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How to use Roth 401k in paychecks?

mikek753b

the new update got - "Quicken now supports Roth 401 (k) after-tax deductions in paychecks. This update also lets users track their Roth 401(k) contributions in the Tax Center."

But, how to use it for existing paychecks to get this correctly in the Tax Planner and other reports?

Any batch update to run for existing to transform from just account transfer to account + Roth401KContrib new predefined ?

Currently I use fake extra Investing account for the After Tax Category as a transfer from my paycheck. I use Fidelity 401k account in the Pre-Tax Deductions

but, this is just Contributions.

remaining part is how to split downloaded transactions per the Source from 401k to before and Roth ?

thanks

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Comments

Kevin10877

I have the same question. Great they added the payroll deduction option but what about the account setup?

Quicken Kristina

Hello @mikek753b and @Kevin10877,

If you used the paycheck wizard to set up your paychecks as income reminders, and you chose the Gross amount rather than the Net amount option, then when you enter the reminder into your register, you usually get a window that gives you an option to edit.

Screenshot 2023-05-06 at 12.08.43 PM.png

Select Add After-Tax Deduction. Then choose Roth 401k.

Screenshot 2023-05-06 at 12.10.33 PM.png

A window will come up letting you select the account and the amount.

Screenshot 2023-05-06 at 12.11.08 PM.png

If you had the income reminder set up for Net amount, then you would need to delete and recreate the income reminder, selecting the paycheck wizard and gross amount, so that you will have the option to add in the Roth 401k.

I hope this helps!

mikek753b

https://community.quicken.com/discussion/comment/20359314#Comment_20359314

Quicken Kristina,

thank you for the reply, but it didn't help me or answered my original questions.

Especially about what Account type to use for Roth 401k Deduction?

there is no Roth 401k type, but Roth IRA, which for no reason has to be deferred type

the Roth is Tax Exempt type, but I don't see such type in Quicken for a while.

it's misleading to use deferred type for Roth, which isn't taxed upon distribution and as result nothing to defer at all

Also how to address all prev pay checks transactions in Quicken that have contributed after tax to Roth?

BTW - I called Premium Tech Support, but didn't get any answers related to this Roth type situation, I was asked to call again.

Quicken Kristina

Thank you for your response,

Since the Paycheck Wizard is basically a specialized form of income reminder, it lets you edit current and future instances, but not past. If you are wanting to edit information from past paychecks that is in your register, you would need to do it manually.

What do you mean by account type? When setting up or editing a paycheck income reminder, there is only one choice for Roth.

When downloading from the source (financial institution), the information generally comes in the way the financial institution sends it to us unless you have a manual entry or bill/income reminder for Quicken to match it to.

Thank you.

mikek753b

https://community.quicken.com/discussion/comment/20359370#Comment_20359370

thank you for the reply

what to select for the Account in your example? what that Account Type is with all parameters?

What is the Account Type? please provide complete screenshot that shows the Account and then next screenshot that shows all details for that account. As in your example it's empty.

and how to make batch change / replacement for past Paycheck transactions?

the answer by manual change isn't accepted answer for me and IMHO. think about past several years getting Roth contributions.

p.s. as you may see many have the same questions to work with Roth 401k and I hope it will have all Quicken Customers as well

Quicken Kristina

Thank you for your response,

I did not use any account in my example. Those screenshots are of the Paycheck Wizard, which can be accessed by adding an income reminder and clicking the blue link at the bottom.

To expedite making manual changes, you can got to Edit>Find/Replace and use that tool to help you locate and change those older paycheck entries. Quicken treats paycheck entries like a split transaction.

Thank you.