On 12/30/2017 4:39 PM, Klaus Dahlke wrote:
Hi Wolfgang,
I have modeled a comparable plan as follows: first of all, I record my salary
only net. Salary is what is posted to my bank account after all deductions.
I you don't participate in such plan, posting is straight forward, e.g.:
Bank <-> Income:salary -> 1000
If you participate in the plan, a further account is helpful to show the plan
contribution. Also, the amount transferred from your company to your bank is
reduced by your own contribution and the taxation for companies' addition.
Stop --- this advice depends on jurisdiction (in the US, the
contributions if "pretax" are taxed only at distribution time many years
down the road). But there may be other complications. The employer
contribution is usually "conditional" becoming vested over time.
Accounting for a 401k is complicated.
I'm at the other end of this process. But were I using gnucash during
the money going in phase I probably would account for the 401k on a
separate set of books. Like I said, the "net worth" of a 401k depends on
lots of things like vesting and current age (can money be received
without penalty tax in addition) and even can be conditional on why
money taken out, and whether taken out or borrowed (if the plan allows
that)
Michael D Novack
Michael D Novack
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