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 up in my income reports. Concerning the mention of the required withholding. My statement was nor entirely accurate (complete) for the sake of brevity. I am under the impression that you now have to submit form W-4R to lower (or raise) the withholding tax, instead of just stating whatever withholding that you wish (0%-100%) at the time of distribution request. Prior to 2023, you could just state, when you make the distribution request from the financial institution, that you did not want withholding taken. Now, I believe you have to submit a form (W-4R), based on your income (estimated tax bracket). Without this form submission, the default would be 10% for IRAs (I think 20% for 401K / 403b). With the submission, the withholding would be based on your expected income / tax bracket, so that the appropriate withholding will be taken per distribution, instead requesting whatever withholding you want, and making up the difference in quarterly estimates. I hope I am interpreting the info from my brokerage email incorrectly? Thanks again everyone, Moshe On Thu, Jan 12, 2023 at 12:46 PM R Losey <rlo...@gmail.com> wrote: > I'll try interspersing... using RL>>> > > > > On Wed, Jan 11, 2023 at 9:52 PM Milton Stern <drmos...@gmail.com> wrote: > >> Hi, >> >> Please see below ******** >> >> Moshe >> >> On Wed, Jan 11, 2023 at 7:06 PM R Losey <rlo...@gmail.com> 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 paid. >>> >> >>> I apologize for not using "debit" and "credit" terms, but I'm not sure >>> I'd get them right. >>> >> >> ******** Agreed. The component that I am having trouble with is the >> Pre-Tax IRA Distribution component. Because it is a Pre-Tax IRA, the >> distribution is taxable as income. >> ********The direct "sell $5000 worth of the mutual fund, add $4500 to >> your bank account" direct transaction will not show up in Income Reports. >> > > RL>>> In my brokerage account, I actually "sell" the stock and put it in > the parent account, using the "IRA income category", and then I do a second > transfer from the brokerage account to my bank. Example: > > Brokerage account (the parent holding account) > Sweep Fund > Holding 1 > Holding 2 > > > > >> >> >>> >>> You can track them however you wish, but the above is how I would do >>> them... well, except, I never have the mutual fund withhold taxes; I pay my >>> own taxes quarterly. >>> >> >> ****** 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 refund, you can't put it back (Rollover) >> into the IRA to earn tax free. >> > RL>>> That's TERRIBLE! Grrrrr. I wonder what the minimum one can withhold > is? > > > >> >> >>> >>> >>> On Wed, Jan 11, 2023 at 4:35 PM Milton Stern <drmos...@gmail.com> wrote: >>> >>>> 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 (Federal) + >>>> Net >>>> Distribution to a Checking Account (Assets > Current Assets). >>>> No Commission fees are applicable, but it would be nice to know >>>> where/how >>>> they would be tracked. >>>> >>>> Thank you in advance, >>>> >>>> Moshe >>>> _______________________________________________ >>>> 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. >>>> >>> >>> >>> -- >>> _________________________________ >>> Richard Losey >>> rlo...@gmail.com >>> Micah 6:8 >>> >> > > -- > _________________________________ > Richard Losey > rlo...@gmail.com > Micah 6:8 > _______________________________________________ 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.
