On 12/26/2024 11:30 PM, Bob Plantz wrote:
I realize that an IRA distribution is not income, but the (USA) IRS treats it
as income. My IRA is in a mutual fund, and I sell shares to create a
distribution. The bulk of the money from that sale goes into my bank account,
another portion goes to the IRS for withholding tax, and the third portion to
my state withholding tax.
First of all, a regular IRA (not a Roth) or 401k distribution IS taxable
income. Remember, when the money was put in it did NOT count as taxable
income. It is income your were allowed to "defer". If at that time you
had recorded it as "deferred income" your path forward would be clearer.
Distribution transaction
debits cash, deferred income
credits IRA balance, income
Where in the CoA you would put an account like "deferred income" depends
on what you wanted your books to show (with regard to your total income
for tat earlier year). This is perhaps simpler for IRA/401k than more
complicated conditional compensation like "split dollar". But even with
IRA/401k there can be conditional complications. For example, were
matching employer contributions involved? How soon "vested" (and how did
you handle that?)
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.
