Processing a loan against a 401(k) account

#2 07-30-2008, 06:15 PM

Thank you. I'm pretty anal about my recordkeeping, so I'll try your method.
Wish I didn't have to either, but got to get it done.

Will let you know how it works!

Ben

"Dick Watson" wrote:

- quote -

> There are lots of ways this can be handled that are more or less trouble. See
> http://umpmfaq.info/faqdb.php?q=2 for one.
> If you want to track performance, remove/add won't do it. Likewise, you can
> think of the loan as an investment and it has its own performance. (Lately
> probably pretty good compared to most other possible 401k investments.)
> "Ben" wrote:
> > Should I setup a separate Loan account linked to thie 401(k), setup an
> > "loan" investment, or just remove the shares / add shares as I repay.

#1 07-30-2008, 05:22 PM

There are lots of ways this can be handled that are more or less trouble. See
http://umpmfaq.info/faqdb.php?q=2 for one.

If you want to track performance, remove/add won't do it. Likewise, you can
think of the loan as an investment and it has its own performance. (Lately
probably pretty good compared to most other possible 401k investments.)

"Ben" wrote:
- quote -

> Should I setup a separate Loan account linked to thie 401(k), setup an
> "loan" investment, or just remove the shares / add shares as I repay.

07-30-2008, 02:46 PM

In microsoft.public.money, Ben wrote:

- quote -

> Does anyone know the best way to setup this up on Money 2007 Deluxe? My
> 401(k) administrator - JPM - will end up removing shares for the balance of
> the loan and then adding shares back as I pay it off each pay period.
> They do not allow me to download transactions, so all entries will be done
> manually.
> Should I setup a separate Loan account linked to thie 401(k), setup an
> "loan" investment, or just remove the shares / add shares as I repay.

From the point of view of the 401-k, it is an investment or a loan
being made. You could "Buy" shares of a different investment within
the 401-k as it loans the money, since that is probably simpler than
setting it up as a loan lending money. Your 401-k gets the interest
that you pay.

#-1 07-30-2008, 01:24 PM

Does anyone know the best way to setup this up on Money 2007 Deluxe? My
401(k) administrator - JPM - will end up removing shares for the balance of
the loan and then adding shares back as I pay it off each pay period.

They do not allow me to download transactions, so all entries will be done
manually.

Should I setup a separate Loan account linked to thie 401(k), setup an
"loan" investment, or just remove the shares / add shares as I repay.

Thanks

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