(Note that this does not directly address vesting, withholding nor
premature distributions.)
Thoughts?
Moshe
> Message: 8
Date: Fri, 13 Jan 2023 17:10:35 -0500
> From: Michael or Penny Novack
> To: R Losey , "David T."
> Cc: gnucash-user@gnucash.org
> Subject:
On 1/14/2023 1:07 AM, David T. wrote:
.
As for counting as income, most paychecks I've seen list the
employee's gross income at the top, with contributions to tax-deferred
accounts listed as deductions from the gross amount. This is why I
placed deferred income under income; the
Michael,
Thanks again for your perspective. I admit to being a little confused by your
comments here.
My breakdown was based on an earlier post that emphasized the need to isolate
the initial deposits into a "deferred income" account and add the extra entries
at distribution time. I
On 1/13/2023 11:48 AM, R Losey wrote:
Thanks. The only minor drawback is that I seem to be entering the data
twice under "Income" just to keep track of IRA distributions on their
own. But hey, it's one way to make it work.
And, as has been pointed out, since this is not really "income", it
I suppose a way to handle the "Income but not really income" would be ao
follows (see what people think about this):
CR - Assets: IRA $1000
DB - Income: IRA Distribution $1000
CR - Income: IRA Distribution $1000
DB - Assets: Checking $1000
This way, the income change is zero, but I can still
Sorry about "category" versus "account" -- I still, after 7 years, have
Quicken habits... but I would argue that many people see an "account" as
something that has both debits and credits (like a bank account), as
opposed to "categories", which, for the most part, only have credits or
debits (like
Thanks. The only minor drawback is that I seem to be entering the data
twice under "Income" just to keep track of IRA distributions on their own.
But hey, it's one way to make it work.
And, as has been pointed out, since this is not really "income", it makes
sense that the transaction has no net
Jan 11, 2023 18:07:03 R Losey :
I apologize for not using "debit" and "credit" terms, but I'm not sure
I'd
get them right.
I also have to think a bit sometimes to get them right. As someone(s)
said, debits are always on the left, credits on the right. I just
remember that money flows
On 2023-01-12 21:08, Stan Brown wrote:
> And speaking of distributions, did you miss the note I posted at 11:33
> this morning (Pacific time)? I really don't know why you have no choice
> about having withholding taken from an IRA distribution. You can
> _choose_ to do it, or you can file
On 2023-01-12 20:55, David T. via gnucash-user wrote:
> Two separate entries. In my mind, this would best be put in one transaction,
> to make the association obvious.
>
> CR - Assets: IRA $1000
> DB - Assets: Checking $1000
> DB - Income: Deferred Income $1000
> CR - Income: IRA Distribution
On 2023-01-12 20:19, R Losey wrote:
> Let me write through a couple of cases. In the first one, I'm selling
> $1000 worth (10 shares) of security A and having it go directly to my
> checking account with no income tax withholding. (some of these may be
> USA-centric terms; I apologize for that).
Two separate entries. In my mind, this would best be put in one transaction, to
make the association obvious.
CR - Assets: IRA $1000
DB - Assets: Checking $1000
DB - Income: Deferred Income $1000
CR - Income: IRA Distribution $1000 *
* Income: IRA Distribution is used to document the
Hi Everybody,
I must thank you (David T., Michael D Novack, Stan Brown, Richard Losey, if
I missed someone it was unintentional) for your excellent insights!
I believe that I have my answer of how to enter the transaction and what
account structure I require if I want the transactions to show
Thanks for all of the information... however, getting back to the original
question, I'm not sure how to record IRA taxable distributions. I thought I
was doing it, but I am apparently not.
Let me write through a couple of cases. In the first one, I'm selling
$1000 worth (10 shares) of security
Careful folks.
This is now way beyond 'how to do this in GnuCash' and very much knee
deep in realms that require (several) special pieces of framed paper
hanging on walls.
Regards,
Adrien
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Thanks for the trip down Memory Lane, Michael. I had long forgotten the
'Owes/Trusts' origin of the system. I think many things are much easier
to understand when you find out 'why they are'. Learning the basics of
the 'old days' helped me to grok Debits & Credits many moons ago.
