How do I move my Annuity accounts that currently show up under Property to under the Retirement group?

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I need to move my annuity accounts from the property category into retirement group.                  
I found out the help instructions to use the Tools menu doesn't exist on Q2017 Mac version.   I need to group these account properly.  The annuity accounts are manual accounts, not connected to a bank.  The instructions were to call these property.  If I call them cash, they also pop into the wrong category.   Please assist me with this....thanks,
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shirley

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  • very frustrated. The online help is poor

Posted 3 months ago

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RickO, SuperUser

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Sounds like you set this up initially as an account of type "Asset" . Unfortunately, QM2017 will not let you change the account type Asset into one of the retirement types. To have your annuity grouped in the Retirement section, you will need to set up a new account as one of the retirement types, which are 401(k), 403(b), IRA, KEOGH, SEP or SIMPLE. 

So go to menu Accounts > New > Investments  and choose one of the retirement type accounts listed above to create the new account. Then go to your old Asset account, select all the transactions there, and drag them to the new account. Quicken should let you move the transactions from the old account to the new one in this manner so you don't have to reenter them.
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JM, SuperUser

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Shirley

First step is to make a good backup of your data file - just in case you need to retreat.

One can not convert an asset account to any type of brokerage account.
I would create a new account - suggest you use the IRA Account type (I use IRA for my annuity with no problems). The important point here is to make it a tax-deferred type of brokerage account.
In setting up the new account, the first dialog asks for the FI - ignore this and select the Options button.
Under Options, select Manual.
You will get an account named IRA listed under Retirement in the side bar.
You can rename the IRA Account by right-clicking on the account in the side bar - give it an appropriate name; e.g., My XYZ Annuity.
You can the move the transactions from the existing asset account to the new annuity account - select transactions in the asset account register and drag them to the annuity account in the side bar.
Double check the results to verify that all info has been satisfactorily moved.
When done moving the transactions, you can delete the old asset account.

The new account will display the value as a cash balance. If this satisfactory, you are done.
If the annuity is invested in some type of security, you will have to do some editing to enter Buys, Sells, etc. for the securities.

Post back if you have additional questions.
 
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shirley

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Thanks JM,   I've tried this but I can't seem to figure out how to add the starting balance.  It wants to categorize as a buy, and everything I try provides a negative number.   I'm sure it is a pilot error, as I just started with QM17.   I'd really like to get this fixed.      How do I add the starting balance, then I'll update every quarter.   I don't expect to draw from it for ~5 years.
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RickO, SuperUser

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If the annuity is held as a number of shares of a security that you create for the annuity, then you want to use an Add Shares transaction, rather than a Buy, to make the starting balance.

If you make the annuity a security, and you are not actually buying more of it, then as the value increases, all you need to do is add price updates in the Securities window to reflect the increased value.
(Edited)
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shirley

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Perfect!   That was time consuming to get all the individual accounts added, but it worked!   Thanks for all your help......    
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John Walker

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The problem I have with my Annuity as an IRA (401, 457, etc.) account, from a tax perspective, is that Quicken treats Annuity withdrawals (as apposed to annuitized payments) as if they were Capital Gains or part Return of Capital and part Earnings, with the latter taxed as Capital Gains.  Tax laws for Annuities are very different in that "withdrawals" (again, not payments after annuitization) are considered to come totally from "earnings", which are taxed as "Ordinary Income" and NOT Capital Gains. This process continues until all earnings are withdrawn (and taxed), and then the remaining (initial investment) is withdrawn tax free.  Unfortunately, because of the way Quicken handles this account, it not only continues to show a decrease in the "Cost Basis" (when none is occurring), but I also have to make repeated  corrections when I import Quicken data into Turbo Tax.  I just haven't found a way to fix this, other than to handle this account completely manually.

As an aside, unless you really hate your heirs, never buy an Annuity that lives beyond you, e.g. one that has a "Death Benefit". Even then they are questionable, unless you are sure that your marginal tax rate in retirement is going to be lower than the Capital Gains tax rate (which is already pretty low). And if you really feel you need an additional "stream" of income during retirement, I would suggest buying quality dividend paying common stock (where you won't get hit with some pretty stiff management fees); for at least if you die holding stock, your heirs will get a "step-up" in cost basis to the stocks current value. Leave your heirs with an Annuity and there is no "step-up" in value and your heirs will get hit with one heck of a tax bill as the inherited annuity must be liquidated within 5 years . . . let me tell you, I know:):):)!

Semper Fidelis