Paycheck should allow different accounts for Employee and Employer contributions

My current employer's 401k separates employee and employer contributions when reporting them. I created another account in Quicken for employer contributions to accurately track them. It would be great if I could specify the account for employer contributions in the paycheck instead of having it go to the same account used for employee contributions.
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  • vivman1107
    vivman1107 Member ✭✭
    This becomes more important as my employer allows for Roth 401k contributions. Employer contributions are always pre-tax so it is important to differentiate employer and employee contributions.
  • Cooper's Dad
    Cooper's Dad Member ✭✭
    Quicken does this, though it's not easy to recognize. When entering or modifying paycheck splits, the edit button to the right of the pre-tax deduction for 401k deferrals opens a window for two dollar amounts to enter, one for employee deferral and the other for employer match/contibution.
  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    Quicken does this, though it's not easy to recognize. When entering or modifying paycheck splits, the edit button to the right of the pre-tax deduction for 401k deferrals opens a window for two dollar amounts to enter, one for employee deferral and the other for employer match/contibution.
    Adding what @Cooper's Dad said above, it is important to note that both the employee and employer contributions will go to the same 401K account, and that might not be what @vivman1107 wants (based on the description given, but that might be the wrong idea to start with).

    But in fact I can't see how any 401K would work like that.  I have never heard of a 401K plan that keeps the actual money/securities separate.  Even though they report the contributions separately all the contributions go into the same account.

    Quicken does have a way to report this, it isn't obvious because Quicken's paycheck reminder does some thing "hidden" that you won't seen just looking at it.  If you right click on a paycheck in your account register and select to create a reminder it will change it into a regular reminder, so you can see what it does. Here is an example.


    What you see in line #8 they do a transfer to the 401K, that gets the money there. But then in line #9 they offset it with equal but opposite amount going into a category.  It is this category that the tax reports will use to let you know how much the employer contributed.
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  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
    P.S. If you REALLY want to create an extra account and such, so you can see the paycheck reminder is really just an income reminder hidden by a dialog interface. So you can just use an income reminder to do whatever you like.
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  • J_Mike
    J_Mike SuperUser ✭✭✭✭✭
    Chris_QPW said:
    But in fact I can't see how any 401K would work like that.  I have never heard of a 401K plan that keeps the actual money/securities separate.  Even though they report the contributions separately all the contributions go into the same account.

    It appears the OP has a Roth 401k. My understanding is that a Roth 401k is effectively two separate accounts - or two sub-accounts).
    • The Roth portion is comprised of the employee after-tax contributions. Upon retirement, distributions are non-taxable and handled according yo the Roth rules - similar to a Roth IRA.
    • The employer pre-tax contributions are treated separately - same as a Traditional 401k. Distributions are taxable and subject to the rules of a Traditional 401k (RMD;s , etc).
    My conclusion is that there is a need for two separate accounts, or sub accounts, when tracking a Roth 401k.

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  • vivman1107
    vivman1107 Member ✭✭
    > @J_Mike said:
    > It appears the OP has a Roth 401k. My understanding is that a Roth 401k is effectively two separate accounts - or two sub-accounts).* The Roth portion is comprised of the employee after-tax contributions. Upon retirement, distributions are non-taxable and handled according yo the Roth rules - similar to a Roth IRA.
    > * The employer pre-tax contributions are treated separately - same as a Traditional 401k. Distributions are taxable and subject to the rules of a Traditional 401k (RMD;s , etc).
    >
    > My conclusion is that there is a need for two separate accounts, or sub accounts, when tracking a Roth 401k.

    J_Mike has it right. I forgot to add it to the OP but made a quick follow-up post. I would like to be able to track the contributions separately. The paycheck dialog would just have to allow choosing of a different account for employer contributions like it does for employee contributions.
  • J_Mike
    J_Mike SuperUser ✭✭✭✭✭
    edited January 5
    I would like to be able to track the contributions separately. The paycheck dialog would just have to allow choosing of a different account for employer contributions like it does for employee contributions.
    Given the current functionality - I would suggest the following:

    Record the Employee contribution separately under After-tax Deduction - indicating a transfer to the desired account.
    Record the Employer contribution under the Pre-Tax Deduction - 401k - with the appropriate account. Leave the Employee Contribution as $0.00.

    The downside of this is that I believe you will get a $0.00 transfer to the pre-tax account - representing a $0.00 Employee Contribution. A bit of an annoyance!! 

    QWin & QMac (Deluxe) Subscription
    Quicken user since 1991

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