How do I enter employer 401k match to the lifetime planner?

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Xander
Xander Member ✭✭
in Budgeting and Planning Tools (Windows)
I want Quicken to forecast future balances for my 401k account. I don't know where (and how) I should enter the match that my employer provides to my deferrals for use in the Lifetime Planner. Please provide suggestions! thanks!!!!
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  • Scooterlam
    Scooterlam SuperUser, Windows Beta Beta
    edited February 2021 Answer ✓
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    Xander said:
    I want Quicken to forecast future balances for my 401k account. I don't know where (and how) I should enter the match that my employer provides to my deferrals for use in the Lifetime Planner. Please provide suggestions! thanks!!!!
    In Lifetime Planner, to model employer contributions, click Change Assumptions>Investments>Edit in the new window.  Then, select your 401(k) account in the first table  Now, at the bottom of that window, in the second table, called Contributions <to your 401K>, click on the New button.  This brings up a wizard that will walk you through modelling your contribution and your employer contributions.  See image from my test file.  



    Employer contribution modelling can be a bit tricky.   You can validate your assumptions by looking at the plan results.  See image from my test file.   Note,   The Total Savings line in Plan Results is the sum of your and your employer contributions..



    These contributions will continue based upon the start and end dates you select.   

    Looking at future years in the Plan Results, you can see the value of your tax deferred accounts.  Quicken LTP, combines all of your tax deferred accounts (401k, IRA et al) together unfortunately.  See image.   Of course this is only a forecast based upon a model and assumptions you make.  I would recommend that you regularly review and update your LTP assumptions!




Answers

  • Chris_QPW
    Chris_QPW Member ✭✭✭✭
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    You don't.  It isn't how the Lifetime Planner works.

    What it does is take the current value of your 401K account and applies whatever you have set for the rate of return for "Your tax-deferred accounts".  Which as the name implies, can't be different for different retirement accounts/types.
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  • Scooterlam
    Scooterlam SuperUser, Windows Beta Beta
    edited February 2021 Answer ✓
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    Xander said:
    I want Quicken to forecast future balances for my 401k account. I don't know where (and how) I should enter the match that my employer provides to my deferrals for use in the Lifetime Planner. Please provide suggestions! thanks!!!!
    In Lifetime Planner, to model employer contributions, click Change Assumptions>Investments>Edit in the new window.  Then, select your 401(k) account in the first table  Now, at the bottom of that window, in the second table, called Contributions <to your 401K>, click on the New button.  This brings up a wizard that will walk you through modelling your contribution and your employer contributions.  See image from my test file.  



    Employer contribution modelling can be a bit tricky.   You can validate your assumptions by looking at the plan results.  See image from my test file.   Note,   The Total Savings line in Plan Results is the sum of your and your employer contributions..



    These contributions will continue based upon the start and end dates you select.   

    Looking at future years in the Plan Results, you can see the value of your tax deferred accounts.  Quicken LTP, combines all of your tax deferred accounts (401k, IRA et al) together unfortunately.  See image.   Of course this is only a forecast based upon a model and assumptions you make.  I would recommend that you regularly review and update your LTP assumptions!




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