403b loan

[David T.]

Trying again, since SpamCop triggered (again)…(This is getting annoying)

Dennis,

You’re asking an accounting question, and I am not an accountant, but here’s what I suggest:

A 403b loan (according to the web search I just made) is a US Tax creation that establishes a Tax-Deferred Defined Contribution plan. This is (I believe) similar to any other such tax-deferred plan, such as an IRA, 401(k), etc. You put money in (before taxes), it sits until you retire, and then you draw out after retirement, paying taxes at a presumably lower rate.

As such, it is an asset, and you would track it in GnuCash like any other such asset. If your 403b is in mutual funds, look at how mutual fund accounts get handled. If it’s in stocks, follow that set of procedures. If it’s in BitCoins, well… (inside joke). There are lots of discussions in the lists about how to handle each of these asset categories, and the Tutorial also covers them. We can help with other specific questions as you go.

The only thing even moderately special about this will be that you will track any interest or dividends for this account separately from taxable accounts, so you don’t put that income into your tax return. Otherwise, it’s pretty straightforward.

David

On Feb 9, 2014, at 5:21 AM, Dennis Powless <claven123 at gmail.com> wrote:

> I'm trying to track a 403b loan.  Initially I set it up as a liability
> account, but it didn't really work well.  Then I set it up as a asset
> account 'linked' to the asset fund account and the cash asset account.
> What is the proper way to do this in gnucash?
> 
> Dennis
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