I had a brain storm (aka too many dental appointments). <br>In one of the previous postings on the 401K loan had a description of being the payee and the payer of the loan. <br>So the way I have it going now is. <br><br>There is a entry accounting for a payroll deduction dropping to an interest expense account and the loan liability account.
<br>The above transaction generates income from the interest and principal. <br>A transaction hitting a 401K income account (there should probably be split between interest and principal) and the 401K asset account is made.
<br><br><br><br><br><div><span class="gmail_quote">On 12/28/05, <b class="gmail_sendername">Andrew Sackville-West</b> <<a href="mailto:andrew@farwestbilliards.com">andrew@farwestbilliards.com</a>> wrote:</span><blockquote class="gmail_quote" style="border-left: 1px solid rgb(204, 204, 204); margin: 0pt 0pt 0pt 0.8ex; padding-left: 1ex;">
<br><br><a href="mailto:brydone@btinternet.com">brydone@btinternet.com</a> wrote:<br>> If the loan is for principal only, I think the simplest entries are this<br>> when setting up your account:<br>><br>> Loan Account Cr401,000 (owing your lender)
<br>><br>> Bank Account Dr 401,000 (putting money into your account from<br>> lender)<br>> ------------------------------------<br><br><br>ummm... I think OP was refering to a loan from his 401k retirement
<br>account. your explanation was good, but do you have one for this<br>application? He has to track it both in his bank/liability accounts but<br>also within his 401k account as some of his liquid assets in that<br>account will be turned into a loan...
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