How to handle Fidelity 401k account with before and after tax sources?

mikek753b
mikek753b Member ✭✭
hi,

I have 401k at Fidelity, where I contribute before taxes (normal 401k) and after taxes (converted to Roth)
the issue is that this is 1 account as 401k, that Quicken downloads all transactions from.
Some of those transactions are before tax and some are after tax.
Quicken sets tax awareness at an account level only, as result all after tax transactions are seen in Quicken as before tax, which is incorrect and leads to incorrect reports and planning.
On Fidelity side under 401k account all are split to the sources, each sets tax awareness, each Fidelity transaction also has the source value that tells what tax wise transaction is.

How to make quicken to use that "source" info to split transactions to appropriate way to make reports and planning to work correctly?

how do you address similar issue?

thank you
Best Regards

Answers

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Unfortunately Quicken does not currently support separate tracking of Roth and Traditional 401(k) balances.

    However if you are using the Paycheck Wizard you can record Roth contributions by setting up an entry for them in the After Tax Deductions section. 

    If you think Quicken should make improvements in this area, please review and vote on this Idea post.
    https://community.quicken.com/discussion/7905566/add-support-for-roth-401-k-s
    QWin Premier subscription
  • mikek753b
    mikek753b Member ✭✭
    hello Jim,

    thank you for the reply and point me to your request
    this is exactly what I need and I've asked for this to have separation by the Source for some time

    yes, I vote for both, while there are just 12 up votes ....
    what can we do to push this feature request for the implementation?
    as looks like we are minority of quicken Users, otherwise we should see above 100s votes IMHO.

    yes, I have appropriate split in the Paycheck, as result I have "fake" extra account for after tax contribution, which just accumulates money.
    I was planning to manually move all Roth transactions from 401k to this account, but it gets a bit messy as I have are extra Sources in my 401k - I have 5 sources
    yes, there is just 1 for after tax / Roth the rest 4 are for before tax wise

    to address this issue I set contributions to use one funds for before and another funds for after, while I have some leftover from initial, where the same funds were bought in both before and after tax and close to impossible on practical side to track this in the quicken.
    yes, Fidelity history shows all needed details, but it will take huge effort to make manual changes on quicken side to do those separations per each transaction to split to before and after tax.

    I think you understand what I'm talking about

    how do you address this? if anyhow it can be addressed?

    thanks
    Best Regards
  • NotACPA
    NotACPA SuperUser ✭✭✭✭
    Maybe I'm missing something, but ....
    If you have a Pre-Tax 401k AND a ROTH 401k, why aren't they separate accounts in Q?
    The Paycheck Wizard can easily handle this scenario, the Post-tax transfer is simply another post-tax deduction.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • mikek753b
    mikek753b Member ✭✭
    hi > @NotACPA said:
    > Maybe I'm missing something, but ....If you have a Pre-Tax 401k AND a ROTH 401k, why aren't they separate accounts in Q?The Paycheck Wizard can easily handle this scenario, the Post-tax transfer is simply another post-tax deduction.

    the issue is that it's ONE 401k account at Fidelity side.
    One account with many Sources, one for after tax and another for before tax
    I have 5 sources in this single 401k account and quicken sees it as single account regardless the source info

    yes, in the paycheck I have this separation to fake Roth-cash account that has 0 transactions from Fidelity

    Quicken downloads all to before tax account, so there is the request to check for the Source in the transaction and put the transaction to appropriate account in quicken

    unless you have 401k with multi Sources it's not visible to you and might not be easy to understand

    while thank you for the help
    Best Regards
  • NotACPA
    NotACPA SuperUser ✭✭✭✭
    How about contacting Fidelity and asking them to split the account by taxability?  I.E., by what you're calling "Source".
    They might.  They might not.  But if they will ... it's an easy fix on your part.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • mikek753b
    mikek753b Member ✭✭
    > @NotACPA said:
    > How about contacting Fidelity and asking them to split the account by taxability?  I.E., by what you're calling "Source".They might.  They might not.  But if they will ... it's an easy fix on your part.

    yes, I did several times over several past years - answer has been NO. Fidelity has no incentive to accommodate small Quicken company.
    I, as well as other 401k participants , have no power over Fidelity ether IMHO
    I have no choice to select 401k provider, maybe some one does, I don't know

    it's 1 account of the 401k plan, and at Fidelity it shows all info correctly with spit per the Source
    actually it's opposite, where Fidelity wants to integrate other my accounts into single view

    yes, it applies to Fidelity 401k only
    any personal accounts at Fidelity are ok, as one per tax type, there are no issues there.

    this screenshot is what I have in the 401k

    I hope I explained this to some level
    Best Regards
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Other 401(k) providers, including T Rowe Price, handle Roth 401(k) accounts the same way Fidelity does. That is why I created the Idea post referenced above.
    QWin Premier subscription
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