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March 19, 2021
Question

Managing a Retirement Plan Activity

  • March 19, 2021
  • 0 replies
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I'm looking for assistance with tracking and managing a retirement plan for my client. Should the retirement account be categorized as an asset or a bank? Also, how do I track distributions? My client is required to take rmd, and it automatically transfers into her checking account on a monthly basis. How do I post the funds transfer, and at the same time track the distributions?

 

Do I need to post a general journal entry in addition to the funds transfer?  I created a "Retirement Distribution" Income account, but not sure what the offsetting account should be. Also, how would I track the tax withholding?