Welcome back! Ask questions, get answers, and join our large community of tax professionals.

Roth-IRA cash outlay not reflected in net savings

cancel
Showing results for 
Search instead for 
Did you mean: 

Roth-IRA cash outlay not reflected in net savings

WJL

When Intuit tax advisors computes net savings from 401K Strategy, it computes cash expended to fund the 401K net of tax savings.  What about if they contributed $6,000 to a Roth -IRA in prior year? It's not in the baseline that $6,000 cash would be outlaid without the strategy in the plan.  So, net impact of strategy is understated.    

Status: New
Vote now if this is a good idea
1 Comment
sball2
Employee
Employee

The baseline for the 401k strategy comes from Box 12 on the W-2. The only Roth codes on Box 12 are Roth under a 401k (code AA), Roth under a 403(b) (code BB), and Roth under a 457(b) (code EE). 

Post comment