Categorizing IRA Contribution/Transfer

Dec 11, 2005 3 Replies
S

Quicken 2005 Deluxe:



I performed an electronic transfer from my Wachovia bank to my Fidelity ROTH IRA.



In the Wachovia account, Quicken named the Payee "Fid Bkg Svc Llc Moneyline" (and also picked the wrong transfer account. In the Fidelity ROTH account, Quicken named the transaction something else, and didn't match the two.



In the end, the transactions look like this (after a little manual entry): Wachovia: Fid Bkg Svc Llc Moneyline -$250 [ROTH IRA]



FIDELITY: Fid Bkg Svc Llc Moneyline +$250 [Checking]



Question: Shouldn't one of these be categorized in Quicken as an IRA CONTRIBUTION for tax purposes? (I use TurboTax, and am thinking that when TTax downloads from Fidelity, everything will be OK. But I also want a reminder in case TTax does not show this.)



Thanks in advance, Steve


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J

You have the transaction entered correctly.

You need to set the tax attributes for the IRA account for QW to handle this correctly from a tax standpoint. Open the summary view of the IRA account. In the Account Attributes section, select Options, select 'Set tax attributes.' For 'Transfers In,' scroll down the list to find 'Form 1040: IRA contrbution, self [or spouse]'.

Run QW's Tax Schedule Report and you will see the contribution reported under the 'Form 1040' header.

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C

"Shouldn't one of these be categorized in Quicken as an IRA CONTRIBUTION for tax purposes?"

Actually, no. You contributed to a Roth. They aren't deductible for tax purposes and Quicken has no association for them, only traditional IRAs. If you try to use the 1040 IRA contribution it will try to treat it as a tranditional IRA, which is incorrect. The download form Fidelity by TurboTax won't have it either as the contribution isn't reportable on a 1099. You'll just have to remember it.

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