Education Savings Account


V

vrdumbos

How to create these kind of accounts in Money 2005. There is a limit on how
much you can contribute each year, can money keep track of that and remind
you when necessary.
 
Ad

Advertisements

V

vrdumbos

If I set up as some kind of investment account then Money will not keep track
of the year to which the contribution was made. I will not be able to track
If I make an excess contribution.
 
D

Dick Watson

Why not and why not? You will now the dates of transactions. You will be
able to report on, say, buy activity by date. Why doesn't that capability
meet these needs? No, Money won't pop a box say "Excuse me, that's $50 more
than you are allowed to contribute this year... OK Cancel." Money doesn't do
this for anything that has an annual limit.
 
D

Dick Watson

You will know the dates...

Dick Watson said:
Why not and why not? You will now the dates of transactions. You will be
able to report on, say, buy activity by date. Why doesn't that capability
meet these needs? No, Money won't pop a box say "Excuse me, that's $50
more than you are allowed to contribute this year... OK Cancel." Money
doesn't do this for anything that has an annual limit.
 
M

Mark Horn

Why not and why not? You will now the dates of transactions. You will be
able to report on, say, buy activity by date. Why doesn't that capability
meet these needs?
If the investment is an IRA, then you have until April 15 of each
year to make contributions that apply to the prior year. Knowing the
date of the transaction doesn't tell you which year to apply it to.
That means that you don't know which year anything from Jan 1 -
Apr 15 will apply to, which means you won't know when you go over
the limit.

Or am I misunderstanding the problem?
 
Ad

Advertisements

D

Dick Watson

So put in a memo if you fund in the non-current year. Money doesn't control
or track this in any way. You control this with what you tell the trustee
when you contribute. They report it on the statements and the 5498. That's
what matters. Whatever you put in Money is irrelevant for this purpose.
Getting all hung up over it seems useless for this reason.
 
M

Mark Horn

Getting all hung up over it seems useless for this reason.
While it's certainly not worth getting hung up on, it's also a
reasonable request that your PFM software track this in a standard
way.
 
D

Dick Watson

The problem with this is that it's totally a function of tax law that is
notoriously complex and fickle. How many different types of accounts like
this are there? And how many different restrictions are there on each one
and for how many different cases? If you support the "contribution year"
data collection in a formalized way--I've already cited the un-formalized
ways to can be done--then do you support the catch-up contributions and Roth
modified gross taxable cap and rolloff computation and then you have to
worry which brackets and all of the Roth gross taxable modifiers. It never
stops. Personally, I'd rather Money stayed somewhat generic--of all of the
problems Money could solve that it doesn't, this seems not terribly
important. With Money as it is, there are numerous ways to get the necessary
answers that were being requested indirectly. Adding a check box or a
contribution year pull-down to answer the same question doesn't seem like a
great piece of value-add.

But we agree to disagree.

 
M

Mark Horn

How many different types of accounts like
this are there?
I don't know. But of the ones you cited, the only one that I've
ever had to personally worry about is contribution to IRAs from the
previous year. Of course, there's an easy work around. Which is
why this it not worth getting hung up on.
But we agree to disagree.
I don't think we disagree. We both don't think that, of the
feature requests that come along, it should be prioritized.
We both don't think it's worth getting hung up on. Unless you
think it's completely unreasonable to even request this feature,
then we don't disagree.
 
Ad

Advertisements

M

Mark Horn

We both don't think that, of the
feature requests that come along, it should be prioritized.
Oops. That should say "it should NOT be prioritized".
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top