The IRA distribution should show up in the tax schedule as income.

To accomplish what you want in your example, you will need to do two transactions:

1. Debit your Checking Account by $10,000 and Credit your IRA Distribution Income by $10,000.

2. Credit your Broker IRA account by $10,000 and Debit a Contra IRA Income account by $10,000.

Here is an example of these two transactions:

Checking Account:
Debit your Checking Account for $10,000. The offsetting account (credit) will be a your IRA Distribution Income account. Make sure your IRA Distribution Income account has the IRA Taxable Distribution tax code assigned to it.

IRA Account:
Credit your IRA Account for $10,000. The offsetting account (debit) will be a Contra Income account. Because you are debiting this income account it will be a negative amount. The net effect of your IRA Distribution Income and your Contra Income is zero and your total net worth did not change. You are simply taking money out of your IRA and putting it into your Checking Account and realizing this as taxable income.

You can go into Multiple Distributions screen by clicking the “***MD” button on your toolbar during Transaction Entry. This will bring up the Multiple Distribution screen for your current entry. I did not use Payee/Payor examples because these are really defined by you. You should use ones that are the most meaningful for you.

Yes, the Contra Income Account should have a negative balance. That is the nature of a contra account. It is needed to accomplish all of the transactions you need. It offsets the Income you received from your IRA to your Checking account. You are just really transferring amounts between two assets, and thus would not want to change your net income.