Posting distributions from investment accounts to the investment account and the bank account
How should I record distributions from investment accounts in the investment account and the bank account?
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1 Posted by -Kevin N. on 23 Jun, 2016 10:16 PM
Hi Joe,
The way that I enter these txns is to enter a 'Div' txn whenever Dividend and / or Cap Gains distributions are paid out.
Doing so, increases the 'Cash Balance' by the value of the distribution(s).
Since my particular brokerage firm (Fidelity) requires a Money Market Fund to sweep any cash into, I then enter a 'Buy' txn of Money Market Fund shares equal to the amount of the distribution.
This in turn zeros-out the 'Cash Balance'. My 'Cash Balance' is almost always zero in my Investment accounts.
Using my method requires no entry into the 'Bank Register' of the Investment account in Moneydance.
HTH -Kevin N.
2 Posted by Joe Stroud on 23 Jun, 2016 11:02 PM
Kevin,
I failed to explain that I meant “retirement distributions” from a portfolio account of securities. These are not dividends or capital gains distributions.
Any suggestions for this?
Joe Stroud
3 Posted by -Kevin N. on 23 Jun, 2016 11:21 PM
Hi Joe,
My wife made a $2500 withdrawal from her IRA last year.
Step 1 Enter a 'Sell' txn of 2500 shares of the Money Market Fund.
Doing so increased the 'Cash Balance' to $2500.
Step 2 Enter an 'Xfr' txn with the proceeds going to her checking account. I selected her actual checking account from list of items in the 'Transfer' field drop-down list. I entered the $2500 dollar 'Amount' of the 'Xfr' as a negative value. -2500.00.
Doing so zeroed-out the 'Cash Balance' and automatically credited her checking account.
Again, no fussing with the 'Bank Account' register.
HTH -Kevin N.
4 Posted by Joe Stroud on 23 Jun, 2016 11:36 PM
Kevin,
If Taxes were withheld, how would you account for them while showing the gross amount as being a “Retirement Withdrawal”? The net is then credited to the bank account. How do I do this?
Joe
5 Posted by -Kevin N. on 23 Jun, 2016 11:54 PM
Hi Joe,
If the wife had a tax withholding (she didn't) I suppose I would enter it as a positive value in the 'Fee' column in the 'Xfr' txn; selecting the desired 'Tax withholding' category from the list of items in the 'Fee Category' drop-down list.
Doing so should credit the selected 'Fee Category' and reduce the amount of the transfer that appears in the receiving account by the amount of the 'Fee'.
HTH -Kevin N.
6 Posted by Joe Stroud on 24 Jun, 2016 12:12 AM
Thanks, Kevin, but that doesn’t accomplish what I need.
1) The gross amount is not posted to the “Retirement Draws” account, and
2) The taxes withheld put in the “Fees” field doesn’t allow the designation of the expense account, “Taxes - Federal.”
But thanks anyway.
Joe Stroud
7 Posted by dwg on 24 Jun, 2016 08:33 AM
Joe,
I'm not sure what you want to achieve but here is an alternative method that may give you some ideas.
put in the sale transaction to get the cash into the register of the brokerage account
Use a Xfr transaction to move the funds to a category created for the purpose, for example it could be call something like Retirement drawdown
FWIW it should be possible to combine the the about tw actions using a SellXfr transaction if desired.
You enter an additional split for the Tax paid and naturally the net amount is then deposited into your bank account.
Thus the entry in your bank account is done the same way as salary/wages would be but with appropriate categories.
8 Posted by Joe Stroud on 24 Jun, 2016 11:37 AM
dog,
Thanks. That is what I need to do.
Joe
Sent from my iPad
System closed this discussion on 02 Oct, 2016 02:38 AM.