RMD and Tax Withholding
I have a traditional IRA that I am taking Required Minimum Distributions from, but instead of receiving the money I am transferring it to a taxable investment account. The investment company is withholding federal tax from the RMD. In YNAB I have tracking accounts for the IRA and another for the taxable account. I manually transfer the RMD from the IRA account to the taxable account. I have not been tracking the federal withholding amounts and think I should, so that the accounts accurately show what is happening. How should I handle the federal withholdings in YNAB?
Thanks. In order to keep track of the withholding I have decided to create a tacking asset account for the withholding and transfer the withheld tax amount into that account and at the end of the year adjust to zero to account for the payment to the IRS that the investment house as made. Do you see any problem with this approach?