12:36am -0000 06/11/26 David T. via gnucash-user <[email protected]>...:

>1) Almost any sale of shares will result in gains or losses, and you should 
>track them as such. Since they have no effect on taxes, I shunt mine all to 
>Income:Realized Gains:Untaxed:Untaxed LT Gains. Recent discussions here 
>regarding distributions suggest that there may be situations where the 
>gains in a retirement account need to be tracked and reported separately, 
>but as I have not yet crossed this threshold, I cannot comment. . . . 

I guess a distinction could be made between untaxed long-term and short-term 
gains. As far as the OP's specific question, for any management fee expense 
not tied to a specific sale of securities, offset it against interest.

For tax law compliance, I am not aware of a situation in which a 
distribution from retirement funds could be a long-term capital gain and not 
ordinary income. I'd be grateful for an example if I'm getting it wrong.

>On June 11, 2026 5:52:21 AM GMT+05:30, Sherlock <[email protected]> wrote:
>>Hi Clint,
>>
>>Generally, there is no need to track lots in a 401(k) account. Otherwise, you 
>>should treat the "Realize Gain/Loss" as non-taxable capital gain income.  For 
>>example, Income:Cap. Gain (long):Fidelity 401K:Fund A
>>
>>Regarding the "microscopic amount of cash", if this is a change in the value 
>>of a holding, this could be a rounding difference due to price accuracy or 
>>adjustment.  If there is a cash transaction, I think Fidelity should be 
>>providing the reason.
>>
>>Regards,
>>
>>Sherlock
>>
>>On 6/10/26 1:36 PM, Clint Chaplin wrote:
>>> This has absolutely nothing to do with using GnuCash itself, but rather
>>> what accounts/structure I should be using, so you are perfectly free to
>>> tell me this is the wrong place....
>>> 
>>> I have a 401(k) at Fidelity, and periodically an administrative fee or
>>> bookkeeping fee is taken from the accounts.  The funds for the fees are
>>> raised by selling off microscopic amounts of the mutual funds the 401(k) is
>>> invested in.  I do understand that those sales are not considered
>>> "disbursements" by the IRS, so no tax implications there.  Also, the cash
>>> that is raised by the sales I record as an expense, just to keep track of
>>> it.
>>> 
>>> The really fun part comes when I scrub the accounts and the "Orphaned
>>> Gains" are generated, which seem to represent the "realized gains/loss" of
>>> the microscopic amount of mutual funds that were sold.  What the heck do I
>>> do with them?  They are not cash income in the sense that I would think of
>>> it, but they don't seem to be equity, either.
>>> 
>>> And, if that seems easy to you (it isn't to me), every so often Fidelity
>>> will take some microscopic amount of cash from one of the 401(k) accounts,
>>> but not sell any of the mutual fund to cover the expense. (we're talking
>>> amounts up to $0.05).  Fidelity seems to have conjured the cash out of
>>> nothing, but I still would like to record it: the expense account to use
>>> seems pretty obvious to me, but what "income" account should I use?
>>> "Magic"?
>>> 
>>
>>
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