Roth 401k option doesn't allow for employer contribution
R49 offers paycheck support for Roth 401k contributions but there's no ability to include employer match amount - don't understand how this would be added without it. I had been doing this all manually previously by adding the employer amt to gross pay and then manually deducting it from post tax deductions. What's the point if I still have to do all of this?
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Hi @Seth , I heard back in regard to this and I will send you a private message. You can view private messages at the top of the page. Select the envelope icon to see the message shortly. Thanks!
I was able to get some information from someone on the Windows team.
An Employer contribution is always traditional (i.e., Pre-Tax contribution). There is no option to make an employer contribution Roth 401(k) (See for example this article). If the employer does provide a match it is added to a separate, pre-tax, Traditional 401(k) account (see this).
So, employer contribution needs to be added in ‘Pre-Tax’ deduction section of the Paycheck.
Hope this helps.0
"An Employer contribution is always traditional (i.e., Pre-Tax contribution). There is no option to make an employer contribution Roth 401(k)"
This used to be true but changed with Secure 2.0. See #4 in this article: https://www.forbes.com/sites/kristinmckenna/2023/01/05/5-big-changes-to-roth-accounts-in-secure-act-20/?sh=7816937f22c5
"So, employer contribution needs to be added in ‘Pre-Tax’ deduction section of the Paycheck."
It is not a deduction; it is a match. Added as a deduction it will reduce the net deposit amount to less than it actually is by the match amount.
Thank you for working on this.1
@Quicken Jeff the law recently changed with the Secure 2.0 act. Employers can now make matching Roth 401(k) contributions:
Quicken user since Q1999. Currently using QW2017.
Questions? Check out the Quicken Windows FAQ list0
Thanks for the info, @mshiggins !
I'd heard some noise about that but did not know it was happening. As employers start supporting this in the coming years I could imagine changes to better accommodate the new law.0
Would think Quicken would be on top of the current structure of 401k Roth plans. Employer Match has been in place so we need a simple and comparable option to that of regular 401k employer match.0
@Quicken Anja Any follow up on this issue? The Roth 401k After Tax Deduction needs the Employer Match Field. Please advise if this has been escalated to the development team and when an expected fix will be issued. Thank you0
@jenngine see my post above about how to handle the employer match on pre-tax dedication (i.e. when the employer is contributing to the traditional 401(k) in addition to your Roth 401(k) contribution).
The ability to support pre-tax contributions as per the new Secure 2.0 (which went into effect around Jan of 2023) is tentatively scheduled for release in Quicken version R51—pending successful testing, beta approval, etc.2