Retirement Accounts - Data Entry - Employer Accounts vs 401k

I have a 401k Profit Sharing Plan that consists of pretax Employee 401k contributions and pretax Employer contributions and pretax rollover contributions. No Roth and No non-qualified plan funding sources.

ESP Retirement Accounts has different boxes for "Employer Accounts" and "401k ... Defined Contribution Accounts."

Does ESP treat those two funding sources of retirement accounts differently for some reason? Does ESP treat "Employer Accounts" as non-qualified plans??

ESP allows special withdrawals and smooth withdrawals come from "Individual Deductible Accounts" versus "Employer Accounts". What difference does it make between these two funding sources?


dan royer's picture

No, it doesn't treat them differently--except for the ROTH accounts which it treats differently according to tax rules. We originally set that up for convenience sake--to perhaps make it easier to remember your accounts. But these qualified accounts all go into the same pool--well, separate for each spouse of course. Even on the Withdraw side, "individual" and "employer" come from the same pool of money (since of course they go into the same pool of money). ROTH, however, is calculated differently and is tracked differently internally. For example, you can choose to withdraw ROTH before or after the other accounts.

Special withdrawals do come only from the specified accounts. It becomes a pain for me when drawing heavily on my retirement accounts in early retirement, until deferred SS at age 70. My "retirement accounts" balance in the net worth report is consolidated. If I try to schedule a withdrawal from one of them I don't know the balance is inadequate until the income report shows less withdrawn than I scheduled. I then have to try again by shifting some of that planned withdrawal from the next account class.

So, in that respect, they differ, but apparently not in earnings or tax status.

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