I have been requesting MS to allow a category for transfers from "Qualified
" accounts such as IRA'S and SEP'S for several years ;having been a tester
of the product for many years, each year "they" said next year; last year
someone from the Money program called me and said it would implement the
transfer category this year; since I did not get to do the test for ver2006
,I have been watching the newsgroup for a posting relative to the withdrawl
problem; so I see ,no change.
Having to do mandatory withdrawls for several years. I transfer to a cash
account,then do a transfer to a bank account and set the category as a
taxable event(at least that is what I recall<g> ).
A darn shame MS cannot implement this a Quicken does!

"harrelsonesq" <harrelsonesq2[at]yahoo.com> wrote in message
news:e3vmqaiwFHA.3236[at]TK2MSFTNGP14.phx.gbl...
- quote -

For some reason, I didn't see your original post. I've been fighting with
the program over this issue for several years now.

I inherited an IRA from an elderly relative who had begun taking
distributions. I am required to continue taking the same distributions as
taxable income until the account is depleted. I have never been able to make
this work in Money.

I have the IRA account set up in Money. The distribution is direct deposited
into my checking account every month. If I show it as a transfer, so it will
reduce the balance of the IRA account when it is deposited into my checking
account, it doesn't show up as taxable income. If I show it as an IRA
distribution (taxable) it doesn't reduce the IRA balance.

I tried a transfer into an intermediate dummy account, but that didn't do
any good, just introduced another level of complexity. Bottom line is, as
Dick said, Money just doesn't have any provision for distributions. There
are plenty of situations, such as yours and mine, that happen to people in
their "acquisitive years" (love that phrase), but Money's developers don't
understand that, either.

What I ended up with was using the transfer method. I had enough problems
trying to import tax information, I guess because I have more oddish stuff
like this in my financial picture, that it doesn't really work for me
anyway. I just enter the $2,400/yr taxable distribution in the tax software
manually. They used to choke on it, but the last couple of tax seasons went
smoothly. YMMV.

Susan


"L Cramer" <lzcramer[at]yahoo.com> wrote in message
news:jFwZe.14229$L45.10736[at]fe07.lga...
- quote -

Thanks for confirming what I feared. Odd, M2004 has its own 401K "manager"
yet says absolutely nothing about disbursements. Do they expect their
customers not to live that long! I simply wanted to close out a small,
straggler account that would eventually generate more paperwork than it was
worth.

Here's what I did: Simply removed the shares from the account and
then deposited the dollar amount in a checking account, classified as
"Other Income: 401K Disbursement." Then I moved the proceeds back to an
investment account. I don't use M's budget features. In Reports it turned
a small capital gain into a small loss (?), but the number is small and
largely irrelevant. More important, my taxable income Report and taxes
paid amount is correct, which mattered most.

Thanks for chronicling M's decline in function and rise in frustration. This
year I "upgraded" to 2004 (not '05 or ''06) because of comments on this
board. If/when you evaluate MoneyDance, please be so kind as to post your
thoughts here. Thanks.

lz


"Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
message news:ebCG1WYwFHA.2312[at]TK2MSFTNGP14.phx.gbl...
- quote -

WAG: Transfer to a taxable account that's outside budget? Then transfer back
into a taxable account included in the budget? The tracking will be ugly.


Dick Watson wrote:
- quote -

That's a hard one. Money is designed almost exclusively for those in the
acquisitive years and does next to nothing to deal with cases like this.

Have you checked the tax reports? If the 401k is setup correctly as a
Retirement Account, maybe it recognizes the Transfer as a Distribution of
significance. I haven't tested this and don't consider it better than a
50/50 shot.

Maybe somebody else will have an idea. Everything I can think of is
basically making the money go away and then show up in the other account as
some Income category. I don't like those solutions.

"L Cramer" <lzcramer[at]yahoo.com> wrote in message
news:%fkZe.8638$eH2.3821[at]fe02.lga...
- quote -

I'm stumped. In M2004 how do I handle a taxable 401k distribution? I've
closed a small account and of course the money is now taxable. I can't seem
to transfer it to a bank account and classify it as taxable income. The
transfer feature doesn't permit classifying the transfer. If I withdraw the
money, it shows up as an unassigned expense. Thanks for any help.