Regards,
On 1/12/2023 12:41 PM, R Losey wrote:
Thanks; I know the information is out there, but intuitively, it doesn't
make sense to me that depositing funds to my bank account is a "debit"
transaction to the bank. It comes from the concept of credit being "added
to" and debit being "substracted from",
On 2023-01-11 19:52, Milton Stern wrote:
> ** New for 2023. IRS requires the brokerage to withhold taxes from IRA
> Distributions. Last year you could specify 0% withholding.
> ** They don't make it so easy this year. It is sort of a double hit.
> Even if you get it back as a tax
On 2023-01-12 09:41, R Losey wrote:
> Thanks; I know the information is out there, but intuitively, it doesn't
> make sense to me that depositing funds to my bank account is a "debit"
> transaction to the bank. It comes from the concept of credit being "added
> to" and debit being "substracted
It is intuitive, but your issue is one of perspective:
From *your* perspective, your bank account is your asset.
You increase it *in your books* by a Debit.
But from the *bank's* perspective, your account with them is their
liability, and is increased by a Credit.
That is why when you put
I'll try interspersing... using RL>>>
On Wed, Jan 11, 2023 at 9:52 PM Milton Stern wrote:
> Hi,
>
> Please see below
>
> Moshe
>
> On Wed, Jan 11, 2023 at 7:06 PM R Losey wrote:
>
>> Hello.
>>
>> Assuming you take out $5,000 and they withhold 10% ($500), I would use a
>> split
Thanks; I know the information is out there, but intuitively, it doesn't
make sense to me that depositing funds to my bank account is a "debit"
transaction to the bank. It comes from the concept of credit being "added
to" and debit being "substracted from", I suppose.
Is the "Debit on the left"
Not being qualified as a CPA, I am loathe to advise on accounting
matters (as opposed to how to do it using gnucash rather than pen and
ink on paper)
But THIS previous response should go a long way toward setting you on
the right track because it discusses the EXACT reverse problem (when the
Moshe,
This issue has come up many times over the years, for the very reason you
raised: a direct transfer from the IRA asset account to your Checking at
account won't show as income in reports.
The best way I've seen for how to handle this requires that your initial pay
records isolate the
You probably noticed that the answers here lead to multi account splits
that resemble a simplified paycheck transaction.
If it happens that you are also tracking the qualified account details in a
brokerage account, possibly even with variations for traditional accounts
vs Roth accounts you may
Hi,
Please see below
Moshe
On Wed, Jan 11, 2023 at 7:06 PM R Losey wrote:
> Hello.
>
> Assuming you take out $5,000 and they withhold 10% ($500), I would use a
> split transaction... sell $5000 worth of the mutual fund, add $4500 to your
> bank account, and $500 to federal income tax
+1
Regards,
Adrien
On 1/11/23 6:29 PM, Stan Brown wrote:
How would you do it in a pen-and-ink ledger? The answer is the same for
GnuCash.
So many people seem to be under the impression that GnuCash does
accounting ion its own special way. It's much more helpful, in my
opinion, to think of
For completeness and posterity, that would be:
Dr. Assets:Bank
Dr. Expenses:Tax
Cr. Assets:Fund
If you're ever unsure as to what the 'formal' column labels would be,
you can always toggle Preferences > Accounts > Labels > Use formal
accounting labels while viewing a register in question.
How would you do it in a pen-and-ink ledger? The answer is the same for
GnuCash.
So many people seem to be under the impression that GnuCash does
accounting ion its own special way. It's much more helpful, in my
opinion, to think of GnuCash as an automated version of the pen-and-ink
ledger
Hello.
Assuming you take out $5,000 and they withhold 10% ($500), I would use a
split transaction... sell $5000 worth of the mutual fund, add $4500 to your
bank account, and $500 to federal income tax paid.
I apologize for not using "debit" and "credit" terms, but I'm not sure I'd
get them
Hi,
What would be the recommended method of Entry for an IRA Distribution?
The Distribution is for a personal IRA (not Roth).
The IRA is of Mutual Funds.
The Mutual Fund is in Assets > Investments - Retirement > Brokerage > etc.
> etc.
Since this is taxable income, I need to track withholding
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