Apologize if this is a repeat, posted about 1 week ago, can't find it now...but. RMD from my broker, they held 20% for tax purposes, sent me a check (80%). Easy way, treat the 80% as a deposit in checking account and forget about it. BUT, I want to enter it in Q to keep track of it. Create a FEDTAx account, split the deposit with 20% here, 80% checking account. Then when I pay taxes :-( transfer the tax holding to checking OR split the tax payment from checking and FEDTAx account. If I am lucky?? total tax due might be less than the 20% in the FEDTAx account, how would you reconcile the difference. I know multiple ways this may turn out, but I want to do it "right"!!
RMD documentation in Q
Dec 07, 2013
1 Replies
Why wouldn't you treat it just like a paycheck? The actual received amount goes into your checking account. The gross amount gets deducted as a transfer from your retirement account and the tax withheld goes into a tax category with the tax line item set to 1099R - IRA Federal Tax Withheld. There's no transfer when you do your taxes.
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