Accounting Treatment of Taxable IRA Distributions

[Les]

On 05/06/2013 10:31 AM, Paul Schwartz wrote:
> To me some of your problem comes from having listed your IRA in your
> assets; it doesn't really belong to you yet. It is really a separate
> entity. When you take a distribution [as I must this year], you transfer
> the money from the IRA to your checking account. So, you create a
> transaction that debits Checking and credits Income. Eventually, you will
> also pay the associated taxes, although you may have had some withholding
> done. That will alter the prior transaction.
>
> This view is from an accounting perspective. When you think about the
> present value of your net worth, you would like to include your IRA.
> Present values complicate the accounting task significantly as there are
> many adjustments [liabilities] that need to come into play to do it
> correctly. I opt for maintaining my books on a cash basis, and generate a
> stand alone balance sheet to assess current status [it ignores most of
> those other adjustments needed to do the accounting properly].
>
> HTH
>
> Paul
>
>
> On Sat, May 4, 2013 at 2:12 AM, Jay Ridgley <jridgley2 at austin.rr.com> wrote:
>
>> Folks,
>>
>>  Well it it is finally time that I move money from my IRA to my checking
>> account...
>>
>> IRA Cash Holdings ---> IRA Distributions(Taxable)
>> IRA Distributions(Taxable) ---> Checking Account
>>
>> The IRA Distributions(Taxable) account is an Income Account, correct? How
>> do I get the money that is transferred to it to show as such.
>>
>> When I attempt to move money from the IRA Cash Holdings account to IRA
>> Distributions(Taxable) it shows up there as a Charge not as Income. Why?
>>
>> I am Running 2.4.10 on Ubuntu 12.04-4
>>
>> Cheers,
>> Jay
>> --
>>
>>
>> Jay Ridgley
>> jridgley2 at austin.rr.com
>> Registered Linux User ID - 9115
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>> Registered Ubuntu User ID - 23320
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I would disagree that an IRA is not an asset.  It is indeed an asset, as
it is something you own.  In my case, I have an asset called Investments
(under Current Assets) with my IRA a sub-account of it. 

Regards,
Les