Retirement acct withdrawal accounting

[David Carlson]

I am not an accountant, so this may not pass accounting standards.

I have five accounts 1 Asset:IRA, 2 Expense:Taxable Distribution from IRA,
3 Income:Taxable from IRA, 4 Asset:Bank. and 5 Expense:Income Tax.

The 'real' part is transfer from the IRA to the bank and Income tax, and
then I add an Expense:Taxable Distribution and Income:Taxable from IRA to
the transaction.  I have set the Income account to be taxable reported on
form 1099-R in the tax report.  The Expense:Taxable Distribution from IRA
is just a bucket to offset the taxable income.

David C

On Sat, Apr 15, 2017 at 8:51 AM, Gregory Forster <fgreg74 at gmail.com> wrote:

> I always wait until I get the statement.   For example, I have some of my
> IRAs in mutual funds.  They show the withdrawal including how many shares
> were withdrawn, the share price at the time of withdrawal, etc.  They also
> show the gross, taxes withheld and net amount of the withdrawal.
>
> I use to keep all the information on a spreadsheet, but I found myself
> duplicating the same information. The spreadsheet was the best way to keep
> track of dollar amounts though.
>
> I guess what made it easy was that before I was disabled/retired, I was an
> Enrolled Agent for ten years, had my own tax accounting firm and also
> worked at a tax accounting firm during the tax season.  So spreadsheets
> came easy for me.
>
>
> On 4/15/2017 7:39 AM, Eric Beversluis wrote:
>
>> As I'm working on my taxes I realize that GnuCash as I've set it up
>> doesn't give me a readout on taxable distributions from my retirement
>> accounts.
>>
>> I enter them as transfers from the relevant retirement acct to my
>> checking, with expense entries for withheld taxes. So it would take a lot
>> of digging and copying to a spreadsheet to get the totals from GnuCash. Of
>> course I get 1099-R's that give me the total, but it seems to me that the
>> accounting system should show this too.
>>
>> I can't show it as a form of income, even though at the end of the year
>> it is part of my taxable income. It really is a transfer. My net worth does
>> not go up when I make a withdrawal from the retirement account.
>>
>> Any ideas how this should be handled in proper accounting? Do I maybe set
>> up another account ("Taxable retirement transfers"), enter the transfers
>> there and then transfer again to checking and tax expenses? That seems
>> rather Rube Goldbergian.
>>
>> Thanks.
>>
>>
> --
> Gregory L. Forster,
> 414-774-9208 Voice/FAX,
> 414-852-3109 Cell,
> fgreg74 at gmail.com
>
>
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