Accounting for Loans from a 403b or 401k
I just took out a $50K loan against a 403b account that is being tracked in Simplifi. The $50K will be deposited into my checking account (and I'll spend it on a new car). Then, each month a payment will be deducted from checking and deposited back into the 403b. Essentially I'm borrowing money from myself.
I'm confused on what types of accounts to set up. I assume a new asset account for the car (I have an account for our other car too). Then, do I simply allocate the monthly payment deducted from checking back to the 403B? Where does the liability show up?
Thanks for your help!
Best Answer
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Hello @ericksonjb,
Thanks for reaching out! You can add a liability account to Quicken Simplifi in the same way you add any other account type to the program. The only difference is that when you connect your liability accounts in Quicken Simplifi, you will not see transactions downloaded into the connected liability account, but Quicken Simplifi will update the liability balance as changes are made to the balance on the bank's website.
If you want to track a liability account manually instead, our support article here goes into detail on how to do this:
You can then manually enter the transactions you want to track within the created liability account, or as transfers from your checking account into the liability account.
I hope this information helps!
-Coach Jon
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