I have transferred my 401k holdings to a standard IRA. The transfer was directly to the IRA. After entering the data into Q07 all seems ok except that the total transfer is being considered as income in all the tax planning reports. I have also taken my required withdrawals. These are also added to my total income in the tax reports as they should be. Any ideas as to what's going on???
What transactions did you use to accomplish this "rollover"?
Quicken doesn't have a "rollover" transaction (but I think it could use one); it generally treats "transfers" out of retirement accounts as your account "tax attributes" tell it to. And frequently, transfers out of retirement accounts are retirement "income". "SoldX" and "XOut" (and certain others) seem to be fundamental "transfers" out of an investment account.
If you had never taken any "income" ("required withdrawals") out of the 401k account for tax year 2006, I would have suggested modifying your 401k account tax attributes to show no tax form line for transfers out of the account ... then doing the SoldX transaction.
I did a quick test in Q2006 (don't have Q2007).
If I transfer cash out of a retirement account with the "transfer out" tax attribute assigned to a 1099 "income" Tax Form Line, the transfer is treated as income (in the Tax Schedule report).
But if I use a miscellaneous expense (MiscExp) transaction to transfer the cash out, Quicken does not assign the transfer-out to income in the Tax Schedule report.
So the transaction type you use to remove the cash from the account seems to matter.
Two problems I don't have an answer for.
1.) MiscExp did not reduce the cash balance in the 401k account. (I can't explain this at all). 2.) While the "transfer" did take place (the cash wound up in the "rollover" IRA account); it was still considered a "ContribX" in the rollover IRA account. I have no idea what the ramifications of that are: I do not use TurboTax, for example.Perhaps Q2007 does better.
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