How to enter an RMD transaction

Question

I made an RMD withdrawal from my IRA.This IRA is a mutual fund.I track this IRA as an Investment account in Q 10.I told the fund to deduct 10% of the withdrawal for federal taxes.I also instructed them to transfer the 90% to my Money Market accountwhich is also held by them and tracked by me in Q10.Assuming the total withdrawal amount was for $5,000 at a share priceof $2 for 2,500 shares.This means they held $500 for federal taxes at $2 for 250 shares.The transfer details to my MMA was $4,500 at $2 per share for 2,250shares.The entry for the MMA account is an input of $2,250 @ $1 per share.How do I handle the withdrawal from the IRA and the transfer to theMMA account?And how do I handle the federal tax transaction?Thanks for any and all help.

Han · Accepted Answer

trvlnmny wrote in news:97d3d9dd-d88c-4fe7-941c- snipped-for-privacy@g5g2000yqg.googlegroups.com:

As the saying goes: Follow the money:

You SOLD 2500 shares of the IRA mut fuds for $5000 (the $/sh are something to let Q calculate, because if the numbers are not as round as in your example, the rounding that Q performs will bite you in the form of fractional shares you either have left over, or are short. Never enter $/sh for any Q transaction!!!) So now you have $5000 cash in your mut fud account. These are transferred out as a split transaction: $500 to the category Tax:Fed $4500 to the MMA The $4500 cash in the MMA account was then used to purchase 4500 shares in the MMFund.

Some of these transactions can be done as a SellX I think, but that will make it less clear as to what exactly happened.

If you download the transactions from your financial institution, you may get a clearer picture of what THEY think is done.

How to enter an RMD transaction

Join the Discussion

Didn't find your answer?