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joshvb
January 4, 2025
Question

Personal 401k Tracking

  • January 4, 2025
  • 1 reply
  • 0 views

I have a client who also uses QBO for their personal finances. They have a 401 (k) and a few IRA’s. How would I record their contributions, employer matches, dividend and interest, and the gains and losses? What accounts do I need to create in the COA?

1 reply

D
Dandie_A
January 4, 2025

It’s wonderful that you're helping them track their financial progress smartly using QBO, Josh. I'm glad to assist you today with recording contributions, employer matches, dividends, interest, and gains and losses for your client's 401(k) and IRA accounts in QuickBooks Online. That’s a great way to keep finances organized and up-to-date.

 

To record the contributions and employer matches, here are the steps below:

 

  1. Navigate to Payroll and click on Employees.
  2. Choose an employee and click Start or Edit under Deductions & contributions.
  3. Click + Add deduction/contribution, then select Retirement Plans from the dropdown.
  4. Pick the specific type of retirement plan. For plans without employee matching, choose the Company-only plan.
  5. Input the provider or plan name under the Description.
  6. Fill out the necessary fields. If setting a company match, use the dropdown under Company contribution to determine the calculation method, then specify the amount or percentage per paycheck and the annual cap.
  7. Click Save, then Done to finalize the settings.

 

For additional guidance, please refer to this article: Set up contributions and employer matches of client personal finances.

 

When managing 401(k)s and IRAs in QuickBooks Online, it's important to establish corresponding Other Asset accounts for streamlined tracking. Also, set up specific income accounts for Interest Earned and Dividends to accurately track earnings. This approach simplifies financial management and improves the precision of your financial insights, setting the stage for continued success.

 

To ensure precision and operational efficacy, I recommend consulting with your accountant. They can provide professional insights and bespoke advice tailored to your business needs.

 

Additionally, if you like to review your employee reports, you can check this article: Payroll Reports in QuickBooks Online. It offers valuable insights and guidance that can enhance your understanding and management of payroll data.

 

If you encounter any detailed questions or specific challenges as you navigate the setup process, please don't hesitate to contact us. We're here to assist you every step of the way. Wishing you success as you continue managing your client's finances. Have a wonderful day!

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