Income from Tax deferred Retirement account (Canadian RIFF)

I am using MONEY06.

I have set up a Retirment account using IRA (actually for a canadian
Retirement income fund-RIFF). And within the account I have purchased a CD
with annual interest payment. The IRA Retirement account correctly
categorizes the interst income as "TAX-DEFERRED INCOME".

Question:

When I start to withdraw from the retirement account, any amount withdrawn
will be deemed to be taxable pension income. What do I need to do in
registering such withdrawals so that I can see them as an income in an income
report.

I tried redeeming a portion of the CD, and transferring the sum to a bank
account. Such a transaction does not show up in any income report.

And there does not seem to be any way to attach a "Category" to a CD
redemption action.

thanks

Cal
Fri Feb 15 15:48:56 CST 2008

In microsoft.public.money, Frustrated Money User wrote:

>I am using MONEY06.
>
>I have set up a Retirment account using IRA (actually for a canadian
>Retirement income fund-RIFF). And within the account I have purchased a CD
>with annual interest payment. The IRA Retirement account correctly
>categorizes the interst income as "TAX-DEFERRED INCOME".
>
>Question:
>
>When I start to withdraw from the retirement account, any amount withdrawn
>will be deemed to be taxable pension income. What do I need to do in
>registering such withdrawals so that I can see them as an income in an income
>report.
>
>I tried redeeming a portion of the CD, and transferring the sum to a bank
>account. Such a transaction does not show up in any income report.
>
>And there does not seem to be any way to attach a "Category" to a CD
>redemption action.

If you track the cash transactions (which I would do), enter any
interest and redeem the CD in the retirement account. That should
increase the money in your cash account. Then enter an expense with
the desired category in the cash transactions for the retirement
account, and enter a corresponding deposit with category into your
checking account.

The logical thing would be to be able to do a transfer transaction
of the cash, and to have a tax report recognize that as taxable
income. Since that does not happen, I would use the two-transaction
method.

A transfer can have a Payee. You could use a distinguishing payee
and customize a report to find those transfers. But that is not a
good solution IMO.

FrustratedMoneyUser
Fri Feb 15 16:23:17 CST 2008

Cal, thanks for the suggestion. It works. However, I have another question:

I do track the cash transaction in the IRA account. By doing as you suggested:
1: enter an expense in the IRA cash account and a corresponding deposit
where the funds are transferred (say a checking account); I can categorize
the deposit as a retirement income which is all good; but,
2: on the IRA cash account side, how should the payment be categorized? It
seems that either I leave it blank or call it say a "Fund transfer" and not
display "fund transfer" in income/expense report. Do you have further
suggestions?

Another question:
In the investment accounts, there are many different types of retirement
accounts (IRA, KEOGH, 401K etc.) Does each of these have different functions
within or are they all the same?

Thanks very much for your help

"Cal Learner-- MVP" wrote:

> In microsoft.public.money, Frustrated Money User wrote:
>
> >I am using MONEY06.
> >
> >I have set up a Retirment account using IRA (actually for a canadian
> >Retirement income fund-RIFF). And within the account I have purchased a CD
> >with annual interest payment. The IRA Retirement account correctly
> >categorizes the interst income as "TAX-DEFERRED INCOME".
> >
> >Question:
> >
> >When I start to withdraw from the retirement account, any amount withdrawn
> >will be deemed to be taxable pension income. What do I need to do in
> >registering such withdrawals so that I can see them as an income in an income
> >report.
> >
> >I tried redeeming a portion of the CD, and transferring the sum to a bank
> >account. Such a transaction does not show up in any income report.
> >
> >And there does not seem to be any way to attach a "Category" to a CD
> >redemption action.
>
> If you track the cash transactions (which I would do), enter any
> interest and redeem the CD in the retirement account. That should
> increase the money in your cash account. Then enter an expense with
> the desired category in the cash transactions for the retirement
> account, and enter a corresponding deposit with category into your
> checking account.
>
> The logical thing would be to be able to do a transfer transaction
> of the cash, and to have a tax report recognize that as taxable
> income. Since that does not happen, I would use the two-transaction
> method.
>
> A transfer can have a Payee. You could use a distinguishing payee
> and customize a report to find those transfers. But that is not a
> good solution IMO.
>
>
>

Cal
Fri Feb 15 16:31:13 CST 2008

In microsoft.public.money, Frustrated Money User wrote:

>Cal, thanks for the suggestion. It works. However, I have another question:
>
>I do track the cash transaction in the IRA account. By doing as you suggested:
>1: enter an expense in the IRA cash account and a corresponding deposit
>where the funds are transferred (say a checking account); I can categorize
>the deposit as a retirement income which is all good; but,
>2: on the IRA cash account side, how should the payment be categorized? It
>seems that either I leave it blank or call it say a "Fund transfer" and not
>display "fund transfer" in income/expense report. Do you have further
>suggestions?

You might as well make a new category for the purpose. That will
make it easy to make a report that includes that.

>
>Another question:
>In the investment accounts, there are many different types of retirement
>accounts (IRA, KEOGH, 401K etc.) Does each of these have different functions
>within or are they all the same?

I think the 401K might have some provision of an expectation that
some percent of contributions are pre-tax from the employer. There
may be other things that somebody can add.

Ron
Sat Feb 23 16:40:05 CST 2008

I have similar problem so will jump into this conversation. I have set up my
IRA Withdrawal with the suggested Paycheck kludge -- under the Wages
category I use Transfer From: Account Cash. Then I mess around with the Tax
Estimator -- each time trying to remember what went before. My question is:
Why am I being teased with that default Category -- Retirement Income: IRA
Distributions -- which seems to imply a better solution? How do others use
this category?



"Frustrated Money User" <FrustratedMoneyUser@discussions.microsoft.com>
wrote in message news:26231F08-563B-4434-893F-B5B9E16D0665@microsoft.com...
>I am using MONEY06.
>
> I have set up a Retirment account using IRA (actually for a canadian
> Retirement income fund-RIFF). And within the account I have purchased a
> CD
> with annual interest payment. The IRA Retirement account correctly
> categorizes the interst income as "TAX-DEFERRED INCOME".
>
> Question:
>
> When I start to withdraw from the retirement account, any amount withdrawn
> will be deemed to be taxable pension income. What do I need to do in
> registering such withdrawals so that I can see them as an income in an
> income
> report.
>
> I tried redeeming a portion of the CD, and transferring the sum to a bank
> account. Such a transaction does not show up in any income report.
>
> And there does not seem to be any way to attach a "Category" to a CD
> redemption action.
>
> thanks
>