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Variable RSP contributions

I am salaried, however, due to the nature of our business, I am paid OT and DT. My contribution amount is based on my gross pay and whatever percentage I elect to contribute, and has a company match of 75% (can't beat free money).

When setting up the IRA in Quicken, I see where I can enter a fixed amount to be deducted from my paycheck and a fixed employer amount, but RARELY are two of my paychecks the same. Why can't Quicken use a percentage of Gross Income as the employee, and then a percentage of that for Employer Matching? I wouldn't think that would be a hard calculation to implement. Besides that, without a feature such as this, I have to manually review all the statements from my IRA provider and manually enter the Employer contributions. The downloads from the site do not seem to include those in the data, but does include my contributions and the shares purchases, and all other transactions. This makes it somewhat laborious to try to track an IRA in Quicken.

Comments

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    That would be a nice improvement to the Paycheck Wizard - allow the user to enter  401(k) contributions and employer match amounts as either set amounts or a percentage of gross pay.

    This would be helpful but would not work for every situation, for example when the employer match has a cap at a certain percentage.

    Perhaps one of the moderators can convert this to an Idea post
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  • volvogirl
    volvogirl SuperUser ✭✭✭✭
    By the way, that sounds like a 401K and not an IRA.  IRA you contribute to outside of work and without employer match.
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Or is this RRSP, which is the Canadian version of an IRA? But that would not have an employer match either I think.
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  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    These accounts are available for all individuals (like a US IRA or Keogh, etc.) and also can be setup by an employer, to allow for employer contributions (like SEP-IRAs and "qualified plans" plans in US).

    Frankx


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  • Old_Paint
    Old_Paint Member ✭✭
    > @volvogirl said:
    > By the way, that sounds like a 401K and not an IRA.  IRA you contribute to outside of work and without employer match.

    Yup, it's 401K, so I mislabeled it. I had IRA on the brain because I just rolled several old 401K's into one large IRA.

    But the general issue is that there is always a cash imbalance that accumulates because the employer match is not properly accounted for when I enter the deduction from my paycheck. I can indeed put an Employer Matching amount in it, but that amount is different nearly every paycheck, unless I just work a standard 80 hours. The matching is 75% up to 12% of my pay. I can contribute more if I want, but that just gives the company more of my money to play with. A standard 40H work week ain't gonna happen in the industrial service business on a frequent basis. There's always something broken at a bad time in urgent need of fixing..

    Besides all that, the Employer Matching amount modifies the total value of the paycheck, which is EXACTLY what I DON'T want it to do because that number isn't reported on my pay statement. Doesn't need to be for tax purposes, only my contribution does. I wouldn't think it would be hard to put that kind of calculation into the transfers so that the Employer matching part is added at the same time the employee contribution is transferred from the pay advice. If I have to manually manage the 401K constantly, I can't see the benefit of the transfer function from the paycheck to the 401K account data. Might as well just let the downloaded data lead me blindly into an approximated retirement.

    The good news is that 401K's will be moot to me in the near future, making Quicken's shortcomings moot as well.
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