Taxable IRA distribution


T

Treadmill

I'm trying to get taxable information for this year, and ran across a
problme that you can't catgorize transfers, or treat them as income when
they go from a tax fee account to a taxable account.

I searched the newgroup and saw some discussion and cumbersome workarounds
discussed back in March 2003.

Is there a solution (perhaps in 2005) or does anyone have any better
workarounds.

Thanks
TM
 
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B

BobC

I have tried to get MS to allow a catagory for transfers from "qualified
accounts" such as Seps,Ira's for several years, I was told by one of the
Money folks that this may be done in the next version ,but don't hold your
breath :)
I set up a transfer from an IRA account to a cash account,then do a transfer
to a checking account an catagoritize this transfer as taxable income.
FYI, Quicken has been allowing this for years without "jumping through
hoops" as we have to do in Money.
 
B

BobC

Yep, will try to remember what I did last December <g>
There were three transactions from Ira and Sep accounts last December; the
transactions were decreases in the accounts rather than transfers ; the
"decreases were to a cash account thence to a money market account ,the
category was "Retirement Income: Ira Distributions.
I will admit this is not a proper way to account for taxable income from
"qualifiwed accounts" such as ira's and seps,however ,it was the only way I
could get the distributions to flow to the Retirement Income Category /Ira
Distributions so that "TaxCut" could pick it up .
Each Money beta I have tested I have filed a "bug" report on the way Money
neglects the distributions from Ira's and Sep's ,the answer was "maybe next
year"; finally one of the Money program persons called me this year and
agreed that a tranfer should be categorized as taxable income and flow to
the Retirement Income/Ira distributions.
Hopefully the above will be helpful.
 
D

Dick Watson

Well, the problem I'm still struggling with it that, in general, "Transfer"
and "categorize as taxable income" (or IRA distribution or whatever) are
contradictions in terms. A Transfer can't be categorized. What I think you
are describing is two separate transactions: one that reduces the shares and
the other that "invents" that income from thin air so it can be categorized.
This is clearly one way to do this, but it seems kind tacky. I don't know of
a better one.

Money very badly needs to add support for post-acquisitive users. Scheduling
investment sells, accounting for 401k and IRA distributions and their tax
implications and so on. It's been obvious for several years that this is a
requirement. Instead we get an ever-enhanced advertising delivery engine. Go
figure.
 
B

BobC

"Agreed on all counts" <g>

Dick Watson said:
Well, the problem I'm still struggling with it that, in general,
"Transfer" and "categorize as taxable income" (or IRA distribution or
whatever) are contradictions in terms. A Transfer can't be categorized.
What I think you are describing is two separate transactions: one that
reduces the shares and the other that "invents" that income from thin air
so it can be categorized. This is clearly one way to do this, but it seems
kind tacky. I don't know of a better one.

Money very badly needs to add support for post-acquisitive users.
Scheduling investment sells, accounting for 401k and IRA distributions and
their tax implications and so on. It's been obvious for several years that
this is a requirement. Instead we get an ever-enhanced advertising
delivery engine. Go figure.
 
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M

Michael Gordon, MVP

Another way to do it --not elegant, to be sure -- is to avoid a transfer,
just do an expense in the IRA account (and categorize it as some kind of
miscellaneous transaction) and a deposit in the taxable account (and
categorize it as some kind of taxable transaction).
 

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