It's a traditional IRA. I also have a 403(b). I'm taking required minimum distributions from both.
I have an asset account and a "dummy" account for each. When I take an RMD, I create an income transaction that shows where the money goes: checking account, federal withholding, and state withholding. Then I create a withdrawal in the asset I'm taking the RMD from and deposit that withdrawal in the corresponding dummy account. This hack seems to work, but it doesn't feel right to me because it seems to violate the double-entry principle. ________________________________ From: Stan Brown (using GC 4.14) <stan...@fastmail.fm> Sent: Friday, December 27, 2024 8:13 AM To: Brad Morrison <bradmorri...@sonic.net>; rgpla...@outlook.com <rgpla...@outlook.com> Cc: gnucash-u...@lists.gnucash.org <gnucash-u...@lists.gnucash.org> Subject: Re: [GNC] How to treat IRA distribution as income On 2024-12-27 00:35, Brad Morrison wrote: > > This may seem basic, but is your IRA > (https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fen.wikipedia.org%2Fwiki%2FIndividual_retirement_account&data=05%7C02%7C%7C68a362b3cb0f4e2f12af08dd26916130%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C638709128013877626%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=%2FhC5VDKIUzCuCUqnOWZ5goI3WTek4GABrgJhLpnljc8%3D&reserved=0<https://en.wikipedia.org/wiki/Individual_retirement_account>) > traditional or Roth? > > IRAs can be taxed at the contribution stage or at the withdrawal stage. Or both. If you ever made nondeductible contributions to your traditional IRA, part of each distribution will be taxable and part will be nontaxable. If you withdraw too soon from your Roth IRA, part of the withdrawal may be taxable, and there may be penalties as well. See Publication 590-B for detailed rules on both of these: https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.irs.gov%2Fforms-pubs%2Fabout-publication-590-b&data=05%7C02%7C%7C68a362b3cb0f4e2f12af08dd26916130%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C638709128013896351%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=DoXCqvWVE2cRrIJerRNNZd5us%2B7n1gz2q4lGMHb1cCE%3D&reserved=0<https://www.irs.gov/forms-pubs/about-publication-590-b> Stan Brown Tehachapi, CA, USA https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fbrownmath.com%2F&data=05%7C02%7C%7C68a362b3cb0f4e2f12af08dd26916130%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C638709128013910691%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=UvUEJwPyu59MC89EO%2FVSk2W%2B1QnVHFQl4bxja7UN17U%3D&reserved=0<https://brownmath.com/> _______________________________________________ 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.
