[GNC] Tax deferred account transfers suggestion

Tue Apr 6 21:43:39 EDT 2021

OK, the existence of over limit post-tax contributions in a 401K makes it impossibly muddy for any accounting program, but this sort of contribution is pretty infrequent.  The virtue of a 401K is tax deferral.  If a tax report tagged transfers from such a mixed account as taxable income, the user with post-tax contributions can discount that information, but the rest of us normal, sane people (who put our excess in a roth ira/401k for tax free growth) would be well served to see that as income on the tax report.

-----Original Message-----
From: David Carlson <david.carlson.417 at gmail.com>
To: David G. Pickett <dgpickett at aol.com>
Cc: gnucash-user at gnucash.org <gnucash-user at gnucash.org>
Sent: Mon, Apr 5, 2021 8:57 pm
Subject: Re: [GNC] Tax deferred account transfers suggestion

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.
You can assign wage income to W-2's, or whatever.

Isn't that what you are looking for?

On Mon, Apr 5, 2021 at 5:11 PM David G. Pickett via gnucash-user <gnucash-user at gnucash.org> wrote:

 Moving it twice to tag a transfer is not cool!
    On Saturday, April 3, 2021, 07:13:28 PM EDT, David G. Pickett <dgpickett at aol.com> wrote:  

  Certainly the marking could be by subtree placement rather than a boolean at the account level, assuming we all don’t mind rearranging our accounts into deferrred pretax and normal post tax subtrees.
    On Saturday, April 3, 2021, 02:38:43 PM EDT, David Carlson <david.carlson.417 at gmail.com> wrote:  

 It seems that nearly all these replies ignore the fact that that the tax report has a feature that allows the user to associate certain accounts with certain US tax forms.  It even allows association with specific copies of some forms like 1099s.  
This is on top of user creativity in account naming or COA structure. 
I think the OP was referring to that report in his question. 
Depending on which itch needs scratching, there are many solutions available. 
On Sat, Apr 3, 2021, 12:11 PM David G. Pickett <dgpickett at aol.com> wrote:

Transfers can be made in and out of tax deferred accounts.  Assigned is not a verb that triggers any GNUCash functionality I am aware of.  I am suggesting that:   
   - US Income Tax Deferred accounts have an attribute that identifies them.
   - When money is put transferred from not deferred or cash in, it is a taxable income deduction on the tax report.
   - When it is taken out to an account not tax deferred or cash, it is retirement income on the tax report.
   - If money or shares are moved from one tax deferred account to another, it is a rollover and should be ignored by the tax report.
The implications for US state tax and other nations vary.

One weakness of GNUCash and some similar software is that transfers that are tax affecting (or otherwise categorical) are not allowed to have a category like expenses and income in cash flow.  If I was tracking multiple customer accounts, for instance, cash movements between them should be labeled: corrections, trading, gift, etc., but perhaps that is beyond the scope of GNUCash.

-----Original Message-----
From: David Carlson <david.carlson.417 at gmail.com>
To: David G. Pickett <dgpickett at aol.com>
Cc: gnucash-user at gnucash.org <gnucash-user at gnucash.org>
Sent: Fri, Apr 2, 2021 2:53 pm
Subject: Re: [GNC] Tax deferred account transfers suggestion

I am not able to confirm right now but IIRC it is already possible to assign transfers from tax advantaged accounts as well as other accounts that trigger 1099s in the US to the respective forms in the tax report.

On Fri, Apr 2, 2021 at 1:45 PM David G. Pickett via gnucash-user <gnucash-user at gnucash.org> wrote:

It'd be nice if the transfers from tax deferred accounts (401k, IRA) to not tax deferred showed as taxable income on the tax report.  Reverse transfers might also be listed as tax deductions.
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