Entering RRSP Transaction in GnuCash

[jfjunior]

Hi everyone,

I've edited my original post for more clarity. 

I'm wondering if someone can help me with a question about the proper way to
register a transaction where my employer makes a direct contribution to my
RRSP account.

RRSP is more or less the Canadian equivalent of the USA 401(k) and as such
is a Retirement Fund. Basically my employer makes a biweekly contribution to
my RRSP account. For now I'm registering these transactions as an Income,
however this is not correct because RRSP contributions will only be
considered  income when I have access to the funds, at which time I will pay
Income Tax on the value I withdrawal from my account.

This is the way I'm entering my employer RRSP contributions to my RRSP
account in GnuCash, which I think is wrong:

DR: Assets:Investments:EmployerRRSPContrib - $100.00
CR: Income:MyName:RRSP - $100.00

Now if I make, for sake of argument,  a withdrawal of $500.00, I will enter
the transaction in GnuCash as as DR to EmployerRRSPContrib or
EmployeeRRSPContrib - depending from which account I'm making the withdrawal
from (my own contributions or my employer contributions). 

The example below assumes the withdrawal is from my Employer's RRSP
Contribution account. Note that I'm paying 10% Income Tax on the total value
of the withdrawal.

DR: Expenses:Taxes:Income Tax Investments - $50.00
DR: Assets:Current Assets:ChequingAccount - $450.00
CR: Assets:Investments:EmployerRRSPContrib -                $500.00

I also make RRSP contributions directly from my paycheque, which I register
in GnuCash this way:

DR: Assets:Current Assets:ChequingAccount:          $1000.00
DR: Taxes and Deductions:Expense01                      $100.00
DR: Taxes and Deductions:Expense02                      $100.00
DR: Assets:Investments:EmployeeRRSPContrib:         $500.00
CR: Income:Salary:MySelf (Gross Income)                                 
$1700.00

So the issue here is that the first transaction if fundamentally incorrect
as I cannot consider the RRSP contribution from my employer as an income
yet, since I've not accessed the funds and paid income taxes on it.

I would appreciate any input, so I can get this right. 

Thank you very much everyone! 



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