Entering RRSP Transaction in GnuCash

[jfjunior]

Thanks Edward,

Breaking the gross income in taxable and non-taxable is a good idea. Now
from the $1200.00, $1000.00 is what I get net in my account, and the sample
of 2 x $100.00 entries are taxes, etc. I have about 7 deductions
(insurance, cpp, ei, charitable donations etc...which I didn't list).

Any idea how I should proceed with the first transaction, when my employer
makes a deposit to my RRSP account directly? :)

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

Thanks again.

Jay


On 12 April 2015 at 01:19, Edward Doolittle <edward.doolittle at gmail.com>
wrote:

> In the last transaction, you should break your gross income into two
> parts: taxable ($1200) and non-taxable ($500, corresponding to RRSP
> contribution). Furthermore, maybe not everything in the $1200 is taxable.
> Paycheques typically have multi-way splits where both the credits and
> debits are split.
>
> On 11 April 2015 at 14:34, jfjunior <jfjunior at jfjunior.ca> wrote:
>
>> 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!
>>
>>
>>
>> --
>> View this message in context:
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>> Sent from the GnuCash - User mailing list archive at Nabble.com.
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>
>
>
> --
> Edward Doolittle
> Associate Professor of Mathematics
> First Nations University of Canada
> 1 First Nations Way, Regina SK S4S 7K2
>
> « Toutes les fois que je donne une place vacante, je fais cent mécontents
> et un ingrat. »
> -- Louis XIV, dans Voltaire, Le Siècle de Louis XIV, Chap. XXVI
>



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