[GNC] How to treat IRA distribution as income

[R Losey]

Yes, I just briefly alluded to it once; it is an important point... thanks


On Fri, Dec 27, 2024 at 3:22 PM Michael or Penny Novack via gnucash-user <
gnucash-user at gnucash.org> wrote:

> On 12/27/2024 1:24 PM, R Losey wrote:
> > I absolutely agree with you that using a dummy account doesn't "feel
> > right"... when I have situations that I don't fully understand, I run
> into
> > that a lot.
> >
> > I can think of three options:
> >
> In asking this question (what to do NOW, taking money out) you leaving
> out a very important detail, how did you account for the money when it
> went in?
>
> For example, did you include this money as part of income THEN. If so
> how? Just "non-taxable income". As "deferred income". How about gains in
> the account each year? Think about what an IRA/401k actually is, a
> method of DEFERRING income (and income tax) to a point later in life
> when presumably you are no longer having current salary income.
>
> If you did NOT include the deferred income (and any employer matching)
> as income back then, it is simply income now. BUT -- because we often
> want our accounting system to show how well off we are (or to compare
> opportunities) we might well have been tracking "deferred" and
> "conditional" amounts*. Well in that case the price is more complex
> bookkeeping now that money is coming out.
>
> Michael D Novack
>
> * Conditional, because although an employer might make "matching"
> contributions or offer "split dollar" whether you get to keep those
> amounts depends on CONDITIONS (will you remain with that employer till
> "vested", etc). Things like "split dollar" involve decisions WHEN you
> leave based on your health at this future date.
>
>
> _______________________________________________
> gnucash-user mailing list
> gnucash-user at gnucash.org
> To update your subscription preferences or to unsubscribe:
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>


-- 
_________________________________
Richard Losey
rlosey at gmail.com
Micah 6:8