Change 401(k)/403(b) account to include Roth contributions

paul16

I have a 403(b) account that I have been tracking for years in Quicken Classic for Windows (currently version R59.35 build 27.1.59.35). I have previously always made pretax contributions that were matched by my employer. I just changed my contributions to Roth (after tax). Contributions are still matched by my employer (pre tax). Working with phone support, we found no way to allow for making this change to the account and we were not able to come up with a work around. There seems to be no way to add Roth contributions and continue the employer match.

I am using the paycheck wizard to manage my paychecks. We tried to add an after tax deduction using a 401(k) loan type of deduction. This adds a third transaction into the 403(b) account register but labels it as an "Employer Match Contribution". I can edit the memo description in the register but am not sure if this is posted as a pre- or post-tax transaction. The only way to include the employer match, though, is through the pre-tax deductions. I cannot set my contribution there to zero without zeroing the employer match.

I need to have a way in Quicken to record after tax 403(b) contributions that are matched by my employer with pre-tax money and I need to do this in an existing account that has heretofore been an entirely tax deferred account.

Any guidance with a viable workaround until Quicken build this function would be greatly appreciated.

paul16

Before calling support, I tried to edit the account in the account list selecting the no radio button for tax deferred. This did not make the account available for Roth contributions in the paycheck wizard.

Quicken Kristina

Hello @paul16,

Thank you for taking the time to report this issue to the Community, although we apologize for any frustration or inconvenience experienced.

This issue with the 401(k) & 403(b) account types not showing as an option for after tax deductions in the paycheck wizard has already been reported to our Development and Product teams for further investigation and resolution. Though we do not currently have an ETA, once a solution is created it will be made available as part of a future release.

Thank you!

(CTP-9516)

wassonsubs

My daughter contributes roth but has pretax match I was able to set up her payslip in Quicken so that they show separately (roth as after tax), but sadly when you download the transactions for the shares bought it just downloads as a total into her account.

Big miss in Quicken but at least the contributions I have marked as pretax or roth. I stopped downloading and now enter the transactions manually which helps to separate at least but as it is all one account Quicken needs to get on board with better Roth analysis as it really is not worth my while paying for Quicken each year if I have to manually enter everything. I have personally stopped contributing now, but am doing conversions and transfers which to be honest Quicken never gets fully right so I am going to stop paying for Quicken until they sort it out and rewrite the software. It needs to accept more detail to be useful for taxes.

I already enter mu credit card and banking info as I would hate to just "accept" a download and miss fraudulent transactions. Easier to do it myself. I've had quicken for 25 years (and am an accountant) so it really doesn't take me long to do everything and I know then it is correct. It will off course get easier when I get my kids accounts off my quicken and I have converted everything and got riud of my 401k's (another year and everything will be simpler in either a trad or roth IRA) That seems to be the only way Quicken truly manages to keep things in sync and even then it does some odd ball stuff on downloads!

I really only use Quicken for tracking and making sure my bank accounts have money to pay bills! It is worth having for that. Not sure if any other program works better!??

Quicken Kristina

Hello @wassonsubs,

Thank you for joining this thread to let us know that you are also experiencing this issue, we appreciate the information provided.

If there are specific improvements you'd like to see made to how Roth accounts are handled in Quicken, I recommend creating an Idea post for each improvement you'd like to see. Ideas that get enough votes may be implemented in the future! For information on creating an Idea post, please review the post linked below:

https://community.quicken.com/discussion/7849425/creating-and-voting-for-ideas-in-the-community

Thank you!

paul16

@wassonsubs

I am interested to see how you were able to set up the paycheck to show Roth after tax contributions with pretax employer match. That is what I cannot figure out. When I try to use the Roth 401(k) after tax deduction option, my existing account is not listed as an option for transfer. I presume this is because until now it has been completely pretax/tax deferred.

Quicken Kristina

Hello @paul16,

To add a 401(k)/403(b) account as a pre-tax deduction, in the Paycheck Wizard pre-tax deduction section, click the Add Pre-tax Deductions dropbox and select 401(k)/403(b)/457.

Then, in the window that comes up, you should be able to select your account from the account dropbox.

Are you not seeing the account as an option in that dropbox?

Thank you!

jdschachte

The problem I see with this POST and my experience is if employee pretax contribution is zero, then the employer match contribution accumulates "as" the employee contribution. This should not happen.

Quicken Kristina

Hello @jdschachte,

To better assist with this, could you please clarify what you mean? When I test in my Quicken, it shows as employer contribution.

I look forward to your reply!