Using Quicken 2008, what's the best way to report a cash withdrawal (either mailed to me by check or done by electronic funds transfer to my checking account) that includes a 10% withholding for federal income tax.
Thanks for any help.
Withdrawal from IRA Investment Account
May 13, 2008
2 Replies
Say you take a distribution of $1000 with $100 withheld for a net of $900
Open to a split transaction in your checking account register. The first split entry is a transfer of the total amount of the distribution from the IRA - $1000 The second split entry is a deduction of the withholding - $100 [negative] This leaves the correct net deposit to checking - $900
The transfers out tax attribute for the IRA account should be set to:
1099-R:Total IRA taxable dist. The category for the withholding is assigned tax line item: 1099-R:IRA federal tax withheldYou can check for proper results by running QW's Tax Schedule Report - look for the header "1099-R"
Thanks. That's essentially what I had done. I thought there might be a more automatic way of doing it, but I guess not.
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