401k Employer Contribution

hrmascioli · 2005-10-15T12:13:12+00:00

I've read some of the threads on this, but I'm still not sure how tohandle it. I'm using Quicken 2006 Premier. In my split paycheck, usingthe wizard, I entered a Pret-Tax 401k Contribution deduction with anEmployee Match. My problem seems to be that, Quicken is reducing my taxliability by the amount of my employer contribution.So it looks like this:Salary 1000My contribution to 401k -100Employer contribution to 401k -50Taxable Income 850Any ideas on how to to tell Quicken not to reduce my tax liability asit pertains to my employer match? Thanks for the help.

Oct 15, 2005 22 Replies

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JM 20 years ago

Bingo! That was going to be my next question - what were the tax attributes of the 401k account?

Tinkering around - I have been able to duplicate what you were seeing in the Tax Schedule Report.

I do not agree with the QW rep who recommended setting the 'Transfers In:' attribute for a QW 401k account. That was the source of your problem.

Bottom line - when using the Paycheck Wizard in combination with a QW defined 401k account, leave the 'Transfers In:' tax attribute blank for the 401k. QW handles everything correctly without setting this attribute. Setting the tax attribute for the 401k confuses QW and results in errors in QW's tax reporting.

The recommended tax attribute for 'Transfers Out:' is correct. I have mine set that way and am making transfers out and QW reports the transfers out correctly as taxable income. These transfers out are indeed reported in a year-end Form 1099.

Did this clear up your original problem with the Tax Planner?

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hrmascioli 20 years ago

JM,

Yes, it cleared up the original issue with the Tax Planner as well.

Thanks so much for your time, I really appreciate it!

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Andrew 20 years ago

OK - seems you got it (a lot of posts today for this issue!); my question related to the source of the funds. It seemed from your original post (At least to me) that what monies were be allocated to your company's matching amounts were being allocated out of your own paycheck. That would have been both a problem as well as the source of the error in that ALL the monies would be allocated to the 401k plan. But as you've described, my original assumption was indeed not true. That's good! You seem like you have it solved.

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