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Posted by Andrew on October 29, 2006, 8:47 am
Please log in for more thread options John Pollard wrote:
>> Just noticed something funny in Q - is this working the way it
>> should?
>>
>> I have a Money Market account and a stock account (2 separate
>> Q accounts, both labeled as 'IRA' accounts) as part of my IRA
>> at Vanguard. Reason for two different accounts is that they
>> have different account numbers at Vanguard.
>>
>> I sold some shares of one of the stocks in the IRA stock
>> account and the resultant cash went into the stock account's
>> cash balance on day one, according to the transaction in Q.
>>
>> Subsequently on day 2, it was swept automatically into the IRA
>> Money Market account (As it should). So far, so good.
>>
>> But the transaction that ended up being automatically entered
>> into the Money Market account on day 2 is labeled 'Contribx'
>> (the full transaction type in the detail screen is 'Cash
>> Transferred into Account' and the target source of the cash
>> is the IRA Stock Account as it should). Q is labeling '2006'
>> as the tax year.
>>
>> This somehow seems wrong to me- I am NOT making any new cash
>> additions into my IRA as a result of this. Isn't this what Q
>> is indicating I have done? Do I need to manually edit the
>> transaction to simply move cash (not a Contribution?) from the
>> Stock account to the Money Market account?
>>
>> (I saw earlier that there was a concept of 'linked' money
>> market accounts, but when I tried to see if that was doable
>> here a few weeks back, I never got the correct results
>> indicating I could do this.)
>
> Because it's late on a Saturday night, I'll try a quick answer;
> I don't assume it is definitive, but that it hopefully contains
> some useful info.
>
> In my experience, Quicken is not capable of making the sorts of
> distinctions that you need. I think it is a design flaw in
> Quicken; I have mentioned it (or at least something very
> similar) several times before.
>
> There are certain "transfers" that Quicken has never (in my
> experience) been able to distinguish between "contributions",
> and "exchanges" which have zero impact on taxes or returns. For
> example, transfers into tax-deferred accounts are generally
> "contributions" as far as Quicken is concerned ... regardless of
> the source of the transfer. It has been this way for as long as
> I can remember.
>
> I am also not sure what the bottom line impact of this "flaw" is
> (I don't use Turbo Tax, for example).
>
> I don't have the energy at the moment to delve into my research,
> or other's posts, on the subject, but I think you will find this
> issue has been discussed before - either here and/or in the
> Intuit forums ... though perhaps not in the depth to which you
> would prefer. Probably others here can shed much more light
> than I.
Thanks John - I will look into the archives as you suggest. I do try to
remember topics that have been discussed in case I get 'bit' by them in the
future; I'll check into this.
I *do* use Turbotax, but I have always maintained that one should not
blindly use Q's data transfer...at the least, double check. In my
particular case, I simply print the tax reports from Q via schedules,
validate the #s against 1099s and the like, and *manually* enter the data
into TT....I just don't trust Q to do this correctly. It is true that I
don't have overly complicated taxes, especially when it comes to Schedule
"D" as I am not that active a trader (and of course, inside my IRA, any
sales don't generated reportable Capital Gains anyway). Maybe if I spent
more time trying to get transactions into Q correctly (but I do spend
enough time just trying to get the amounts accurate!) this would work
better, but it seems to me that the 'real' data you get from 1099s is what
you should be using in reality.
Hope everyone remembered to change their clocks back today, except for our
friends in certain states that don't do that!
---------------
Regards -
- Andrew
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