IRA Distribution


P

PSJ

Using q06p

Took a required IRA distribution; the brokerage broke it into 3 withdrawals:
1. the am't that went to me (it was transferred to a taxable acc't but there
is no way to show this in downloaded form just the neg in the ira & a
matching cash deposit in the other acc't)
2. fed withholding
3. state withholding

All were categorized as IRA withdrawals. In my tt world that doesn't work.
Would appreciate any thoughts on how to show this & which tax line item to
use for the net distribution. I find 401k categories but not IRA. Appreciate
any ideas.
 
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J

JM

PSJ said:
Using q06p

Took a required IRA distribution; the brokerage broke it into 3 withdrawals:
1. the am't that went to me (it was transferred to a taxable acc't but there
is no way to show this in downloaded form just the neg in the ira & a
matching cash deposit in the other acc't)
2. fed withholding
3. state withholding

All were categorized as IRA withdrawals. In my tt world that doesn't work.
Would appreciate any thoughts on how to show this & which tax line item to
use for the net distribution. I find 401k categories but not IRA. Appreciate
any ideas.


In your IRA account you need to set 'Transfers Out: 1099-R:Total IRA
taxable distrb.'
IRA Account Summary View > Edit Account Details > Tax Schedule Info

The setting for 'Transfers Out' effectively categorizes the total
wuthdrawal [1+2+3 in your case] as taxable income.

The with-holding categories are:
1099-R:IRA federal tax withheld and
1099-R:IRA state tax withheld.

To make this work properly in QW I would transfer the total withdrawal
[1+2+3] to the taxable account. In the receiving [taxable] account,
open the transaction in edit mode; add splits for the two withholding
items [negative amounts] which subtract from the 'deposit' leaving you
with the net.
You do not categorize the net - it is simply the result of the total
withdrawal minus the withho;ding entries.

You must include the withholding amounts in the 'Transfered Out' value
in order for QW to properly report taxable income. If you enter the
withholding as a Misc Expense from the IRA account, QW will not will
not include these in the total withdrawal figures.

Finaaly, memorize and schedule this transaction with the splits.

I have outlined how I handle mine and my QW data agrees with the
year-end 1099-R provided by the FI.
 
J

JM

I ment to say that:

Tthe tax line assignments for the withholding categories are:
1099-R.... etc.
 
J

JM

To check yourself, run QW's Tax Schedule Report to see how the info
reports out.
 
P

PSJ

JM said:
Using q06p

Took a required IRA distribution; the brokerage broke it into 3
withdrawals:
1. the am't that went to me (it was transferred to a taxable acc't but
there
is no way to show this in downloaded form just the neg in the ira & a
matching cash deposit in the other acc't)
2. fed withholding
3. state withholding

All were categorized as IRA withdrawals. In my tt world that doesn't
work.
Would appreciate any thoughts on how to show this & which tax line item
to
use for the net distribution. I find 401k categories but not IRA.
Appreciate
any ideas.


In your IRA account you need to set 'Transfers Out: 1099-R:Total IRA
taxable distrb.'
IRA Account Summary View > Edit Account Details > Tax Schedule Info

The setting for 'Transfers Out' effectively categorizes the total
wuthdrawal [1+2+3 in your case] as taxable income.

The with-holding categories are:
1099-R:IRA federal tax withheld and
1099-R:IRA state tax withheld.

To make this work properly in QW I would transfer the total withdrawal
[1+2+3] to the taxable account. In the receiving [taxable] account,
open the transaction in edit mode; add splits for the two withholding
items [negative amounts] which subtract from the 'deposit' leaving you
with the net.
You do not categorize the net - it is simply the result of the total
withdrawal minus the withho;ding entries.

You must include the withholding amounts in the 'Transfered Out' value
in order for QW to properly report taxable income. If you enter the
withholding as a Misc Expense from the IRA account, QW will not will
not include these in the total withdrawal figures.

Finaaly, memorize and schedule this transaction with the splits.

I have outlined how I handle mine and my QW data agrees with the
year-end 1099-R provided by the FI.
Great, thanks -- I had thought that might be the best way -- delete the 3
downloads & create 1 am't to transfer, hated to start fooling around & make
a mess.
 
