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Quicken Tax Planner

Hawkins1

I input all the details of paychecks into Quicken. Within the detail, I have a a Roth 401k Contribution (after tax deduction) included which shows up as an "Account Transfer" to the 401k account via Fidelity. I was looking at the tax planner and for some reason it was showing the last couple bi-weekly paycheck 401k contributions as reducing taxable income. Even though nothing was changed with respect to the inputs throughout the year, only a few (4 or 5) of the last biweekly paychecks was showing up this way. In maybe a foolish series, I decided to mess with the "Transfers In" tax schedules where I set it to something and then set it to blank. Any option I chose now is showing as reductions of wages in Tax Planner (even though it shouldn't - ie Roth 401k). How do i get these to not show up as reductions of wages in the Tax Planner?

NOTE - I have also chosen to "Validate" the file. No fix. This seems to be a recurring problem where it shows up and then I mess with stuff and it fixes it for a while and then shows up again making no changes. Also note that I am aware that I can make the manual adjustments in Tax Planner - I just don't want to do that for this item as the settings/inputs seem to indicate this should be automatically configured properly.

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Mark1104

for the Roth - IRA item, what is the tax line item assigned to this category? (CNTL - C) .

what happens if you delete the tax line item (since there is no tax implications of a Roth IRA contribution).

Hawkins1

> @Mark1104 said:
> for the Roth - IRA item, what is the tax line item assigned to this category? (CNTL - C) .
>
> what happens if you delete the tax line item (since there is no tax implications of a Roth IRA contribution).

There is no tax line item here unless I am missing something. The 401k is set up as Tax Deferred (yes is checked in account settings). In the paycheck entry settings the line item is set up as "After Tax Deductions" and the category for the line item is a Transfer to the 401k. This is where the confusion comes. The odd part is only a handful of the transfers are being deducted in the tax planner. Ive been entering in paychecks all year without changing any settings and only a handful are being treated this way in tax planner.

Chris_QPW

There isn't any such thing in Quicken as a Roth 401K account. Most likely you have set it up as a regular 401K account and that is why you are seeing what you are seeing in the tax planner.

https://community.quicken.com/discussion/7905566/add-support-for-roth-401-k-s

Hawkins1

> @Chris_QPW said:
> There isn't any such thing in Quicken as a Roth 401K account. Most likely you have set it up as a regular 401K account and that is why you are seeing what you are seeing in the tax planner.
>
> https://community.quicken.com/discussion/7905566/add-support-for-roth-401-k-s

Regardless of how its set up why would it be working appropriately for years and only change on a couple weeks paycheck entries. As mentioned i have not changed any settings or inputs it just started appearing in tax planner for a couple weeks. Ill review the link you provided as well.

Chris_QPW

I have no idea why it would change. I will say about the only way it would handle the tax correctly is if it was setup as a Roth IRA, but that is probably not possible if you are downloading the transactions.

mshiggins

You can have after tax contributions to your 401(k) and Quicken should handle that just fine. To reduce your taxable income by the pre tax contribution amounts, Quicken uses a secret hidden Tax Impact of 401(k) account.

Perhaps a few of the after tax contributions got mixed up in the secret hidden Tax Impact of 401(k) account?

Chris_QPW

mshiggins said:

You can have after tax contributions to your 401(k) and Quicken should handle that just fine. To reduce your taxable income by the pre tax contribution amounts, Quicken uses a secret hidden Tax Impact of 401(k) account.

Perhaps a few of the after tax contributions got mixed up in the secret hidden Tax Impact of 401(k) account?

I doubt it would work right in the Lifetime Planner, but yes, I forgot that you could just have set the contribution to be an after tax contribution so that it is right in the tax planner.

mshiggins

Chris_QPW said:

mshiggins said:

You can have after tax contributions to your 401(k) and Quicken should handle that just fine. To reduce your taxable income by the pre tax contribution amounts, Quicken uses a secret hidden Tax Impact of 401(k) account.

Perhaps a few of the after tax contributions got mixed up in the secret hidden Tax Impact of 401(k) account?

I doubt it would work right in the Lifetime Planner, but yes, I forgot that you could just have set the contribution to be an after tax contribution so that it is right in the tax planner.

Agree. LTP is a whole nother issue.

Hawkins1

> @mshiggins said:
> Agree. LTP is a whole nother issue.

I dont use LTP (just Tax Planner) but i recall the tax impact thing. I did something with it like a year ago when i had a sinilar issue which you just reminded me of. I will need to mess around with it I guess