I am running KMyMoney 5.2.0-8cbc53a. It is probable how I sent up my accounts, but pretty sure I could see this before. I have an IRA account that once a month a transfer is sent to my bank account. The category for that transaction is the sending and receiving accounts, vice an external transaction which you map to a category. The issue is when I run reports those transfers are not seen, even when I select Include Transfers. Is this an issue or normal operation? I was considering breaking the transfer ie IRA category IRA Distribution and Bank Account category IRA Income as a work around. Should I or is there a better way or fix. Thanks for any advice.
I am running Windows 11 and the reports are the Income and Expenses reports. I am trying to generate a report that shows all the different incomes over a financial year.
ok.
so if i understand properly (i don’t know what IRA account means), you have neither earned nor paid anything, your case is only an internal transfer between two accounts, right?
What happens if you deselect one of the accounts in the report configuration wizard here?
I think we are missing some information. When you say a transfer is made once a month, I assume that refers to the actual transfer from your IRA bank to your checking bank. For the KMM transaction that refers to this transfer, if it is really a transfer transaction, there can be no category assigned, as within KMM, categories just refer to income and expense accounts. Are you sure the transaction the report is missing really does have a Category assigned?
Hi, An IRA is a Individual Retirement Account. I have changed which accounts are selected and there was no difference.
Hi
Yes correct, the IRA (Individual Retirement Account) sends a transfer each month to my bank account. Which when you look at the transfer the category is the sending and receiving accounts and I understand that there would be no category assigned. The issue is when you withdrawal (transfer to bank) money from and IRA is seen as Income for tax purposes. I was trying to use TAGS as a means of being able to run reports and see the transactions, but I can’t get TAGS working. So I tried running and Income and Expense report with Include Transfers Tick but still don’t see the transfers. So, as I originally. So should I break the transfer and treat them like external transactions to allow them to be seen in a report ie sending account IRA Cat = IRA Distribution receiving Bank Account Cat = IRA Income to over come this issue?
I suspect I haven’t run into this myself yet, because I have not yet taken any taxable distributions from any of my IRA accounts, but I do see the problem. There are two accounts, one (IRA) which is tax exempt (or tax deferred if you prefer) for any actions purely within the account (such as investment gains) and a checking account, fully subject to taxes (this is all about taxation with the US.) A transfer of funds from an IRA to a regular checking account must be reported as taxable. Normally, this would be tracked using a Category, but if the transfer is recorded in KMM as a transfer transaction, a Category can not be applied. Tags could be one way to deal with this, and we can separately try to figure out why that does not work for you. Your proposal to make the IRA a withdrawal transaction and the checking acount transaction a deposit would allow assigning appropriate Categories (same or different for the two accounts) and would allow using Payees to track the other side of the transaction, but would lose the fact that the money was transferred directly between the accounts. Let’s see if anybody else has dealt with this and might have any suggestions.
KMM isn’t really setup to track this or track realized long-term and short-term capital gains.
As a workaround, this is what I do:
Let’s say you want to take $10,000 out of your IRA.
- Sell the shares of whatever you have invested. You now have $10,000 in your brokerage account.
- Create an investment just for accounting purposes, e.g. call it “Retirement Income” at $1 per share.
- Buy 10,000 shares of “Retirement Income”.
- Remove 10,000 shares of “Retirement Income”. You now have $0 in your brokerage account and have sold your investment.
- Add the money back with a transaction with an income category to the brokerage account.
- Then transfer the money out of the brokerage account.
It is kind of clumsy but it will make the money go from an investment equity to an income category and then all the reporting will work. I do something similar to track realized capital gains.
I’d be interested to hear if somebody else came up with something better to do this.
When you sell the shares, why can’t you just use a Category of “Long term capital gains” as the “fee?” I’ve been doing that for years, and it seems it would save you several steps and an extra account.
In case you haven’t seen it elsewhere, it is definitely known that KMyMoney has some standing deficiencies with how it deals with investments. At some point (not yet on the schedule) there is likely to be a major revision in this area, which will then allow improvements in investment reporting.
I have stopped the transfer and implemented the withdrawal from the IRA as a Cat = IRA Distribution and on the receiving Bank Account set up a Cat = IRA Income. Now when I run a report I see it as taxable income. Thank you all for your help…….
@ostroffjh That never occurred to me. I suppose I could just sell it using the cost basis and then add capital gains as fees. Then maybe just add the selling price in the notes. Certainly a lot simpler than what I have been doing. I assume I can do this without adding that to the price history of the equity?
Same for taxable IRA distributions. Sell it at $0 and then add using an income category.
Thank you!
While it might be nice to have the capital gains as a fee (see below) in this case we were talking about having the fee be the amount of the distribution. I’m not sure there is a good way to have both, but I have not thought about it in enough detail.
Personally, I have mostly given up KMM calculating capital gains correctly until the whole Investment implementation is changed, so I would only have to consider the whole sale total as my distribution. However, I do use capital gains (long or short term) as the fee category for sales. I suppose I’m just lucky that I have not yet started taking taxable distributions.
In the future (but not soon,) KMM will track “batches” of shares, and so allow you to specify which purchase got the shares you are now selling, so correct price on buy and sell will allow proper calculation of gains. I would prefer my prices to be accurate at the cost of more effort tracking gains for now.
One problem I see with using a $0 price is that the current value of your holdings is no longer accurate until you get an accurate price again, either by another buy/sell or just entering a price for the next day.
However, all use of KMM is subject to whatever works best for you.
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