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Removing unvested employer match contributions from my retirement account

Katherine Jones

Using Quicken for Windows Premier 2017.

I was employed with a company where I contributed 3% to a retirement account and the employer (matched) contributed 3%. With each paycheck it showed under Pre-tax deductions my 3% into the Retirement Account and it also showed the Employer Match of their 3%.

I have left that company and 0% of the employer match is vested. My contributions totaled a relatively small amount in total and I have elected to take the whole amount as a taxable distribution.

I see that the Retirement Account shows a balance that includes the unvested employer matches. Outside of going back and editing each paycheck recorded in the system and changing the Employer Match to $0, after recording an entry for the distribution event, what can I do so that the Retirement Account balance is $0

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Accepted answers

Bob_L

If there are shares left then I would sell them. Then reconcile the account but be sure to show the end cash balance as zero. Then Quicken should create an adjustment for the difference. Backup first.

All comments

Bob_L

Katherine Jones

Thank you Bob.

Because there were under 20 paychecks, I actually edited each paycheck, changing the Employer Match field to zero. I did this in part because there are no 'shares' involved, no specific Security involved. That is, the employer was a state government organization and the retirement funds were not managed by a company such as Fidelity or the like.

When I cashed out, there was an increase in the value. For example I contributed $500 and the total value at the time of the Distribution was $590. I ended up creating an "Update Cash Balance" record within the Investment Account to account for the increase, but I suspect that this is not the best way to handle this. Do you have any thoughts on a better way to record this increase?

Bob_L

Not really. Seems like the distribution is what matters.