1. Click on the envelope you want to transfer money from. It should be highlighted.
2. Click on the Allocate Funds button (
).
3. Allocate funds as you normally would. Your source will be the highlighted envelope instead of the unallocated income.
Quick answer: Highlight the envelope you want to delete, then click the delete button (
).
Long answer: If you delete this way, you could mess up your budget if your envelope has a balance or you have transactions assigned to that envelope. If you have used your envelope at all, I recommend archiving the envelope instead. See this blog post on how to archive an envelope.