I had a one time rate change from 4.0% to 3.8% on a 403b, how to handle?

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Tom11
Tom11 Member ✭✭✭✭
in Investing (Mac)
I am manually keeping track of a loan that I will pay back during the next 5 years. it was working perfectly with QUICKEN Mac, then I got a letter showing the balance at the time of the letter and the new list of Payments with what was the balance at the time and new rate of 3.8%. What do I do with the account to continue using it, or do I close that account and start over with another at the 3.8% rate, and current balance, Thanks

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  • Frankx
    Frankx SuperUser ✭✭✭✭✭
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    Hi @Tom,

    First a disclaimer - I am a Windows user (not a Mac user).  However, I don't believe your question has much, if anything, to do with the program.

    I believe the easiest and quickest approach would be to "close out" the old loan account in Quicken and open up a new loan using the "balance at the time of the letter" as the beginning principal and the new interest rate. This is especially appropriate if we consider the "nature" of this type of loan.  It is effectively "self-dealing" - with no third parties involved - you are "paying yourself back" for funds you withdrew from a retirement account.

    Let me know if you have any followup questions.

    Frankx

                            Quicken Home, Business & Rental Property - Windows 10-Home Version

                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

Answers

  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Answer ✓
    Options
    Hi @Tom,

    First a disclaimer - I am a Windows user (not a Mac user).  However, I don't believe your question has much, if anything, to do with the program.

    I believe the easiest and quickest approach would be to "close out" the old loan account in Quicken and open up a new loan using the "balance at the time of the letter" as the beginning principal and the new interest rate. This is especially appropriate if we consider the "nature" of this type of loan.  It is effectively "self-dealing" - with no third parties involved - you are "paying yourself back" for funds you withdrew from a retirement account.

    Let me know if you have any followup questions.

    Frankx

                            Quicken Home, Business & Rental Property - Windows 10-Home Version

                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

  • Tom11
    Tom11 Member ✭✭✭✭
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    So I created a new loan. However the only way I can make the payment come out correctly is to change it manually, then quicken adds a little to EXTRA PRINCIPAL, but under the uncategorized to make The Payment correct, Interest Correct and Principal correct for that payment.... Not sure why I have to force the Payment to be correct, maybe the payment is FIXED., for this loan.
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