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401K match entry

asd

Hi all,

I had a question about entering the monthly salary and company 410K match into quicken manually. Should I enter these as a miscellaneous income or as a deposit. I was wondering if using one vs. the other would affect the cost basis and return calculations. It seems to me misc income would be counted as gains and not be counted in the cost basis while a deposit would be in the cost basis.

Thanks for your insights in advance

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Comments

Tom Young

"Should I enter these as a miscellaneous income or as a deposit."

This is an apples to oranges comparison. "Miscellaneous Income" is a CATEGORY, (the identification of what kind of income was received), where "a deposit" is an ACTION (you depositing some money in the bank.)

If you use the Paycheck Wizard to set up your paycheck it will ask for the employer match amount. These dollars will not affect your net pay deposit, it will show up as an element of your paycheck split - as "cash" to you - but that same amount will be immediacy be transferred to your 401(k) Account.

q_lurker

While you could use a Deposit transaction or a MiscInc transaction, working the money through a paycheck is the best path.

They should all be treated the same with respect to cost basis and return calculations. The paycheck option will flow best to tax considerations within the program.

asd

Thanks for the replies. I guess I will try the paycheck option - this is for my wife's 401K and I am not entering her paycheck regularly. Regarding the 1st response, I have been using the same "category" whether I used "deposit" or "income" as the "transaction". I just got to wondering whether "income" would be thought of as investment income in quicken and whether I needed to go back and change it