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How to setup Roth IRA and Roth 401(k) accounts?

SomeItalianGuy

I searched - honest I did.

Guidance on setting up Roth IRA and Roth 401(k) accounts would be very greatly appreciated.

After linking the accounts via Online Services, and then Edit Account Details, I do not see any options related to Roth configuration. What am I missing?

Quicken Classic Deluxe on Windows.

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Comments

Boatnmaniac

From what I have been able to ascertain, Quicken does accurately treat Traditional IRA accounts and Roth IRA accounts in the Tax Reports, Tax Planner and in Lifetime Planner. At least I have found no issues to date in how they are managed in Quicken. What is key to how they are managed by Quicken is the Tax Schedules that are used. The Tax Schedules for IRAs are different from the Tax Schedules for Roth IRAs.

Maybe I missed it but I did not see anyone answer the question regarding Roth 401(k) accounts. At present, Quicken does not yet have a Roth 401(k) account option. I know they are working on it but it is not known when it will be released. What I have suggested to those who wish to have a Roth 401(k) account in Quicken is to set up a Roth IRA account and give it a Roth 401(k) account name. It is not perfect but it will capture contributions as pre-tax income and distributions as deferred income. However, this solution will not work with employer retirement plans that haves both 401(k) contributions and Roth 401(k) contributions held in the same account.

mshiggins

@q_lurker thanks for the subscription version info. Looks to be a useful improvement.

In Q2017, the Lifetime Planner treats withdrawals from Roth IRAs differently (and presumably correctly) than Trad IRAs.

q_lurker

A Roth account is considered a tax-deferred account for Quicken's purposes, since it grows and you you can trade within it without taxable consequences.

The subscription edition allows you to change the type as shown below under account details:

I am not clear on what the ramifications are of setting as Roth vs Traditional. I suspect the Tax Schedule for withdrawals should be different but I have not investigated.

mshiggins

To the best of my knowledge, the only way to properly designate an account as Roth IRA, is to do so during manual account creation of an IRA account.

It’s hard to even find the type of IRA for IRA accounts in Quicken. The only place I can find it is in Account Details and it is not editable there.

Maybe it’s better in versions later than Q2017? Any Q subscription users care to chime in?

SomeItalianGuy

I do not see any option, anywhere, to designate an account as Roth IRA or Roth 401(k). Do I simply set it up as IRA / 401(k)?

Is that the idea? But, it is not a tax deferred account, so…

mshiggins

For Roth IRA, the designation of the type of IRA was in like the very last manual account creation dialog. Have you tried creating the Roth IRA account manually first so you can specify it is a Roth IRA, then connecting the account for transaction downloading?