Re: [GNC] "Realized Gains" in 401(k)

Hi Adam,

We track distributions from traditional retirement accounts as deferred 
income by adding a pair of balanced splits to the transfer transaction.

For example:

Assets:Banking:Checking		100.00
Assets:Investing:IRA			100.00
Income:Deferred			100.00
Income:Deferred:IRA			100.00

Income:Deferred:IRA is flagged as "Tax Related" with the "F1099-R  IRA 
total dist - taxable" TXF category.


Regards,

Sherlock

On 6/11/26 1:20 AM, Adam H. Kerman wrote:
> 12:36am -0000 06/11/26 David T. via gnucash-user <[email protected]>...:
> 
>> 1) Almost any sale of shares will result in gains or losses, and you should
>> track them as such. Since they have no effect on taxes, I shunt mine all to
>> Income:Realized Gains:Untaxed:Untaxed LT Gains. Recent discussions here
>> regarding distributions suggest that there may be situations where the
>> gains in a retirement account need to be tracked and reported separately,
>> but as I have not yet crossed this threshold, I cannot comment. . . .
> 
> I guess a distinction could be made between untaxed long-term and short-term
> gains. As far as the OP's specific question, for any management fee expense
> not tied to a specific sale of securities, offset it against interest.
> 
> For tax law compliance, I am not aware of a situation in which a
> distribution from retirement funds could be a long-term capital gain and not
> ordinary income. I'd be grateful for an example if I'm getting it wrong.
> 
>> On June 11, 2026 5:52:21 AM GMT+05:30, Sherlock <[email protected]> wrote:
>>> Hi Clint,
>>>
>>> Generally, there is no need to track lots in a 401(k) account. Otherwise, you should treat the "Realize Gain/Loss" as non-taxable capital gain income.  For example, Income:Cap. Gain (long):Fidelity 401K:Fund A
>>>
>>> Regarding the "microscopic amount of cash", if this is a change in the value of a holding, this could be a rounding difference due to price accuracy or adjustment.  If there is a cash transaction, I think Fidelity should be providing the reason.
>>>
>>> Regards,
>>>
>>> Sherlock
>>>
>>> On 6/10/26 1:36 PM, Clint Chaplin wrote:
>>>> This has absolutely nothing to do with using GnuCash itself, but rather
>>>> what accounts/structure I should be using, so you are perfectly free to
>>>> tell me this is the wrong place....
>>>>
>>>> I have a 401(k) at Fidelity, and periodically an administrative fee or
>>>> bookkeeping fee is taken from the accounts.  The funds for the fees are
>>>> raised by selling off microscopic amounts of the mutual funds the 401(k) is
>>>> invested in.  I do understand that those sales are not considered
>>>> "disbursements" by the IRS, so no tax implications there.  Also, the cash
>>>> that is raised by the sales I record as an expense, just to keep track of
>>>> it.
>>>>
>>>> The really fun part comes when I scrub the accounts and the "Orphaned
>>>> Gains" are generated, which seem to represent the "realized gains/loss" of
>>>> the microscopic amount of mutual funds that were sold.  What the heck do I
>>>> do with them?  They are not cash income in the sense that I would think of
>>>> it, but they don't seem to be equity, either.
>>>>
>>>> And, if that seems easy to you (it isn't to me), every so often Fidelity
>>>> will take some microscopic amount of cash from one of the 401(k) accounts,
>>>> but not sell any of the mutual fund to cover the expense. (we're talking
>>>> amounts up to $0.05).  Fidelity seems to have conjured the cash out of
>>>> nothing, but I still would like to record it: the expense account to use
>>>> seems pretty obvious to me, but what "income" account should I use?
>>>> "Magic"?

_______________________________________________
gnucash-user mailing list
[email protected]
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.