Thanks, Jacob, I like that approach and finally it makes some sense to me. Its been driving me crazy for several days! On Sunday, January 1, 2023 at 10:03:08 PM UTC-6 [email protected] wrote:
> I think this depends on how you want to keep your books - either > recognizing income in the year it is received, or waiting until the year it > is taxable. If the latter, then this seems to be caused by income in a > prior year being overstated, or more likely, opening equity the first year > you began keeping records was overstated because there technically should > have been a liability account for deferred income (created when a > contribution was made to the IRA). I think a potential fix is to debit an > Equity account and credit Income:RMD. > > 2006-01-02 * "RMD from IRA" #RMD > Assets:IRA -100 USD. ; from tax free IRA > account (cash) > Expenses: Taxes 20 USD. ; to Uncle Sam - IRS > Witholding > Assets:InvestmentAC 80 USD ; to taxable brokerage account > (cash) > Income:RMD -100 USD ; taxable RMD > Equity:PriorPeriodAdj. 100 USD ; deferred income liability > from a prior year > > > If you were keeping records in the year of contribution I think the entry > would have been something like: > > 1996-01-02 * "Contribution to IRA" > Assets:IRA 100 USD > Assets:Cash -100 USD > Income:EarnedIncome 100 USD ; reduce income by the amount > being deferred > Liability:DeferredIncome -100 USD ; create liability since this > income has to be recognized later > > and then the future distribution: > > 2006-01-02 * "RMD from IRA" #RMD > Assets:IRA -100 USD. ; from tax free IRA > account (cash) > Expenses: Taxes 20 USD. ; to Uncle Sam - IRS > Withholding > > Assets:InvestmentAC 80 USD ; to taxable brokerage account > (cash) > Income:RMD -100 USD ; taxable RMD > Liability:DeferredIncome 100 USD ; deferred income liability > from a prior year > > All that to say, I think I would go with Martin's solution due to the > simplicity of counting it as income the year it was received, and not this > year - although it would still be necessary to track separately for taxes. > > > On Sun, Jan 1, 2023 at 6:05 PM Martin Blais <[email protected]> wrote: > >> You could try posting like initially to a transfer account, and then a >> query like >> select ... where account ~ ':RMD' and number > 0 >> >> Alternatively, you could write a script that detects transactions with >> IRA and RMD postings and highlight those. >> >> >> >> On Mon, Jan 2, 2023 at 8:15 AM Paul Marriott <[email protected]> wrote: >> >>> what I am doing right now is adding a tag so I can at least track >>> RMD's. Its really a deferred income stream, but since it was received in >>> the past before I started using beancount, I'll just tag them so I can >>> collect the year end amounts to check and/or include on my tax return. >>> >>> 2006-01-02 * "RMD from IRA" #RMD >>> Assets:IRA -100 USD. ; from tax free IRA >>> account (cash) >>> Expenses: Taxes 20 USD. ; to Uncle Sam - IRS >>> Witholding >>> Assets:InvestmentAC 80 USD ; to taxable brokerage account >>> (cash) >>> >>> On Saturday, December 31, 2022 at 5:52:56 PM UTC-6 [email protected] >>> wrote: >>> >>>> Thinking further on this, this problem is so common that it deserves >>>> some new abstraction (beyond just solving the issue with a plugin). I'm >>>> not >>>> sure what that would look like, but some way to automatically update the >>>> value of a pair of accounts based on the flows into a third one is what >>>> I'm >>>> thinking about. >>>> >>>> On Sun, Jan 1, 2023 at 10:50 AM Martin Blais <[email protected]> wrote: >>>> >>>>> On Sun, Jan 1, 2023 at 8:55 AM Paul Marriott <[email protected]> >>>>> wrote: >>>>> >>>>>> I have a taxable investment account and an IRA. Every month RMD >>>>>> (required minimum distribution) is taken from my IRA and added to my >>>>>> investment account after Tax withholding. I am not sure how to post >>>>>> this >>>>>> transaction. Right now I have: >>>>>> 2006-01-02 * "RMD from IRA" >>>>>> Assets:IRA -100 USD >>>>>> Expenses: Taxes. 20 USD >>>>>> Income:RMD. 80 USD >>>>>> >>>>>> 2006-01-02 * "Transfer from IRA" >>>>>> Assets:InvestmentAC. 80 USD >>>>>> Income:RMD. -80 USD >>>>>> >>>>>> The problem I want to record RMD as income, but with the above >>>>>> postings, the income account is net zero. What am I doing wrong? Or >>>>>> maybe >>>>>> I just cant record it as income, although it will appear as income on my >>>>>> Tax Return. >>>>>> >>>>> >>>>> Technically they're not income, they're distributions. Taxable >>>>> distributions. I wouldn't book them under an income account. >>>>> This is one of those cases - there are many more - whereby you want to >>>>> count the amounts incoming to that RMD account. >>>>> There are two ways I've handled this in the past: (a) by mirroring >>>>> (with a plugin) the amounts posted to RMD to two distinct sets of >>>>> accounts, >>>>> (b - simpler) by issuing a query to count them up over a period of time >>>>> (the amounts don't automatically update any account). >>>>> >>>>> >>>> -- >>> 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/9604f242-6112-474d-9bc8-5ec540fc4212n%40googlegroups.com >>> >>> <https://groups.google.com/d/msgid/beancount/9604f242-6112-474d-9bc8-5ec540fc4212n%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/CAK21%2BhMhbmvTKsu5ygWNcm_mCa6UoxMSk5adSdKEGHdCgJAOOw%40mail.gmail.com >> >> <https://groups.google.com/d/msgid/beancount/CAK21%2BhMhbmvTKsu5ygWNcm_mCa6UoxMSk5adSdKEGHdCgJAOOw%40mail.gmail.com?utm_medium=email&utm_source=footer> >> . >> > -- You received this message because you are subscribed to the Google Groups "Beancount" group. 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