when doing but it will appear in their records.

Boatnmaniac · January 7

@Everett25 - Nothing new to update from me this morning. Everything for me is as it was reported here yesterday.

I agree with @q_lurker's suggestion that you report this issue via Help > Report a Problem. Briefly explain the issue. You can reference the URL for this thread which will be helpful to the Quicken team. You will be given the option to submit a bunch of log files and pictures if you want but you do not need to do that if you do not wish. Given that several of us are seeing varying results, hopefully they will be able to duplicate the issue so they can determine what might need to be done to resolve it.

I will do the same and I hope others in this thread will also submit their own reports. The more who report an issue the higher the visibility to the Quicken team and the higher the priority that will be assigned to it.

Fortunately, there is a working workaround solution. Just make sure that your downloaded Div transactions are deposited to your IRA account cash balance. Then the WithdrawX transaction will debit that cash balance appropriately and the account will not get out of balance.

Everett25 · January 7

Ok thanks guys for all the help. Going to use the work around of entering 2 transactions. 1: Enter dividend into IRA account 2: Enter deposit into taxable bank account to withdraw from IRA, using split transaction to separate withholding taxes

Thanks to all who helped

Why is DivX not working for IRA to Banking accounts?

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