When will Quicken add Roth IRA and Roth 401(k) account type and related tasks functionality?

The days of pre-tax 401(k) retirement account only are long gone. Roth IRAs and Roth 401(K)s are quickly becoming, if they aren't already, the most common types of retirement accounts. It really is shocking that a widely used personal finance software has not incorporated these account types since Roth IRAs have been available since 1997 and Roth 401(k)s since 2006. These account types have very different rules and tracking requirements than a pre-tax retirement account that requires different Quicken functionality for accurate tracking. Quicken developers ... Are you actively working on updating the program to include all things Roth?

Best Answer

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Answer ✓
    To add a Roth IRA in Quicken, go to Tools > Add account and select IRA. Go through several questions and eventually it asks whose account it is and what type of IRA it is. Roth is one of the choices. If you have already set the account up as a Traditional IRA, you can change the account type in Quicken. This is just to correct the account type and is not the same as a Roth conversion.

    Roth 401(k)s are not supported but there are some rather clumsy workarounds. Part of the issue is that in many cases the Roth and traditional 401(k)s are wrapped into one account at the administrator and the Roth information is not downloaded separately. For further information on that topic, see this discussion
    https://community.quicken.com/discussion/7905566/add-support-for-roth-401-k-s/p1

    and add your vote to the Idea.
    QWin Premier subscription

Answers

  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    Roth IRAs already exist.

    Quicken user since version 2 for DOS, now using QWin Premier Subscription (US) on Win10 Pro.
  • splasher
    splasher SuperUser ✭✭✭✭✭
    Quicken has "Roth IRA" in the selection list for the type of account.  So, I'm not sure where you are getting your information.


    -splasher  using Q continuously since 1996 -  Subscription Quicken  -  Win11
    -Questions? Check out the  Quicken Windows FAQ list
  • DianeB
    DianeB Member ✭✭
    edited January 4
    @Rocket J Squirrel and @splasher What version of Quicken are you using? I have used Deluxe for 10+ years and the option is not available (snip below). I even tested the concept after your responses using checking, 401(k) and other investment in the account setup screen and Roth was still not an option on the account details screen. Furthermore, the ability to commingle pretax 401(k) contributions, matching 401(k) contributions and post tax 401(k) contributions is needed. I know this information is available from the account provider but not having the ability to break it out creates challenges with reconciliation, tax planner, and retirement planner.
  • splasher
    splasher SuperUser ✭✭✭✭✭
    Deluxe is the Edition, version is the "year".  What is shown when you do Help->About Quicken?
    -splasher  using Q continuously since 1996 -  Subscription Quicken  -  Win11
    -Questions? Check out the  Quicken Windows FAQ list
  • DianeB
    DianeB Member ✭✭
    @splasher My help screen shows Deluxe, Version R45.21.
  • Mark1104
    Mark1104 Member ✭✭✭✭
    @dianne8 - do the options change if you answer 'no' to tax deferred?  a Roth is NOT tax deferred. 
  • DianeB
    DianeB Member ✭✭
    @Mark1104 No, the options do not change. Tax deferred would be correct though as the contributions are post-tax but the earnings are tax deferred. Disclaimer ... I am not a tax advisor but reasonably knowledgeable :smile:
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Answer ✓
    To add a Roth IRA in Quicken, go to Tools > Add account and select IRA. Go through several questions and eventually it asks whose account it is and what type of IRA it is. Roth is one of the choices. If you have already set the account up as a Traditional IRA, you can change the account type in Quicken. This is just to correct the account type and is not the same as a Roth conversion.

    Roth 401(k)s are not supported but there are some rather clumsy workarounds. Part of the issue is that in many cases the Roth and traditional 401(k)s are wrapped into one account at the administrator and the Roth information is not downloaded separately. For further information on that topic, see this discussion
    https://community.quicken.com/discussion/7905566/add-support-for-roth-401-k-s/p1

    and add your vote to the Idea.
    QWin Premier subscription
  • DianeB
    DianeB Member ✭✭
    @Jim_Harman You are exactly right. We do have Roth accounts outside of 401(k) and I was able to set those up no problem. It just seems so simple for a developer much smarter than me to add functionality to commingle pre-tax 401(k) contributions, employer match contributions and post-tax Roth 401(k) contributions. There are so many nuances with how all three are treated at distribution based on how the funds were contributed, not even getting into the more complicated nuances if conversions are made. I think I am expecting Quicken to do more than designed and will need to find a better option for comprehensive retirement account data. I will input these comments to the thread you mentioned.
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    One simplifying factor is that by the time you start taking distributions from your 401(k) you will probably want to roll over the 401(k) to two IRAs - one traditional and one Roth. Only the traditional IRA will have RMDs. I have just gone through this rollover process and it went very smoothly.

    Some of the rules around IRA and 401(k) distributions have changed with the recently passed Secure 2.0 Act, which was rolled into the year end omnibus spending bill. Consult your tax advisor for more info.
    QWin Premier subscription
  • DianeB
    DianeB Member ✭✭
    @Jim_Harman Agree on all points. I am not nearing retirement, just trying to keep the data accurate along the way to assist with that consulting with a tax advisor when the time comes :smiley:
  • > @Jim_Harman said:
    > To add a Roth IRA in Quicken, go to Tools > Add account and select IRA. Go through several questions and eventually it asks whose account it is and what type of IRA it is. Roth is one of the choices. If you have already set the account up as a Traditional IRA, you can change the account type in Quicken. This is just to correct the account type and is not the same as a Roth conversion.
    >
    > Roth 401(k)s are not supported but there are some rather clumsy workarounds. Part of the issue is that in many cases the Roth and traditional 401(k)s are wrapped into one account at the administrator and the Roth information is not downloaded separately. For further information on that topic, see this discussion
    > https://community.quicken.com/discussion/7905566/add-support-for-roth-401-k-s/p1
    >
    > and add your vote to the Idea.

    The Roth IRA account in Quicken is not handled correctly. The account should be a tax free and RMD is not required . Hence, the Lifetime Planner is not calculated property for Roth types account. Quicken should be updated for the Roth type account correctly.....