401K withdrawal transfer to checking

Quicken already does this. Look at your Tax Summary report. And if you assign _401kwithdrawal to the correct tax line, you will also find the withdrawal in the Tax Schedule report.

A transfer already contains a category; an account in square brackets *is* a category. You just can not apply a non-transfer category to the same transaction. Transfers *can* show up as income ... where is it you are expecting to see them show up as income? How about in Income/Expense report? If you just "include all" transfers, you can see that FROM account categories are treated as income. You will have to work out for yourself what transfers should appear in which of your reports.

The key here is to do the transfers just as you are doing. You get the withdrawals to report as taxable income by setting the tax attributes of the retirement account.

Goto the summary view of the retirement account. In the account attributes section, click on options and select 'Set Tax Attributes' Set 'Transfers Out:' to '1099-R:Total IRA taxable distribution'.

You can check results by running QW's Tax Schedule Report. Withdrawals will report under the 1099-R header.

Do you have taxes with-held on these withdrawals?

.......snip.......

Let me ask a question that perhaps takes this discussion to another level. I have *after-tax* contributions in my 401k (along with the before-tax contributions and company matches.) I left that company some years before starting to use Quicken, so I've simply set up the account to reflect the component funds and record dividend reinvestments, etc., as they occur. But I've not yet made a withdrawal. The tax category I have assigned to transfers out is "1099R gross withdrawal." Will Quicken properly be able to deal with the fact that a percentage of that first withdrawal (or maybe all of it - I gotta bone up on the IRS requirements) will be after tax funds? Is there a way I can re-constitute the account setup to recognize the fact that a portion of the assets are after-tax? (I know the total after-tax percentage from my online account statement, but not how it is apportioned among each fund.) I use Q2005P, and I don't see a treatment of this particular situation in the help file.

Thanks, Ron

The after-tax portion of the account is the exact amount that you contributed. This is the cumulative total that will be withdrawn tax-free. All pre-tax contributions and all earnings (on pre-tax and aft-tax contributions) are co-mingled and taxable as ordinary income on withdrawal.

I do not know how the withdrawals of the aft-tax funds are handled - a ratio, first out, your choice, or ???

There is no provision for allocating between aft-tax and pre-tax in the QW account. I have used a class 'AT' to track the aft-tax contributions; i.e., aft-tax contributions to the account were entered as '[]/AT'. This was the easiest way I found to keep track of these contributions.

Thanks, JM, for your suggestions.

I do have the 'Transfers Out' of the retirement accounts set to '1099-R: Total Pension taxable distributions' (rather than IRA, since the TIAA-CREF accounts are not technically IRAs).

And indeed on QW's Tax Schedule Report, the withdrawals do show up under the 1099-R header. So this is working OK for me.

I did find out that my problem was that in the Income/Expense Report I did not have these retirement accounts checked to be included, nor did I have transfers included (on the Advanced tab). However correcting this cures one problem but introduces another which I will describe separately.

Both federal and state taxes are withheld on my pension withdrawals. I put the correct amount of tax in the correct category after I get the gross withdrawal amount transferred over to my checking account.

Bill R

JM wrote:

Yes, I was looking at the Income/Expense Report (and also at the Cash Flow Report) and expecting to see the pension distributions. My problem was that in the customize options for these reports my two pension accounts were NOT checked to be included and transfers between accounts were excluded (under the Advanced tab). So naturally these withdrawals did not display in these reports.

However, the pension withdrawals still are NOT automatically included in the Tax Planner under Other Income for the current year. I have to manually insert the correct amount of withdrawals to get the Tax Planner to come out right. When I click on the "View tax items used here" for the pension income, it does correctly show "1099-R: Total pension taxable distributions" and "_401K withdrawal". But somehow the amount doesn't get automatically included in the Tax Planner. Therefore something is still not being done correctly either by me or QW. The pension withdrawals do show up under the 1099-R header in the Tax Summary Report.

In the Income/Expense Report, after including my two pension accounts and including transfers in my customization options, my pension distributions do show up as transfer income (although not explicitly as a _401K withdrawal). However, my *income* also shows the *payment* I made from my checking account to my credit card account, even though it is really negative income! (But I suppose it is positive income to the credit card account).

Thanks for your help, John, Bill R

-------------------------------------- John Pollard wrote:

Did a little more digging on the distribution issue. Appears the distribution will be a combination of aft-tax and pre-tax. Would guess this goes on until the aft-tax portion is fully distributed. This thread gives some insight:

I retired an did a roll-over of my 401k in 2001. I was issued a check (no tax liability) for the aft-tax portion - exactly in the amount of my aft-tax contributions. The remainder of the account rolled into another tax-deferred account.

The tax laws were changed in 2003 and apparently now permit including the aft-tax portion in the rollover if so desired. You file some form to report the relative values on rollover. Perusing several related threads, it appears that it is your responsibility to keep track of the cumulative aft-tax distributions when you file your yearly tax forms.

snip

Thank you! I was aware, in principle, not in detail, of the reporting requirements. I'll surely be doing more research before moving funds from the 401k, either as direct distributions or as rollover. My concern here was mainly how to make Q2005P reflect the accumulations & transactions properly. Apparently, it's not (yet?) that sophisticated. Many thanks, Ron