1. I'd suggest booking it "through" an Income account to make it convenient for reports that need to know what your income was (eg: while doing taxes, calculating income across the years, etc.). Assets:Bank -> Income:Tax-Deferred -> Assets:401k
2. Correct. And that's the account hierarchy I've used for a long time and find convenient. 3. Can't speak for Martin, but my guess is, money in a 401k is "partially owned by IRS" given every single dollar in it is subject to taxes upon withdrawal. Tracking it with a different currency makes it easy an intuitive to account for that. For example, if you know you'll be in the 30% tax bracket on retirement, you can set the price of one IRAUSD to be 0.70 USD, which makes your net worth calculation a bit better. If this is the motivation, I personally use an alternative mechanism for this purpose, shown in Fava investor <https://github.com/redstreet/fava_investor>. See ` asset_allocation_tax_adjustment` in https://github.com/redstreet/fava_investor/blob/master/example.beancount On Thursday, October 28, 2021 at 3:45:35 PM UTC-7 Bman Q wrote: > Hello everyone, > > As always i want to thank Martin and all community for beancount, > i am so glad that 3.5 years ago i've chosen beancount over other free > (gnucash, etc) or paid (quickbooks, etc) alternatives. Extendability and > flexibility of beancount are unmatched. > > And as always i have couple questions :) Please help :) > > 1. I have single member llc (sole proprietor), when i make solo 401k > contribution (salary deferral and profit sharing parts) effectively i > simply transferring funds from my one account (business) to my another > account (tax deferred), > so do i simply have following journal entry > > 2020-05-15 * "solo 401k contribution" > Assets:BusinessChecking - 24500 > USD > Assets:PreTax401k:CSchwab:Cash 24500 USD > > ? > > (i have 2 sets of books, and for LLC "tax" books i do following journal > entry > to make it easy for me do taxes: > > 2020-05-15 * "solo 401k contribution" > Equity:401kProfitSharing > 5000 USD > Equity:401kSalaryDeferral > 19500 USD > Assets:BusinessChecking - 24500 > USD > here i am trying to understand what i should track for myself to make > records useful) > > 2. Do i understand it right that > - i also should create separate 401k income account > Income:PreTax401k:CSchwab:Gains > (separate from my regular brokerage account Income:CSchwab:Gains) > -and that all gains / losses from this account will be ignored tax wise > for now > (won't be included on my 1040 until i take money from it when i am old > person) > > 3. When checking Martin's example file i saw he uses "IRAUSD" currency for > 401k, > could someone explain why? What's the idea behind it? (comparing to using > USD) > > 4. Any other tips / advises you can give regarding 401k books ? > > Thank you > -- You received this message because you are subscribed to the Google Groups "Beancount" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To view this discussion on the web visit https://groups.google.com/d/msgid/beancount/09128ccb-5fdf-4e21-bfc2-d3013269bd9cn%40googlegroups.com.
