What is the accounting treatment for dividends reinvested in a retirement account

John Ralls jralls at ceridwen.us
Sun Oct 17 17:32:30 EDT 2010


On Oct 17, 2010, at 1:52 PM, Jay Ridgley wrote:

> Folks,
> 
> I get dividends that are reinvested into the stocks and mutual funds in my retirement accounts. These funds are not taxable until withdrawn. What is the proper classification of those moneys?
> 
> Currently I have them identified as income, however, it appears that since they are also being added to an asset account this overstates my actual income. What is the proper place(s) to record these items?
> 
> One side must be the account for the stock/mutual fund involved (I think) but what should about the other side?
> 
> I am a resident of the United States of America.
> 

Create a special income account for these dividends (Some people have individual income accounts for each income-producing security) and turn off "Tax Related" on it (or them if you go for one per security) in Edit>Tax Report Options".

Regards,
John  Ralls



More information about the gnucash-user mailing list