How to Add a 401k Contribution with an Employer Match

welcome this video will walk you through

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how to add a 401k contribution with and

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without an employer match in your income

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lab plans from your main dashboard click

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the pencil icon in the top right of your

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screen to get to the edits of your plan

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if this is your first time building the

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household you'll first see the plus sign

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on the right side here where you'll have

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to click that to get to your savings

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section um if you haven't added any

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assets first then you do want to first

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go to the assets page and then under

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their investment accounts adds your

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401ks and any other investment account

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that the clients will use in their plan

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and that they will be planning to make

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contributions into once you've have your

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assets set up then go to your savings

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Tab and then from there to add a

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contribution just give us a name so here

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for this example I've got Mary's 401k

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contribution that I typed in then open

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the drop down here to select the target

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account so where we're making those

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contributions into then we want to put

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in the amount the default here is to put

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a monthly amount and then from there you

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can click the gear icon to go into your

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additional settings here you can set the

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frequency so whether this is occurring

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monthly if you want to make it annually

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you can change this to one year or if

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you want to factor in a onetime

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contribution you can click this box for

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one time and then put in the date for

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the month and year in which you are

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going to make that

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contribution here we're just going to

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plan on normal monthly recurring

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contributions it is important to know if

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you do choose the yearly option this

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does interpret this as onetime

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contributions happening once that year

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so do want to uh as a best practice keep

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it monthly unless

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otherwise from there you can keep the

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start date to just begin at the

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beginning of this year so here we're

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just going to have it start January 2024

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and then with the end date option since

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this is Mary's contribution we want to

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make sure that we have it stop at Mary's

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retirement so we want to select that as

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the end date option and then click save

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from there if you're adding an employer

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match there's two ways in which you can

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do it some of our users prefer to keep

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it simple and just add the employer

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match into one line item here so we

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could just call it Mary's 401k

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contribution plus employer match and

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then instead of the 500 again we can

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just put in the new Total showing that

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we're going to have $1,000 here instead

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of the 500 going into Mary's 401K this

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is your simplest and easiest option in

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doing it this way the other option here

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is to add the employer match as a

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separate line item so here if I was

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doing that step I would instead below

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here

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add Mary's employer match as a second

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line item show it going into Mary's 401k

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and then put in the monthly amount here

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clicking the gear icons to also make

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sure that the frequency and the end date

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here match so that way in this case the

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employer match also stops at Mary's

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retirement from there there you may also

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want to go to your income tab that under

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the other income section here's where

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you can add Mary salary or any income

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they're having pre-retirement as well as

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in retirement but for this specific case

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we do want to make sure we've got Mary's

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salary in here again entering a monthly

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amount it's important that on the salary

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we call this a wage the reason is that

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once you click the gear icon you'll have

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a field here for deductible amounts so

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in this case since we're saying Mary's

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making taking $500 from her salary to

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contribute to her 401K we want to make

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sure that's deducted against her

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pre-taxed income so that way we don't

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overestimate the FICA tax when we run

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the tax calculations so here I've gone

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ahead and added the $500 deductible

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amount and then I could hit save if you

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follow the second option here where you

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created Mary's employer match as a

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second line item then we would recommend

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going in here and adding Mary's employer

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uh match as an income stream here as

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well and then here since Mary's

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employers match is just $500 we'll put

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that same amount we'll Sayes earned by

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Mary and then we'll call it a not

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taxable income Source this just allows

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the software to know that when uh you're

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showing savings the software would like

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to see especially in pre-retirement that

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you've got income coming in that can be

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saved so when you're putting the

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employer match as a separate line item

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you also want to add it as a separate

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income stream here call it non- taxable

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and also make sure the end date stops at

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Mary's retirement just so it all lines

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up uh as well and then you can hit save

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from there and then click finish then

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after you click finish make sure it

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saves all your inputs and then you can

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get right back to your play a dashboard

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thank you for being this video we hope

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this helps please reach out to our team

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if you have any questions