How to handle IRA distributions?

[Buddha Buck]

What additional income? You haven't described any in this scenario. Your
net worth did not change when the IRA distributed money to you.

What gets complicated here is that a (traditional) IRA is a tax-deferred
income account. Which means that while you earn income in one year, you
don't pay income tax until it's distributed.

So if what you are trying to do is to account for income for tax purposes,
you need to track the distributions, not the income (which in theory you've
been tracking all along)

One way to do that is to have a contra account on the IRA account,
ASSETS\IRA\DISTRIBUTIONS, and then when you receive a check you CR the
IRA\DISTRIBUTIONS and DB CHECKING.

On Sat, Jan 23, 2016 at 9:15 AM Gary Holtum <diamondhranchqh at earthlink.net>
wrote:

> I have an IRA acct, ASSETS\IRA.
>
> Also have ASSETS\CHECKING
>
> So, I receive a check from IRA and CR IRA and DB CHECKING.
>
> But, this does not reflect an increase to my income.
>
> How do I account for the additional income?
>
> Gary H
>
> _______________________________________________
> gnucash-user mailing list
> gnucash-user at gnucash.org
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>