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Roth-IRA cash outlay not reflected in net savings

WJL
Level 2

When Intuit tax advisors computes net savings from 401K Strategy, it computes cash expended to fund the 401K net of tax savings.  What about if they contributed $6,000 to a Roth -IRA in prior year? It's not in the baseline that $6,000 cash would be outlaid without the strategy in the plan.  So, net impact of strategy is understated.    

1 Comment 1
sball2
Employee
Employee

The baseline for the 401k strategy comes from Box 12 on the W-2. The only Roth codes on Box 12 are Roth under a 401k (code AA), Roth under a 403(b) (code BB), and Roth under a 457(b) (code EE). 

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