[GNC] Deferred Income << the general case is "imputed income"

[Michael or Penny Novack]

On 1/15/2024 9:47 PM, Jediator wrote:
> I am not an accountant, so please excuse my ignorance.  I was 
> wondering is it really necessary to create a separate deferred income 
> account when you could just do a transaction report on your IRA 
> account to see how much distribution you had in a year or a month?  -- JC

Yes of course, and you will get a 1099 for the distribution so you would 
be able to do your taxes using that.

But we are keeping books. The situation is different for those of us 
where money is still coming in to our IRA's or 401k's. Think for just a 
moment how you would be recording your salary as it came in. PART of 
what you are getting, both your contribution and the employer's match is 
NOT going to be reflected in your current taxable income. It is deferred 
income. You presumably DO want that reflected as adding to your net worth.

For those of us at the other end, those distributions might be a 
significant fraction of our (actual) income. If you aren't having the 
distribution showing up as (part of) income, you are likely to have 
expenses totaling more than income. You presumably do want a realistic 
Statement of Revenues and Expenses (P&L)

Michael D Novack