P

PSJ

JM said:
To check yourself, run QW's Tax Schedule Report to see how the info
reports out.
Just tried that & there are no categories in cash transferred out nor cash
transferred in transactions, the acc't detail tax schedule information is
"Total IRA gross distribution" but $ transferred out do not show up in the
tax schedule. I can easily add two cash out for the fed & state tax in the
taxable acc't but that does not account for the withdrawal. How did you find
a way to categorize the transfer?
 
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P

PSJ

PSJ said:
Just tried that & there are no categories in cash transferred out nor cash
transferred in transactions, the acc't detail tax schedule information is
"Total IRA gross distribution" but $ transferred out do not show up in the
tax schedule. I can easily add two cash out for the fed & state tax in the
taxable acc't but that does not account for the withdrawal. How did you
find a way to categorize the transfer?
As an addendum, I did do the 2 tax withdrawals from the taxable acc't & they
showed up in the tax schedule report; it is just the distribution that is
absent. I am certain this is because the taxable acc't is checked to show in
the tax schedule while none of the deferred acc'ts are checked -- income in
the latter is not a taxable event, just the distribution.
 
J

JM

The transaction is a transfer of funds from the IRA account to the
taxable account. The category field contains the transfer designation
[IRA account] ot [taxable account] depending on which end of the
transaction you are looing at.

Are you by chance looking at transactions downloaded from your FI? -
these will not show the transfer designation. You need to enter the
transfer transaction in the register before downloading.

In the Tax Schedule Report, you should find the info for these
transactions under the heading '1099-R' - toward the end of the report.

The first sub-heading is 'Total taxable IRA distib' - the total taxable
withdrawal.
Followed by sub-headings for each withholding; 'IRA federal tax
withheld' and 'IRA state tax withheld'
 
J

JM

What you see is correct - the IRA acct is not checked in the Tax Sched
Rept.

It is setting the 'Transfers Out' for the IRA acct that triggers
reporting a taxable event.

Looking at the IRA account transaction category field - do you see the
designation for a transfer?, i.e., [Taxable Acct] where 'Taxable Acct'
is the name of your taxable account?
 
P

PSJ

JM said:
The transaction is a transfer of funds from the IRA account to the
taxable account. The category field contains the transfer designation
[IRA account] ot [taxable account] depending on which end of the
transaction you are looing at.

Are you by chance looking at transactions downloaded from your FI? -
these will not show the transfer designation. You need to enter the
transfer transaction in the register before downloading.

In the Tax Schedule Report, you should find the info for these
transactions under the heading '1099-R' - toward the end of the report.

The first sub-heading is 'Total taxable IRA distib' - the total taxable
withdrawal.
Followed by sub-headings for each withholding; 'IRA federal tax
withheld' and 'IRA state tax withheld'
The acc't held $xx cash, I did a "cash transfer" from the IRA to the taxable
acc't of the full am't (deleted the 3 separate neg. values that the fi
downloaded). I could find no other suitable option to remove the cash from
the acc't. I then went to the taxable acc't & did 2 withdrawals, 1
categorized to 1099R fed tax withholding & 1 state. The 2 tax withholding
show at the bottom of the tax schedule report, the total distribution does
not.
 
J

JM

Do you have the 'Transfers Out' set to '1099-R:Total IRA taxable
distrib' for the IRA account?
 
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J

JM

You are correct in that the IRA account is not checked in the Tax Sched
Rpt - It is setting the 'Transfers Out' for the IRA account that
triggers reporting the distribution as a taxable event.

Looking at the transaction in the IRA acct - do you see a designation
for a transfer in the category field, e.g., [<taxable acct name>]
 
P

PSJ

JM said:
What you see is correct - the IRA acct is not checked in the Tax Sched
Rept.

It is setting the 'Transfers Out' for the IRA acct that triggers
reporting a taxable event.

