Should I track Roth 401(k) amounts separately from normal 401(k) amounts on my balance sheet?
Some of my employees have deductions for their 401(k) on a Roth basis, and some do normal 401(k) deductions, so QBO has two entries on my balance sheet, one for each. It's a slight hassle to keep the amounts separate. Is there any benefit to doing so, or should I change the accounting setting to just post all 401(k) deductions into a single balance sheet account?
Should I track Roth 401(k) amounts separately from normal 401(k) amounts on my balance sheet?
I always keep them separate since one is deducted before taxes and one is deducted after taxes. Since they are always shown as two different amounts on any report it is also easier to input those two amounts vs. add them up and lastly when you are comparing between reports you can match-up each of the two totals.
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