3. IRAUSD - another possible reason would be to track total basis dollars across all positions in the IRA. Roth IRA early withdrawals is penalty free until you start getting into any earnings, so it's useful to know how much you put in and paid taxes on.
4. Other notes - cost basis in an IRA is usually AVERAGE cost basis. Vanguard for example uses average basis exclusively in IRAs last I checked. I added support for it, but we had to revert it for a performance issue on very large ledgers. I never put in the work to fix that and get it re-merged, but I do use it extensively myself. You can use it in https://github.com/beancount/beancount/tree/average_booking_rollback if you like. On Thu, Oct 28, 2021 at 4:32 PM [email protected] <[email protected]> wrote: > 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 > <https://groups.google.com/d/msgid/beancount/09128ccb-5fdf-4e21-bfc2-d3013269bd9cn%40googlegroups.com?utm_medium=email&utm_source=footer> > . > -- 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/CACGEkZv%3Dqf47bmB4kQV9MnwoS%2BRm7cBGpjyNg_BmWU0RyW4aag%40mail.gmail.com.
