[GNC] Tax deferred account transfers suggestion

[David Carlson]

GnuCash doesn't make those decisions,  they are up to the taxpayer.
 GnuCash can add up the transactions as the taxpayer has identified.

On Tue, Apr 6, 2021, 3:44 PM Charlie Morrison <sail43 at bellsouth.net> wrote:

>
> >> On Apr 6, 2021, at 10:55 AM, Michael or Penny Novack <
> stepbystepfarm at comcast.net> wrote:
> >>
> >> On 4/5/2021 8:57 PM, David Carlson wrote:
> >>> David P,
> >>> What verb would you use to declare that transactions in or out of a
> >>> particular account should appear in a tax report as part of the total
> that
> >>> should appear, for example, on a certain line on form 1099-R from a
> certain
> >>> custodian. The tax schedule report assigns, associates, links or
> somehow
> >>> picks out which transactions create the list of transactions that
> should be
> >>> included on whichever line of whichever form to be reported to the U.S.
> >>> IRS.  The user should have created a certain income account to identify
> >>> cash moves from a tax deferred asset account to a current asset
> account,
> >>> which should appear on a certain 1099-R form, linked to that form in
> the
> >>> tax report, and those transactions appear on that line in the tax
> report.
> >> I am going to repeat. Not that simple. Distributions from a "regular"
> IRA would be simple (since all contributions were pre-tax). That is not
> true for a 401K which might have had most contributions pre-tax but MIGHT
> have also had post-tax contributions. All contributions to a Roth IRA are
> post-tax.
> >>
> >> That means all distributions from a regular IRA are taxable income.
> >>
> >> Most distributions from a 401k are taxable income (but a portion of a
> distribution might not be). AFAIK, most administrators of a 401k will get
> the non-taxable money out first so only needing to cope with one mixed
> distribution and from then on entire distribution taxable. The statements
> you get for a 401k usually show what part (if any) of the contribution
> balance is post-tax.
> >>
> >> Most distributions from a Roth IRA are mixed, part taxable, part not. I
> do not know what administrators of a Roth do.  I don't know what statements
> from  a Roth look like.
> >>
> >> Michael D Novack
> >>
> > ROTH IRA’s use after tax contributions only, therefore any distribution
> from a ROTH IRA is non-taxable. There is nothing that is mixed. You can
> convert standard IRA’s into a ROTH IRA but you will have to pay taxes on
> any funds converted to the ROTH IRA. If you’re good at investing you can
> make a boatload of non-taxable money using a ROTH IRA.
> >
> > Ken Schneider
>
> It is generally true that a distribution from a Roth is not taxed unless
> the distribution happens before the recipient is 59 and 1/2 years old or
> if the account has been in existence for less than 5 years.  In that
> case, any earnings in the account are taxed plus I believe a penalty.
>
> In addition, a distribution from a "regular" (Traditional) IRA that
> contains both before and after tax money is prorated based on the
> percentage of each in the account.
>
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