Truth Tip, 401(k) Matches in Asset Flow
When you’re analyzing a 401(k) in Asset Flow (the Tax-Advantaged section), you need to pay special attention to how you add the employer match. The results will differ depending on one factor: whether you entered the match as a percentage of the employee contribution, or as a dollar amount. If you entered the match as a dollar amount, you will need to manually stop the match by zeroing out the contributions in the employer match column. This prevents the match from continuing further than intended. If the employer match is entered as a percentage, then the column will zero out as soon as the employee contributions stop. In this case, it may be simpler to include the employer match as a percentage.