Looking at the IRA account transaction category field - do you see the
designation for a transfer?, i.e., [Taxable Acct] where 'Taxable Acct'
is the name of your taxable account?
There is no category field just acc't to transfer cash to another acc't just
the acc't name of the taxable acc't. As I said before, I transferred the
gross am't then in the taxable acc't had 2 withdrawals; withdrawals have
categories.
 
J

JM

PSJ

We got our thread a bit tangled - so let's pick it up from here.

First, my appologies - the IRA account transfer transaction does not
have a 'Category' field - it does have the 'Account' box in which you
select the account to transfer-to which is your taxable account.

I think were ok to this point.

My last question was:
In the IRA account - Do you have the 'Transfers Out' set to
1099-R:Total IRA taxable distribution'?
 
P

PSJ

JM said:
PSJ

We got our thread a bit tangled - so let's pick it up from here.

First, my appologies - the IRA account transfer transaction does not
have a 'Category' field - it does have the 'Account' box in which you
select the account to transfer-to which is your taxable account.

I think were ok to this point.

My last question was:
In the IRA account - Do you have the 'Transfers Out' set to
1099-R:Total IRA taxable distribution'?
There is no transfer called 1099-R ... The only option that I see available
is "Cash transferred out of acc't" Using this I can only name the acc't to
which it was transferred, the amount, description & memo; none of these has
anything to do with taxes -- except it is a withdrawal from an IRA. There
are numerous types of transactions but none that have anything to do w/this
issue. As the tax line item is correct for $ out of the acc't, I thought it
would show in the tax schedule report but there is no 1099-R income from the
IRA acc't. I can manually add it to the tax planner, but would like to see
it in the tax schedule report. Thanks for bearing w/me on this.
 
J

JM

We'll get it!

Open your IRA account to 'Summary' view.
Scroll down to find/select the 'Edit Account Details' button - under
the 'Account Attributes'
In the 'Account Details' window - select the 'Tax Schedule Info'
button.
You are now looking at the 'Tax Schedule Information' window.
The first selection is a check box which will be checked to show that
this account is a 'Tax-Deferred of Tax-Exempt Account'
The next choice is 'Transfers In:' - the entry box should be left
blank.
The final choice is 'Transfers Out:' - open the drop-down menu and
scroll down the choices.
The choices are a long list of items resembling the tax line
assignments for categories.
Scroll down to find/select '1099-R:Total IRA taxable distrib'
Click 'OK' and your done.

You should now find that 'Transfers Out' from your IRA account are
reported in the Tax Schedule Report - under the header '1099-R'.,
sub-header 'Total IRA taxable distrib.'

As added background info - you will receive a year-end Form 1099-R from
your IRA custodian reporting the taxable withdrawals and withholding
activity for your account.

Let me know how it goes.
 
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J

John Pollard

PSJ said:
There is no transfer called 1099-R ... The only option that I
see
available is "Cash transferred out of acc't" Using this I can
only
name the acc't to which it was transferred, the amount,
description &
memo; none of these has anything to do with taxes -- except it
is a
withdrawal from an IRA. There are numerous types of
transactions but
none that have anything to do w/this issue. As the tax line
item is
correct for $ out of the acc't, I thought it would show in the
tax
schedule report but there is no 1099-R income from the IRA
acc't. I
can manually add it to the tax planner, but would like to see
it in
the tax schedule report. Thanks for bearing w/me on this.
Open the IRA account to the Summary tab. On Account Attributes
title bar, click Options. Select "Set Tax Attributes". Assign
the correct tax schedule line to "Transfers Out".
 
P

PSJ

John Pollard said:
Open the IRA account to the Summary tab. On Account Attributes title bar,
click Options. Select "Set Tax Attributes". Assign the correct tax
schedule line to "Transfers Out".
Tax attributes in this tax deferred acc't are set for "1099-R Total IRA
gross distrib" It does not show in the tax schedule report.
 
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P

PSJ

John Pollard said:
Open the IRA account to the Summary tab. On Account Attributes title bar,
click Options. Select "Set Tax Attributes". Assign the correct tax
schedule line to "Transfers Out".
BTW, though gross distribution is accurate according to fi, I did try
changing it to the 1099-R Total taxable distribution in case that was the
problem, still no joy, no entry in tax schedule report.
 

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