Why are my 401K contributions incorrectly increasing IRR?

rbsimplifi

My current 401k contributions are somehow increasing IRR, not just the balance of their portfolios. I need help figuring out where/ how to correct these transactions.

Thanks, from a newbie.

Coach Aldair

Hello @rbsimplifi,

Thanks for reaching out, and welcome to the Community!

I'd be happy to help clarify this. In Quicken Simplifi, the Investing Performance Over Time feature offers two measurements:

• TWR (Time-Weighted Return): Measures investment performance without taking cash moving into or out of the account into consideration.
• IRR (Internal Rate of Return): Measures investment returns between two dates while accounting for cash moving into and out of the account.

Because IRR factors in contributions and withdrawals, your 401(k) contributions can influence the IRR calculation. However, we'd like to better understand what you're seeing to determine whether the transactions are being reflected as expected.

To better understand what you're seeing, could you please provide a few additional details?

1. Is your 401(k) account connected to your financial institution or set up as a manual account?
2. Are you seeing the IRR percentage increase immediately after contributions are deposited?
3. Could you share a screenshot of the Performance tab showing the IRR results? Please redact any sensitive information.

For additional information, please see our support article: Investing: Performance Over Time.

Once we have a little more information, we'll be happy to take a closer look.

Thanks!