Ken Schneider
> On Apr 6, 2021, at 10:55 AM, Michael or Penny Novack > <[email protected]> wrote: > > On 4/5/2021 8:57 PM, David Carlson wrote: >> David P, >> What verb would you use to declare that transactions in or out of a >> particular account should appear in a tax report as part of the total that >> should appear, for example, on a certain line on form 1099-R from a certain >> custodian. The tax schedule report assigns, associates, links or somehow >> picks out which transactions create the list of transactions that should be >> included on whichever line of whichever form to be reported to the U.S. >> IRS. The user should have created a certain income account to identify >> cash moves from a tax deferred asset account to a current asset account, >> which should appear on a certain 1099-R form, linked to that form in the >> tax report, and those transactions appear on that line in the tax report. > > I am going to repeat. Not that simple. Distributions from a "regular" IRA > would be simple (since all contributions were pre-tax). That is not true for > a 401K which might have had most contributions pre-tax but MIGHT have also > had post-tax contributions. All contributions to a Roth IRA are post-tax. > > That means all distributions from a regular IRA are taxable income. > > Most distributions from a 401k are taxable income (but a portion of a > distribution might not be). AFAIK, most administrators of a 401k will get the > non-taxable money out first so only needing to cope with one mixed > distribution and from then on entire distribution taxable. The statements you > get for a 401k usually show what part (if any) of the contribution balance is > post-tax. > > Most distributions from a Roth IRA are mixed, part taxable, part not. I do > not know what administrators of a Roth do. I don't know what statements from > a Roth look like. > > Michael D Novack > ROTH IRA’s use after tax contributions only, therefore any distribution from a ROTH IRA is non-taxable. There is nothing that is mixed. You can convert standard IRA’s into a ROTH IRA but you will have to pay taxes on any funds converted to the ROTH IRA. If you’re good at investing you can make a boatload of non-taxable money using a ROTH IRA. Ken Schneider _______________________________________________ gnucash-user mailing list [email protected] To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
