Entering RRSP Transaction in GnuCash

[Alice Lee]

Debit your RRSP account for the amount of employer contribution, credit a
liability account--deferred revenue.  When you begin drawing your
retirement, you would debit your bank account for the full amount received
and credit the RRSP account for the full amount received.  You would
likewise debit the deferred revenue account for the amount that is taxable
in that period and credit income for the same amount.  Hope this helps.

-----Original Message-----
From: gnucash-user
[mailto:gnucash-user-bounces+alee212007=satx.rr.com at gnucash.org] On Behalf
Of Mike or Penny Novack
Sent: Sunday, April 12, 2015 8:09 AM
To: gnucash-user at gnucash.org
Subject: Re: Entering RRSP Transaction in GnuCash


I'm wondering if someone can help me with a question about the proper way to
register a transaction where my employer makes a direct contribution to my
RRSP account.

RRSP is more or less the Canadian equivalent of the USA 401(k) and as such
is a Retirement Fund.

=

These (RRSP's, 401k's, etc.) can be tricky as they can involve all sorts of
complications. There may be need to keep track of before tax vs after tax
contributions, employees vs employer contributions, and perhaps "vesting"
applied to the latter (they may be conditional amounts). Yet such funds may
represent significant portions of net worth. As an aside, I will point out
that cash value life insurance may present similar problems, especially any
"split dollar" policies.

Were I trying to keep "books" for my 401K funds of life insurance values (so
I could see how they were doing as "investments") I would probably do that
outside the main books. Not necessarily outside of gnucash! I would open a
set of books for the 401k, a set of books for insurance policies, etc. That
way I could track the  "income" of these so could be compared to other
investments even though not income in the ordinary sense.

Then when desiring "total net worth" could simply add up the parts. 
Expecting our ordinary "books" to be able to do that is an illusion anyway
(*).

Michael D Novack

* For many of us, the potential capital gain on our residential real estate
might be a big chunk of the total. But that too is a conditional amount.

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