I am converting some stocks from a traditional IRA to a ROTH. I cannot see a way that does this where the total amount of the stock moved is reported as income.
Right now, with Anthropic Claude’s help (blessed be his name!) I sell shares in my IRA with the income going to a dummy temp brokerage and not the IRA brokerage. Then In my Roth, I buy the shares with the money coming from that temp brokerage acct. So, no real money appears. HOWEVER, I don’t see how/where to add a category like Income Roth Conversion (Taxable) so that in my end-of-year income statement I see that conversion. Help please! as always, thank you, A
I keep separate Investment Accounts for regular and Roth IRA. For me, the transfer from the IRA brokerage to the Roth brokerage account represents the taxable transaction. Unless we find a way to apply a Category to the net proceeds of a stock sell, I have not thought of any way to track such things. I suppose we can also look for a way to apply a Category (or at least label as a tax transaction) anything that generates capital gains.
Thanks for the quick reply, Jack. I too have separate IRA accounts. I sell from one and buy into the other. Is that the same as you do, or do you “remove shares” from the traditional and “add shares” to the Roth? You say it “represents a taxable transaction” – but how does it represent that in KMyMoney? Claude suggests:
The standard approach: create a simple equity or tracking account (e.g., Equity:Tax Tracking or reuse Opening Balances) and record a split transaction like this on the date of each conversion:
-
Debit:
Equity:Tax Tracking— amount of the conversion -
Credit:
Income:Roth Conversion (Taxable)— same amountSeems overly complicated, but perhaps the only way? Thanks again, A