Tracking funds in a 401k

[Robert C. Ramsdell III]

I have a 401(k) account that I handle in a similar manner to some of the
other respondents.  When I get a paycheck, part of the split is a
transfer to Assets:Investments:401k.  The Assets:Investments:401k
account then has sub-accounts for each mutual fund I purchase, just like
any other investment account.

However, I make my 'purchases' when I get my quarterly statement (my
contributions accumulate in the top-level account until then).  When I
get my statement I add in the employer match (I count it as income) for
the quarter and then make the purchases.  I transfer the appropriate $
amount to the commodity sub-accounts, fill in the # of shares, and let
GnuCash calculate the purchase price (which ends up being an average for
the quarter).

It works for me, but is somewhat coarse-grained wrt time.

Robert

On Sat, 2005-09-17 at 00:27 -0400, Bradford R. Bowman wrote:
> I am having trouble figuring out the best way to track the value of a
> 403(a) (a 401(k)-like account for non-profits).  Perhaps someone can
> suggest a simpler method that the one I am thinking of. I have no
> accounting knowledge at all, as will be obvious.
> 
> The situation is fairly typical: each pay period there is an employee
> contribution to the fund that is matched by the employer (up to an
> annual cap).  These contributions are divided according to set
> percentages and applied to the purchase of shares in four different
> funds managed by TIAA-CREF. The per share value of each fund fluctuates
> separately, so that even if she splits the contributions across the four
> funds evenly for a given pay check, she acquires a different number of
> shares in each fund. 
> 
> I want to be able to account for the employee contribution that is
> deducted from her paycheck, but the nature of the retirement account
> makes this complicated, as it appears that I need to reference the
> current share prices of each separate fund and then calculate the
> increase in shares.
> 
> Originally, I just had one account, labeled 401k, which was a "bank"
> type account. But that is not accurate.  It seems to me that the only
> way I can track the value of this is by making the 401k a "mutual fund"
> type account, and then splitting it into four separate accounts -- one
> for each of the four funds, like so:
> 
> 9/16 Teacher Salary 
> 	Income:Salary				1,000.00
> 	Investments:401k:fund1		25.00
> 	Investments:401k:fund2		25.00
> 	Investments:401k:fund3		25.00
> 	Investments:401k:fund4		25.00
> 	Expenses:Taxes:etc...
> 
> 9/16 Employer 401k contribution
> 	Equity:Employer match		25.00
> 	Investments:401k:fund1
> 	etc...
> 
> This just seems crazy though. Is it? Is there an easier or better way?
> Any advice would be appreciated.
> 
-- 
Robert C. Ramsdell III
5528 Middaugh Avenue
Downers Grove, IL 60516
(630) 435-1776
rcriii at ramsdells.net