setting up 403(B)(9) account

gbarnes12's Avatar

gbarnes12

08 Mar, 2021 05:54 PM

So I have a retirement account that was set up by my employer. In MD I have created a new account and added the security (mutual fund) which this account uses. The real funds go into the actual account through my employer before they deposit my wages into my actual bank account. Thus, in MD, there are no funds going from a separate account into the new retirement account, only deposits which I have entered as "Buy" shares. Apparently this is not the correct method as the balance in the retirement account in MD is being reflected as a negative number instead of accumulating value plus interest and dividends.

I looked back at some previous discussions and my case seems a bit different than the ones discussed before; ie. I am treated as a private contractor, so I do not receive a pay stub which shows the amount of contributions deducted from my pay. Also, my monthly wages vary from pay period to pay period, so to try and go back every 2 weeks and figure out the contribution deduction from my wages prior to the deposit into my bank account seems very tedious to me.

Simple putting the contributions into the MD account as just that, independent contributions seems easier and more efficient.

Any advice on how to use MD to track the deposits, interest, dividends, and changes in value of the investments? Without affecting any of my other personal accounts?

Thanks

  1. 1 Posted by Stuart Beesley ... on 08 Mar, 2021 06:18 PM

    Stuart Beesley - JUST A FELLOW USER and Toolbox ‘guy’'s Avatar

    My preference would be to add a split on your wages and send that money to the investment account, but for the reasons you state, you don't want to do this...

    Just set up a new dummy category called: "Employer contributions to 403B" and then in the investment account create Xfr txns into the account from "Employer contributions to 403B". You will then have to ignore this category on your reporting etc..

    (not support, just a fellow user)

  2. 2 Posted by gbarnes12 on 08 Mar, 2021 06:42 PM

    gbarnes12's Avatar

    Stuart, thank you for your reply. The Split option would work, but I cannot resolve how to add in the employer matching funds into the investment account in a split. Maybe, there is something that I'm overlooking. Also, using this method, the dates would not correspond with what actually occurs as the actual deposits into the investment account and my personal account are made usually more than 2 weeks apart.

    I think I will try the "dummie category" option, as this account doesn't won't affect any reporting anyway. I just want a way to look and see how the investment is adding up over time. We'll see how this works in practice.

    Thanks again for the suggestion.

  3. System closed this discussion on 07 Jun, 2021 06:50 PM.

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