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How many IRAs are recognized in Q 2006?

I was doing a Tax Summary Report for 2005 and noticed something strange. I have 3 IRAs. In the Dividends section of the report, there is a "_DivInc" section and a "_DivIncTaxFree" section. I have checked and all 3 accounts are noted as IRA and I so no other way to designate a difference in entering the dividends as to whether they are taxable or not. It would seem if they are in an IRA account, Quicken would recognize them as being tax free.

Only one of the three accounts represents the dividends as tax free and puts them under the TaxFree section. All sections are added in the total as far as Income but I would think the TaxFree dividends would no appear or be taken out later.

I am sure the way to fix the report would be to customize and remove the IRAs from the available accounts, which I will do, but Quicken should know not to include them in this report and why does it only show 1 of 3 IRAs with TaxFree dividends?

Thanks, Clark

Reply to
Clark
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Seems like we've had this discussion a dozen times or so.

Quicken does not need to separately categorize dividends in tax-deferred accounts; all the income in those accounts is "tax deferred". My Tax Summary report defaults to excluding tax-deferred accounts; I think you should exlude them from your report.

The "_DivIncTaxFree" category is only necessary/useful for securities that are held in taxable accounts but whose income is tax free: Municipal Bonds, for instance. You cause Quicken to use "TaxFree" categories when you designate a specific security as "tax free". (It is usually suggested that you do not hold tax-free securities in tax-deferred accounts.)

Also, "tax free" means you never pay taxes on the income. You will pay taxes on withdrawals from many tax-deferred accounts; withdrawals that will contain income earned during the course of you holding that account. _DivInc in a regular IRA account, for example, will eventually be taxed, it's not "tax free".

While I do not use TurboTax, my understanding is that Quicken has no trouble excluding all the income from tax-deferred accounts from TT ... without having to resort to using a separate category.

Reply to
John Pollard

Sorry John, I tried to remove the message, but I ended up having to shuffle how tax payments were made in one account so I would not have to use it to show those payments. It appears the default setting for the tax reports does not include retirement accounts so the dividends wouldn't show up in the tax reports. I had customized the report so that the account did show up to get the tax payments.

It doesn't matter now, but it is still a little strange that 1 IRA would show as TaxFree and the other 2 do not--Oh well.

And one more note as far as information only, while I was doing this, something shifted in the data base which ended up showing me as having less in my account than I really did. The register would not show a total on the same line as the entries, but one line lower. Some kind of glitch which went away when I opened another file, then reopened the original one. That scenario never happened in Q2004.

Thanks, Clark

Reply to
Clark

I know of no way to get transactions categorized as "_......TaxFree" except by designating the specific security as "Tax Free" (in the Security List).

Reply to
John Pollard

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