|
Posted by JM on October 4, 2006, 10:01 am
Please log in for more thread options
Sam wrote:
> So how would you recommend setting that up in quicken, that is how
> would you set it up so that the employers contribution is tracked in an
> account separate from the employee contribution and how would you
> catagorize each contribution? I just started using quicken this weekend
> so I apologize if it is obvious how to do this.
>
> Thanks
>
>
> > Sam -
> >
> > This is very interesting. I didn't consider the employer's contribution in
> > the Roth 401(K) as having different tax consequences as your contribution.
> > But look at:
> > http://www.financial-planning.com/pubs/fpi/20050214101.html . It says
> > "There is, however, a twist to the Roth 401(k)s. Employees will place an
> > after-tax amount in contributions to the Roth 401(k). But the employer match
> > for the contribution--up to 3% of income at most companies--will go into a
> > separate regular 401(k) account. This would enable the company to deduct its
> > cumulative match contributions up front from its corporate income taxes."
> > This seems to me to indicate that no only will you want to track them
> > separately, but indeed you may very well HAVE TO since they'll be in
> > different accounts?
> >
> > -----------------
> > Regards -
> >
> > - Andrew
How does the FI report the holdings to you? - do they separate the
holdings/earnings or do they just combine them?
Do you download account activity? - or enter it manually from
statements?
Answers to these questions will help in devising a tracking strategy -
it's going to be a work-around since QW does not [yet?] offer this type
of 401k account.
My initial inclination would be to set up two separate accounts - both
tax-deferred brokerage accounts. Would not use the '401k' account type
in order to retain full flexibility - you can always convert sometime
down the road if appropriate or desireable - buts it is a one way step
- you can not reverse it.
As an aside, FWIW, my 401k was established as a tax-deferred brokerage
account long before QW offered the specific 401k account type - have
not changed it and have no problems tracking or with tax implications.
Seems this is an example of where sub-accounts would be a very useful
feature.
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap