403b loan

Dennis Powless claven123 at gmail.com
Mon Feb 10 10:22:53 EST 2014


Ok, thanks for the info.  That was not was I was asking.

I'm looking at how to handle a loan against the 403b not how to enter a
403b investment.

I have an investment account set up as 403b Fund and a 403b cash account.
I 'transfer' money into this from my paycheck and buy shares etc....  this
all works great, no issues.

I want to pay on the 403b loan.  I then 'transfer' money from the checking
account to the 403b cash account, then transfer money to the 403b fund to
repay the loan, in reality buy shares.  The interesting thing is this is in
principle and interest, so two entries.  I've been able to do this without
issue.

I need to track the payoff of the loan, that is the issue.  I had made a
liability account and just enter transactions that 'match' to expense
accounts.  But this 'loan' is not a real liability, since it should be
considered an asset.  I think?

So, I set up an asset account in the investment area, in the same
subheading as the cash and fund account.  I then have the purchase or
paying of the 403b fund split to the cash account and the asset loan
account.

Any time I attempt to split with the liability account the money ends up
not as a debit.... just does not work.


Wow, not sure if anyone follows this.....




On Sun, Feb 9, 2014 at 6:48 PM, David T. <sunfish62 at yahoo.com> wrote:

> 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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