[GNC] Recommended Method of Entry for IRA Distributions

[R Losey]

I'll try interspersing... using RL>>>



On Wed, Jan 11, 2023 at 9:52 PM Milton Stern <drmoshe5 at gmail.com> wrote:

> Hi,
>
> Please see below ********
>
> Moshe
>
> On Wed, Jan 11, 2023 at 7:06 PM R Losey <rlosey at gmail.com> wrote:
>
>> Hello.
>>
>> Assuming you take out $5,000 and they withhold 10% ($500), I would use a
>> split transaction... sell $5000 worth of the mutual fund, add $4500 to your
>> bank account, and $500 to federal income tax paid.
>>
>
>> I apologize for not using "debit" and "credit" terms, but I'm not sure
>> I'd get them right.
>>
>
> ******** Agreed. The component that I am having trouble with is the
> Pre-Tax IRA Distribution component. Because it is a Pre-Tax IRA, the
> distribution is taxable as income.
> ********The direct "sell $5000 worth of the mutual fund, add $4500 to your
> bank account" direct transaction will not show up in Income Reports.
>

RL>>> In my brokerage account, I actually "sell" the stock and put it in
the parent account, using the "IRA income category", and then I do a second
transfer from the brokerage account to my bank.  Example:

Brokerage account (the parent holding account)
      Sweep Fund
      Holding 1
      Holding 2




>
>
>>
>> You can track them however you wish, but the above is how I would do
>> them... well, except, I never have the mutual fund withhold taxes; I pay my
>> own taxes quarterly.
>>
>
> ****** New for 2023. IRS requires the brokerage to withhold taxes from IRA
> Distributions. Last year you could specify 0% withholding.
> ****** They don't make it so easy this year. It is sort of a double hit.
> Even if you get it back as a tax refund, you can't put it back (Rollover)
> into the IRA to earn tax free.
>
RL>>> That's TERRIBLE!  Grrrrr. I wonder what the minimum one can withhold
is?



>
>
>>
>>
>> On Wed, Jan 11, 2023 at 4:35 PM Milton Stern <drmoshe5 at gmail.com> wrote:
>>
>>> Hi,
>>>
>>> What would be the recommended method of Entry for an IRA Distribution?
>>>
>>> The Distribution is for a personal IRA (not Roth).
>>> The IRA is of Mutual Funds.
>>>
>>> The Mutual Fund is in Assets > Investments - Retirement > Brokerage >
>>> etc.
>>> > etc.
>>>
>>> Since this is taxable income, I need to track withholding (Federal) + Net
>>> Distribution to a Checking Account (Assets > Current Assets).
>>> No Commission fees are applicable, but it would be nice to know where/how
>>> they would be tracked.
>>>
>>> Thank you in advance,
>>>
>>> Moshe
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>>
>>
>> --
>> _________________________________
>> Richard Losey
>> rlosey at gmail.com
>> Micah 6:8
>>
>

-- 
_________________________________
Richard Losey
rlosey at gmail.com
Micah 6:8