On 2022-03-10 11:08, David G. Pickett via gnucash-user wrote: > When I move money from an IRA or 401K account to my bank account and the tax man, that is all a taxable distribution, but GNUCash mostly sees a transfer. How do I capture the income?
> On 3/10/2022 2:15 PM, Stan Brown wrote: >> The same is true of making a withdrawal from your IRA. Despite the fact >> that the tax laws treat it as income, it is not income. On 2022-03-10 14:47, Michael or Penny Novack wrote: > It is FAR more complex than that. It is NOT a "simple transfer" because > the IRA or 401K was not a simple asset. It is a "tax deferred" asset > (income you received earlier but that was (temporarily) not considered > income for tax purposes. It is becoming income NOW (when you take a > distribution) Well, yes and no. Of course, a tax liability is almost certainly created by a withdrawal from a traditional IRA. But how many people will actually book that tax liability then? David Pickett's question did not suggest a lot of sophistication about accounting, and therefore I suspect he will not want to get into accruing tax liability, but rather will record income tax as an expense when he actually pays it. (_I_ record a tax liability when I make an IRA withdrawal, but I imagine I'm in the minority on that.) -- Stan Brown Tehachapi, CA, USA https://BrownMath.com _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
