IRA RMD Withdrawals

I'm using Q2007.

I discovered last year that the $'s out of an IRA had to be transferred to a cash acc't to show up in the tax schedule report as 1099R income. I created a cash acc't, transferred gross rmd to it & then transferred the full am't to a taxable investment acc't. It was in this acc't that I paid fed & state taxes.

"PSJ" wrote.

I don't understand why that would be (or what version of Quicken you discovered that in). If the tax attributes for the account are set correctly, why wouldn't the withdrawals from an IRA account show up in the Tax Schedule report as 100R income. (I just did a quick test with Q2006, and it appeared to work for me.)

John, You tried this after I complained last year w/06p that transferring rmd from an IRA to a taxable investment acc't did not show up in the tax schedule report under 1099r (YES, the tax attributes are ser correctly & I was heartened that you confirmed my problem). The same is true this year w/07p; I could not transfer $'s directly from IRA to taxable acc't. & have it show up in the tax schedule report. Therefore, the intermediate transfer was required.

Recall the lengthly [and puzzling :

"PSJ" wrote

My apologies. (I don't remember the previous discussion ... just too many discussions), but I did not read your post as closely as I should have, and glossed over the "cash account" qualifier. Possibly my subconscious was thinking of a true cash account rather than a checking account, or possible I just missed it altogether. If I had recognized and understood the qualifier, I would done a different test than I did and gotten the same results you reported.

Sorry about that.

No problem, I should have been more selective in my terms. Last year I tried transferring to savings & other acc'ts -- all worked EXCEPT transferring to a taxable investment acc't. Apparently qkn believes you must spend the money not reinvest it.

BTW, to JM, all our IRA's are defined as tax deferred & it still doesn't work as it should.

What I intended to indicate - have kept my my IRA's as tax-deferred brokerage/investment accounts. Have not 'converted' to QW's IRA account type. Actually - had converted one account but reversed it after your discovery of the glitch. [Spent a few hours with the Cut/Paste operation to make the reversal :

That's interesting, when defined the qkn way it doesn't work. Guess I'll leave ours as they are as I at least know the work around. Can't imagine the am't of time it would take with the # of years invested in several acc'ts.

Hi guys, I am now more confused than before. Here is some additional info about my withdrawals. The 401k withdrawal and the two traditional IRA withdrawals were transferred to my bank money market savings account. The IRA transfers were direct and the 401k was via a check deposit. Remember that the only one that is being reported as income is the 401k. I sure do appreciate your help.

Your original post indicated that, for the two IRA's, the tax attribute for 'Transfers Out:' was set for a 1099. What is the complete description of the tax line assignment for Transfers Out these two IRA accounts?

The complete tax line assignment is: 1099-R Total IRA Gross Distrib.

Have run a few trials in my test file. With the tax attribute settings you descibe, you should see a header in QW's Tax Schedule Report labeled '1099-R'. Under this header, the distributions should be listed. Same for the 401k distribution. Tested this with both the gross distribution and the total taxable distribution tax line items; both reported with only the sub-headers changed under 1099-R.

For my current 401k distributions, I set the 'Transfers Out' to '1099-R:Total IRA taxable distrib.'; i.e., the total distribution is taxable. This has worked fine for me for the past few years.

Back to your initial post; you asked 'is a 1099-R considered income?' In my experience, the FI reports the distributions [taxable income] on a Form 1099-R and I enter this info on a corresponding Form 1099-R in TTax - a separate form for each FI.

Can't speak for importing into TTax as I have not done this for several years due to other complications - I do enter my data from QW tax summary reports [after cross-checking with the various forms from the FI's].