Taxable IRA Withdrawal On Which Side?

Diver4242
Diver4242 Member ✭✭✭
in Bills and Income

I wanted to see my monthly recurring IRA transfers from IRA to checking show up in the spending plan as spendable income. I know the current setup as a transfer won't work because it nets out to zero. I do see the ability to categorize it as a "Taxable IRA Withdrawal" but should that only be on the IRA withdrawal and not on the checking deposit? It will be unlinked going forward of course but I wasn't sure about the category on each end.

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  • SRC54
    SRC54 Superuser ✭✭✭✭✭
    edited January 31

    Edited. Here's how I'd do it.

    Let your IRA download it as it likes, but do not transfer it to the checking account. It can be just a transfer without specifying where it goes. It should be ignored in Spending Plan/Reports. You probably have the IRA in Accounts set up to be ignored anyhow.

    Then in the checking account/spending plan, just categorize it as Taxable IRA Withdrawal (This should be an income category). Just treat it as a paycheck and set up your recurring reminder the same.

    You should see it in Spending Plan now. Go back to your previous months and make sure you handle them the same way and they should show up as well.

    Let us know how this goes.

    Steve
    Quicken Simplifi (Safari & iOS) Since 2021
    Quicken Classic (MacOS) Since 2009
    MS Money (1991-2009) and Dollars & Sense (1987-1991)

  • DryHeat
    DryHeat Superuser ✭✭✭✭

    @Diver4242

    I know the current setup as a transfer won't work because it nets out to zero.

    That is the default behavior. However, you can mark the negative side of the transfer to be excluded from the Spending Plan and the positive side to be included.

    However… the transaction will not show up in the Income section, nor will it have an Income category. (Because it is a transfer, it doesn't have an actual category… just the name of the transfer account.) Instead, it will show up in the Spending Plan | Bills section as a positive amount (as opposed to real bills, which are negative.)

    The effect on your net spendable income is the same. Doing it @SRC54's way increases your income, doing it this way decreases your bills. SRC54's way has the advantage of showing up in the Income section with an Income category. Doing it this way has the advantage of tracking the funds' source to your IRA account.

    DryHeat
    -Quicken Classic (1990-2020), CountAbout (2021-2024), Simplifi (2025-…)

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