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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