Boatnmaniac ✭✭✭✭✭

Hello @Boatnmaniac, just posting to test the comment notifications. ✌️

Annuities cannot be downloaded into Quicken. So, I set up an offline IRA Account for mine (and another file for my brother's).

• Annuity distributions are usually treated by the IRS as deferred income, much like Pension and IRA distributions. An IRA account works really well regarding this.
• Make sure the Tax Schedule for this account is set to 1099-R:Total IRA taxable distribution or 1099-R:Total pension taxable distribution. There is no Tax Schedule for annuity distributions in Quicken so these are the closest to it. This will ensure distributions get captured in the Tax Reports and Tax Planner.
• I set up a custom security for the Annuity. (Mine is a USAA annuity so I named it "USAA Deferred Annuity".)
• Then I funded the account by entering a buy transaction for this annuity security with a share price of $1.00 (just like with money market funds). For example: If the annuity is a $50,000 annuity, enter a buy of 50,000 shares at $1.00 ea.
• Once a month I update the shares balance with a Reinvest - Income Reinvested transaction. For example, if the value of my annuity increased by $200 I would report that in the transaction as 200 shares reinvested @ $1.00 each. (I use dividend reinvestment but you could use interest reinvestment if you wish.)
• When I take a distribution I treat it like I would any distribution from an IRA account: First, enter a Sell transaction for the pre-tax amount of the distribution with the proceeds deposited to the IRA account. Then, enter a deposit transaction to the deposit account with a split category. In the 1st line of the split, enter a transfer from the annuity for the full pre-tax distribution dollar amount as a positive number. In the 2nd line of the split (if appropriate) for Fed tax withheld as a negative number. If needed for state and local withheld tax, add additional negative dollar amount line items. The total of all the splits needs to equal the net deposit to the deposit account.

This has worked really well for me. Hopefully you find it will work well for you, too.

Hi,

I read this comment and it is very helpful. I see how you increase the value when it goes up, but how to you decrease it? I have been using IntInc when on the rise, and MiscExp when losing. Not working out good because MiscExp is for the Account, not the Security.

Any advice?

Thank you,

Alex

Hello,

You responded to my concerns with Quicken security (Thread was closed in sept). I just got around to looking. To remind you, you posted (in short)

To summarize the lowest risk options for managing your accounts in Quicken:

• Do not use Express Web Connect or Express Web Connect+.
• Do use Direct Connect or Web Connect or manually manage everything in your data file.
• Make sure Mobile and Web Sync in Preferences is turn OFF.

As I inferred but perhaps didn't state is that Quicken now doesn't allow you (In most cases…i deal with ~20 Financial Firms…ONLY exceptions where i can go DC is Wells Fargo and T.Rowe Price…..(along with other examples, like quikenID, etc) is the direction it appears, to force the user to use their cloud services (a great place to get hacked by man in the middle). Here's a screen that comes up with any institution i want to 'change' back to the old connection methods (DC/WC).

No other option, accept or don't connect.