jacobs Beta

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  • jon857

    "Adding another use case here: a user who transfers some money from a traditional IRA (or 401k) account to a Roth IRA account. Roth conversions are taxable income, even though the transfer of funds is between two retirement accounts. So just like the example above, a user currently has to create a "trick" transaction to create taxable income in the Quicken tax report:

    In a checking account (or any non-retirement account), create a transaction with an Amount of zero. In the splits tab and add two split lines: (1) Use category "Personal Income:Taxable IRA Withdrawal", enter the amount of the Roth conversion as a positive number; and (2) Use category Adjustment" with the same amount as a negative number.

    What's needed for Roth conversions to work without hacks like this is for Quicken to continue to ignore investment income in retirement accounts but create an exception for the category "Personal Income:Taxable IRA Withdrawal"; any use of that category should show up in the Tax Schedule report. "

    Thanks for the wonderful hack for improving QM functionality! A confusion, when you state to use the category Personal Income:Taxable IRA Withdrawal do you mean edit the categories available and create a sub category under Personal Income? I am running QM6.12.7 so until I upgrade my iMac and load the current iOS so I can install the latest version I have resorted to creating this as a new sub category. Otherwise I do not find the subcategory Taxable IRA Withdraw in my software.

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    For my QCD I grabbed the Fidelity transaction download which is a Payment/Deposit type and in category selected transfer to my checking account, then created a second entry with a cash withdraw creating a new subcategory Personal Income:Qualified Charitable Distribution which is now found in my Tax report. Your thoughts regarding this strategy?

    Jonathan (jon857)

    January 26