How to Record IRA Distributions in Quicken for Windows

Overview

The way Quicken handles traditional IRA distributions can sometimes result in incorrect information in tax reports and the Tax Planner.

In a typical brokerage account, you’d usually enter a “SoldX” transaction. This transaction type is designed for standard brokerage accounts where moving cash out carries no special tax implications.

However, IRA distributions have potential tax consequences. Therefore, Quicken intentionally restricts IRA accounts from using SoldX to prevent transactions that could be recorded incorrectly for tax purposes.

Before You Begin

To ensure the proceeds are properly tracked for tax purposes, verify that your IRA account is using the correct tax line item for Form 1099.

1. Select the IRA account from the Accounts panel on the left.

2. Click the gear icon in the upper-right corner of the account register.

3. Click the blue Tax Schedule button at the bottom.

4. For Transfers from this account, select "1099-R:Total IRA taxable distrib."

5. Click OK.

How to Properly Record IRA Distributions

Distributions can be processed in two primary ways:

• Cash Distribution:

  The custodian liquidates assets and sends the funds via check, wire, or direct deposit.

• In-Kind Distribution:

  It means you move your actual shares of stock, mutual funds, or bonds out of the IRA and into a taxable brokerage account without selling them.

If You’re Recording a Cash Distribution

To properly record an IRA distribution when withdrawing cash in Quicken, you’ll need to enter two separate transactions.

First, enter a “Sell” transaction:

1. Select the IRA account from the Accounts panel on the left.

2. Click Enter Transactions at the top.

3. Select Sell - Shares Sold.

4. Enter the transaction details.

• Date

• Security name

• Account

• Number of shares

5. Click Enter Done to finish.

Then, enter a withdrawal transfer (WithdrwX) transaction:

1. Select the IRA account from the Accounts panel on the left.

2. Click Enter Transactions at the top.

3. Select Cash Transferred out of Account.

4. Enter the transaction date.

5. Use the “Transfer account” field to choose the target account.

6. Enter the amount to transfer.

7. Click Enter Done to finish.

If You’re Recording an In-Kind Distribution (Assets)

1. Select the IRA account from the Accounts panel on the left.

2. Click Enter Transactions.

3. Select Shares Transferred Between Accounts.

4. Enter the transaction date.

5. Choose whether you want to transfer only one security or all of them.

6. Select the security name.

7. Enter the number of shares.

8. (optional) Specify the investment lots.

9. Click Enter Done to finish.