On Thu, Oct 28, 2021 at 6:45 PM Bman Q <mplo...@gmail.com> 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. >
Thank you BmanQ! I'm glad this accounting library is able to help you. > 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) > I'm not sure. What does the IRS require you to declare? I think that's the answer. Now if I were you, in the personal account I wouldn't casll this "Assets:BusinessChecking" but instead would categorize it as Income:Business:401kContribution or somesuch. On the business side, that's an expense, no? So I'd replace the Equity accounts by expense accounts. (In general, you should have very, very little explicit transactions to an Equity account and they should look like exceptional transactions that occur rarely and for adjustments.) > 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) > Yes, and yes, but personally I still account for these using cost basis so that I can calculate P/L. One problem is that brokers don't need to report cost basis for those accounts, so they tend to provide much less support for tracking that, and so you end up using average cost basis tracking on closing transactions. 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) > This is a fictional currency used to track "Dollars eligible to contribute to the IRA." You have a maximum; at the beginning of each calendar year you reset it. Track it in parallel with the contributions (mirroring them). Allows you to track how many remaining contributions you are eligible to make. You don't really have to use it nor its mirroring, it's just a convenience. > > 4. Any other tips / advises you can give regarding 401k books ? > Maximize your 401k. Maximize your Roth. Even if the investment choices are subpar in there. The absence of taxes makes those returns hard to beat at least compared to regular passive investing returns. 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 beancount+unsubscr...@googlegroups.com. > To view this discussion on the web visit > https://groups.google.com/d/msgid/beancount/7a210e41-4f33-41dc-b5b5-0280567153b4n%40googlegroups.com > <https://groups.google.com/d/msgid/beancount/7a210e41-4f33-41dc-b5b5-0280567153b4n%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 beancount+unsubscr...@googlegroups.com. To view this discussion on the web visit https://groups.google.com/d/msgid/beancount/CAK21%2BhPO47S9G5j5su-myFJP_5Y12Yww-P10jHE%3DRFrFYs3rOA%40mail.gmail.com.
