Recording income tax withheld


H

HH

Sorry for this basic question. I'm new to the group. How do I handle income
tax withheld when recording a withdrawal from an IRA account?

Harlan
 
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R

R. C. White

Hi, Harlan.

Rather than type another diatribe, may I suggest you read my post in the
recent thread started by Smaster121 on 12/23/04, Subject: Federal Tax
Refunds. That conversation was not about an IRA, but we talked about how to
treat taxes withheld, estimated taxes paid, and the refunds of overpayments.
While the details are different, the basic question is the same. If you
still have questions, please post back.

RC
 
F

Fred Smith

Post it to the same category as tax withheld from your paycheque (sorry,
paycheck).
 
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K

Ken G

Harlan, I agree with Fred. In Canada we call them RRSP's, but the same sort
of thing. When I withdraw anything from them I do the same sort of split as
my paycheque/paycheck.

In the split transaction that brings the proceeds into the relevant bank
account, the withholding tax goes into my Income Tax category and the
balance goes into an appropriate Income category. That transaction is the
offsetting transaction to balance with the withdrawal from the IRA/RRSP
account.

...ken...
 

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