How to enter an RMD transaction

Discussion in 'Quicken' started by trvlnmny, Jul 25, 2012.

  1. trvlnmny

    trvlnmny Guest

    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.
     
    trvlnmny, Jul 25, 2012
    #1
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  2. trvlnmny

    Han Guest

    trvlnmny <> wrote in news:97d3d9dd-d88c-4fe7-941c-
    :

    > 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
    email address is invalid
     
    Han, Jul 25, 2012
    #2
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