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How to enter an RMD transaction

 
 
trvlnmny
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      07-24-2012, 11:51 PM
I made an RMD withdrawal from my IRA.
This IRA is a mutual fund.
I track this IRA as an Investment account in Q 10.
I told the fund to deduct 10% of the withdrawal for federal taxes.
I also instructed them to transfer the 90% to my Money Market account
which is also held by them and tracked by me in Q10.
Assuming the total withdrawal amount was for $5,000 at a share price
of $2 for 2,500 shares.
This means they held $500 for federal taxes at $2 for 250 shares.
The transfer details to my MMA was $4,500 at $2 per share for 2,250
shares.
The entry for the MMA account is an input of $2,250 @ $1 per share.

How do I handle the withdrawal from the IRA and the transfer to the
MMA account?
And how do I handle the federal tax transaction?
Thanks for any and all help.
 
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Han
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      07-25-2012, 12:34 AM
trvlnmny <(E-Mail Removed)> wrote in news:97d3d9dd-d88c-4fe7-941c-
(E-Mail Removed):

> I made an RMD withdrawal from my IRA.
> This IRA is a mutual fund.
> I track this IRA as an Investment account in Q 10.
> I told the fund to deduct 10% of the withdrawal for federal taxes.
> I also instructed them to transfer the 90% to my Money Market account
> which is also held by them and tracked by me in Q10.
> Assuming the total withdrawal amount was for $5,000 at a share price
> of $2 for 2,500 shares.
> This means they held $500 for federal taxes at $2 for 250 shares.
> The transfer details to my MMA was $4,500 at $2 per share for 2,250
> shares.
> The entry for the MMA account is an input of $2,250 @ $1 per share.
>
> How do I handle the withdrawal from the IRA and the transfer to the
> MMA account?
> And how do I handle the federal tax transaction?
> Thanks for any and all help.


As the saying goes: Follow the money:

You SOLD 2500 shares of the IRA mut fuds for $5000
(the $/sh are something to let Q calculate, because if the numbers are
not as round as in your example, the rounding that Q performs will bite
you in the form of fractional shares you either have left over, or are
short. Never enter $/sh for any Q transaction!!!)
So now you have $5000 cash in your mut fud account.
These are transferred out as a split transaction:
$500 to the category Tax:Fed
$4500 to the MMA
The $4500 cash in the MMA account was then used to purchase 4500 shares
in the MMFund.

Some of these transactions can be done as a SellX I think, but that will
make it less clear as to what exactly happened.

If you download the transactions from your financial institution, you may
get a clearer picture of what THEY think is done.

--
Best regards
Han
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