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How to record company match (pre-tax vs post tax)

Questions about updating prices or transactions in Fund Manager

Postby JL2035 » Tue Jan 23, 2024 4:57 pm

Hi, I am seeking advice on how to record company matches in my 401K Roth account. I have just learned that the company match (which is deposited each time I make a contribution (bi-monthly)) is not post-tax like my contribution, but in fact considered pre-tax. I have been recording each company match as a separate purchase transaction with a note as "company match" but I do not see a way to identify them in perhaps a better way. My contributions should not be taxed when I withdraw them but I just learned that the company match amount will be taxed. Therefore I would like to keep the amounts separated in some way. Now accepting any advice on how to record these. Your help is appreciated.
JL2035
 
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Postby Mark » Wed Jan 24, 2024 10:36 am

Hi JL2035,

I believe you'll also need to pay taxes on all the gains from the company's contributions too? It might be best to just separate these into 2 investments, one for your contributions, which will all be tax-free when you withdrawal, and another for your company's contributions, which will all be taxable (like a traditional 401K).
Thanks,
Mark
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Mark
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