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IRA Withdrawals

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gcash
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IRA Withdrawals

Sat Jan 12, 2013 9:15 pm
I think this has the same problem as the Net Worth calculation.

Money is transferred out of an IRA into another account, yet it should also be recorded as Retirement Income : IRA Distributions.

And I guess it is not possible to have one entry go to 2 different places.

Ah well.
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watchstar
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Re: IRA Withdrawals

Sat Mar 16, 2013 1:55 am
I "solved" this issue by creating an expense account (category) for the IRA withdrawl. This was immediatly followed by a deposit into the receiving account that was recorded as a income account (category) transaction. I din't find a way to do the transaction as one step.
lagunacreek
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Re: IRA Withdrawals

Tue Aug 11, 2020 3:29 pm
An IRA is a challenge. You cannot do a straight transfer since you need to debit the IRA and then credit the transfer to another asset account.
I solved this by creating a Cash account for each IRA.
When I transfer money between the IRA and my Savings I need to create two entries:
1- A debit from the IRA. Since my brokerage shows the net debit I need to create an entry showing the total debit with a offsetting credit for the taxes paid.
2- A credit to the savings account for the whole amount with subtractions for taxes.
I can then create income and expenditure based on all my accounts except the IRAs and they work out so, for example I can pull a tax report with ALL my income!
I can then do a net worth report that includes the account balances from all my accounts, including the IRAs.
This works well since this program allows you to copy old entries easily, so the duplicate entries are easy.

The problem is that income in the IRA is unrealized income until you take a distribution: the distribution must be moved out of the IRA. But the distribution in the IRA shows as a debit, and while the transfer is a credit to the savings account it is sent to, the transfer does not show as income, and it was a debit in the IRA, so an income/expenditure report cannot show the IRA income/taxes. This additionally complicated by the fact I have a managed account and I don't want to continually download all the transactions and movements of money internal to the IRA.

If anyone has a better way that allows a single entry system let me know.


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