Roth IRA distributions not showing up as income

JSPerko
JSPerko Quicken Mac Subscription Member ✭✭
edited August 16 in Reports (Mac)

I do a Payment/Deposit transaction from my Roth IRA account to my checking account. The transaction in the checking account shows "Transfer:[Vanguard Roth IRA]" in the Category, with the amount of the transfer on the same line. If, however, you do, for example, a Cash Flow report, these transactions do not show up as income, which makes the bottom-line total an incorrectly large negative number. Has anyone dealt with this? Thanks.

Best Answer

  • jacobs
    jacobs Quicken Mac Subscription SuperUser, Mac Beta Beta
    Answer ✓

    The real issue is that when you transfer money from an IRA account to a non-retirement account, as you've done, Quicken Mac will never show that as income because transfers are neither income nor expenses.

    The way I've been using to deal with IRA withdrawals (whether RMDs or Roth conversions) is to create a zero dollar transaction with one split using Category=Personal Income:Taxable IRA Withdrawal for the amount of the withdrawal, and a second split using the Category=Adjustment for the negative of the same amount. This creates income out of thin air, and works correctly for various reports including tax reports.

    There is an Idea thread (feature request) for the developers to add a wya to create a taxable riteent withdrawal transaction without resorting to such a hack:

    https://community.quicken.com/discussion/7335879/quicken-mac-needs-a-wizard-to-handle-two-types-of-ira-withdrawals-rrif-accts-29-legacy-votes

    You can click the View Post link above and add your vote for the feature request.

    Quicken Mac Subscription • Quicken user since 1993

Answers

  • recursor1
    recursor1 Quicken Windows Subscription Member ✭✭✭

    You're most likely misunderstanding the cash flow comparison. The default settings of that report don't even include transfers between accounts because the information isn't particularly useful. Inflow and Outflow are not the same as income and expenses (well they are, but they are looking at the same transactions from a different lens). In that report, you'll see negative numbers in three different places:

    1. In the columns for the comparing period and current period that are income categories, but which subsequently got subtracted (The most common case is with the paycheck feature, because dental/medical/vision are income categories, but they are always subtracting amounts from your paycheck).
    2. In the outflows category, when your totals for each comparing period are actually positive amounts you are receiving back (for example, if you use a category for keeping track of coupon discounts you receive in a transaction).
    3. In the amount difference column, when you've had more money "spent" on a category in the current period than you did in the comparing period.

    I think your issue is with how your interpreting what you are seeing, and not an issue with Quicken. Take another look, and if you still think there is a problem, let us know.

  • JSPerko
    JSPerko Quicken Mac Subscription Member ✭✭

    Makes sense. Thanks.

  • jacobs
    jacobs Quicken Mac Subscription SuperUser, Mac Beta Beta

    Are you using Quicken Windows or Quicken Mac? Your profile says Quicken Windows, but you've posted this in a Quicken Mac category.

    Quicken Mac Subscription • Quicken user since 1993
  • JSPerko
    JSPerko Quicken Mac Subscription Member ✭✭

    I change the profile to Mac (didn't know that profile field existed). I thing recursor1's response makes sense. I think I need a different report to get what I need. Thanks.

  • jacobs
    jacobs Quicken Mac Subscription SuperUser, Mac Beta Beta
    Answer ✓

    The real issue is that when you transfer money from an IRA account to a non-retirement account, as you've done, Quicken Mac will never show that as income because transfers are neither income nor expenses.

    The way I've been using to deal with IRA withdrawals (whether RMDs or Roth conversions) is to create a zero dollar transaction with one split using Category=Personal Income:Taxable IRA Withdrawal for the amount of the withdrawal, and a second split using the Category=Adjustment for the negative of the same amount. This creates income out of thin air, and works correctly for various reports including tax reports.

    There is an Idea thread (feature request) for the developers to add a wya to create a taxable riteent withdrawal transaction without resorting to such a hack:

    https://community.quicken.com/discussion/7335879/quicken-mac-needs-a-wizard-to-handle-two-types-of-ira-withdrawals-rrif-accts-29-legacy-votes

    You can click the View Post link above and add your vote for the feature request.

    Quicken Mac Subscription • Quicken user since 1993
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