[GNC] IRA/401K income detection

[Stan Brown]

On 2022-03-16 15:09, D. via gnucash-user wrote:
> when Joe Retiree takes money from their IRA, the IRS considers it income, and taxes it accordingly. But when Joe tries to enter the transfer from their IRA to their checking account in GnuCash,  it doesn't get treated as income

-- 
Stan Brown
Tehachapi, CA, USA
https://BrownMath.com

Because it _isn't_. (The tax code's definition of income is not the same
as an accountant's.)

It is a debit to the asset of Cash/Banks, and a credit to the asset of
investments.

As several people have said, this can be record as the above simple
2-split transaction, in which case taxes are tidied up later when the
income tax is paid, or as a four-way split:

Debit:   Assets:Cash/Banks
Credit:  Assets:IRA
Credit:  Liability:Taxes payable
Debit:   Expenses:Income tax

-- 
Stan Brown
Tehachapi, CA, USA
https://BrownMath.com