On 1/15/2024 9:47 PM, Jediator wrote:
I am not an accountant, so please excuse my ignorance. I was wondering is it really necessary to create a separate deferred income account when you could just do a transaction report on your IRA account to see how much distribution you had in a year or a month? -- JC
Yes of course, and you will get a 1099 for the distribution so you would be able to do your taxes using that.
But we are keeping books. The situation is different for those of us where money is still coming in to our IRA's or 401k's. Think for just a moment how you would be recording your salary as it came in. PART of what you are getting, both your contribution and the employer's match is NOT going to be reflected in your current taxable income. It is deferred income. You presumably DO want that reflected as adding to your net worth.
For those of us at the other end, those distributions might be a significant fraction of our (actual) income. If you aren't having the distribution showing up as (part of) income, you are likely to have expenses totaling more than income. You presumably do want a realistic Statement of Revenues and Expenses (P&L)
Michael D Novack _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
