Re: Catagorizing IRA Withdrawals by harrelsonesq
harrelsonesq
Sun Jan 22 23:50:41 CST 2006
This is an unfortunate limitation in Money. You can assign a category to the
transaction if you characterize it as a withdrawal. You can transfer money
from one account to another. You just can't do both (with the same
transaction).
I have a beneficiary IRA that was left to me by a relative who had begun
taking mandatory distributions. I am required to continue taking the same
distributions as taxable income until the account is depleted, which will be
well before I reach retirement age. Money doesn't deal with this situation
very well.
I have chosen to use "Transfer." When the IRA withdrawal is direct deposited
in my checking account, and then downloaded into Money, I enter the category
as "Transfer: Bank X IRA." This automatically reduces the IRA account, which
is at a bank that doesn't offer online services. I have to manually enter
the extra income into my tax program, but that's once a year, as opposed to
24 monthly transactions, so it works for me. YMMV.
Susan
"James Patrick" <jamespatrick@charter.net> wrote in message
news:8WOAf.426$%b1.318@fe04.lga...
> I'm new to Microsoft Money. When I withdraw money from my regular IRA
> account and deposit the check in my savings account, how do I categorize
> the money so it shows up as retirement income on tax reports?
>
> The Transfer tab does not allow me to assign a category. The Withdraw tab
> allows me to categorize the withdrawal as Retirement Income: IRA
> Distributions, but does not add the withdrawal to the IRA cash balance, so
> I can then transfer it to my savings account.
>
> Suggestions, please.
>