Withdrawing funds from a tax deferred account

[Dale Alspach]

Let me give the sample entries for a $100 distribution from a tax deferred
asset named Retirement that is deposited to Checking

credit 100.00 Retirement
credit 100.00 Taxable Income Retirement
debit 100.00 Checking
debit 100.00 Conversion to Taxable

If you are a US taxpayer, the total of the amounts in Taxable Income
Retirement should be what is reported on the 1099 R statements for the
accounts represented by Retirement. (It is more complicated if only some of
the funds in Retirement are tax deferred.)

Dale

On Tue, Dec 22, 2015 at 1:58 PM, Richard Dawson <rcdawson at att.net> wrote:

> I'm not quite sure I follow:  The distribution is moved from from the
> tax deferred account to the Conversion to Taxable expense account and
> then from there to the checking account?  Then you create a report of
> taxable income by adding up any transactions moving money from income to
> checking and from Conversion to Taxable?  Do I have that right?
>
> On 12/22/2015 07:29 AM, Dale Alspach wrote:
> > I have the same issue. What I did was to create a new expense account
> > Conversion to Taxable
> > and double enter any transaction: once to convert the retirement fund
> asset
> > to another, e.g., checking and second as "taxable income" to Conversion
> to
> > Taxable. This is done within a single gnucash transaction.
> >
> > I do not know what an accountant would think of this. Also this may
> produce
> > some issues with certain reports. Total expenses and total income are
> being
> > artificially increased. It does give you a way to flag the income for
> > income tax purposes.
> >
> > Dale
> >
>
>