How to deal with RRSP's (Canada)

[Cam Ellison]

On 02/01/18 06:52 PM, DaveC49 wrote:
> Larry
>
> If your withdrawals from the RRSP are taxable on withdrawal then I think
> your approach of using two files recording transfers to your bank account
> from the RRSP as Expenses in the RRSP account and  Income in your main
> accounts should work fine as it will satisfy the accounting equation in both
> files without any conflicts and will keep Gnucash happy.
>
> With both the RRSP and your bank accounts in a single file, the decrease of
> an asset (RRSP) is a credit to that account and an increase in Income (which
> it would have to be to record it as income for taxation) is also a credit to
> the income account in that same file, which would not be a balanced
> transaction in which the sum of debits and credits is zero.
>
>
For me, the RRSPs have been converted to Income Funds, but the principle 
and procedure are still the same. Contribution is straightforward: from 
a Current Asset account to the RRSP, like this:

Assets:Current Assets:Chequing Account        $5,000
Assets:Investments:RRSP                $5,000

Withdrawal is more complex, because you have to show Income, Withholding 
Tax, the receiving Account, and the RRSP account, so using an Equity 
account for RSP/RIF withdrawals is needed to balance, like this:

Assets:Investments:RRSP                                $5,000
Assets:Current Assets:Chequing    $3,500
Expenses:Taxes:Income Tax            $1,500
Income:RRSP $5,000
Equity:RSP/RIF                                $5,000

At any rate, that's how I do it. YMMV.

Cheers

Cam