Q: How can I model an employer match for my 401k when I make my contribution to a Roth 401k and my employer contributions are to a standard 401k?
A: While on the Dashboard, you’ll need to add both types of 401k accounts to the plan and input details accordingly (Dashboard (+) > Retirement > Retirement Plan > set Type to Roth401k/401k).
For the Roth 401k Basics, fill out all the information requested on this screen and leave Employer Contribution set to No. Go through all of the tabs on the left to confirm all values are set to your preference, paying special attention to Timing to make sure it aligns properly with Pre-Retirement and the 401k Timing.
When inputting details on the Basics tab of the 401k Match, we suggest using a detailed Name for ease of reviewing the plan that includes something along the lines of “Employer 401k Match.”
Skip the Contribution section and change the first line item under Employer Contribution to Yes. Set Employer Contribution Type to Fixed. For Contribution Amount you can choose Amount or Amount with Inflation.
Review all the tabs on the left side of the screen and upon completion, you can select Done.
To review these retirement contributions, from the Dashboard, turn on Details and Year View, then go to the Retirement tab in the middle. When you hover over a column in the chart, it will show you an overview of funds in the plan that year, and in the example below you can see the $12,000 “To Savings.” This money is coming directly from the client’s income, so it is shown on this chart. The employer contributions go directly to the retirement account, which you can find details on below the chart, in addition to seeing more details on the client contributions as well.