Bookkeeping Account for Solo Roth 401K Contributions?

I am not sure if it is appropriate to ask here since this isn’t an IRA I’m talking about.

I just setup a Solo Roth 401K plan with Vanguard, for my single participant sole proprietorship.

I understand I should be linking my business checking account instead of personal checking account since the contribution is made by the employer login on Vanguard.

Before the retirement account, the way I got money out of my business books was to DEBIT “Owner’s Draw” equity account and CREDIT my business checking account — transferring the money from business checking to personal checking.

So what account should I use since I don’t want to do an Owner’s Draw anymore? — I want to put every cent I can into the 401k. Should I create a new equity account called “Roth 401k Contributions” ? I’d then DEBIT that account and CREDIT business checking for each contribution — transferring the contribution from business checking to Vanguard Roth Solo 401k account.



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