401K and Employer Contribution

T. Cabugao tycabugao at earthlink.net
Fri Feb 20 18:58:28 CST 2004


I've searched the archives but I can't see if this has been asked 
before. If so, I apologize.

My question is regarding employer's contribution to 401k's. My employer 
matches a percentage of my contribution to my 401k. Their match is 100% 
vested, so this money is basically mine once it is in my account. I was 
wondering, how I would account for this matching contribution in gnucash 
without it affecting my taxable income?

I am thinking the entry for the paycheck could be something like this:


Income:Salary                    		2000
Expense:Tax:Federal            		300
Expense:Tax:SocSec            		150
Expense:Tax:Medicare             	75
Assets:401kAccount(Employee Contrib)    200
Assets:BankAccount            		1275
Assets:401kAccount(Employer Match)    	100
Income: (?) (Employer Match)            	100

Would this be a correct entry? (Sorry, my last college accounting class 
was about 7 years ago.) What kind of income account would be best for 
this? If I create a new income account,and assign a Tax Category (Form) 
to that account, what Tax Form should I assign to it so it does not show 
up as a taxable income in my reports?

Thanks!



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