401k and Negative Cash Balance

anonymous · Joined: 02 Aug 2007 Posts: 1434

I record my bi-weekly pay on a net pay basis.

In other words, only take home pay is recorded.

However, in my 401k account (downloaded automatically from
Fidelity NetBenefits), my "local balance" never matches the
"bank balance".

I'm not sure why this is so, but I seem to carry a negative
cash balance - everytime a contribution is made and I
receive shares in my mutual fund, a debit is made to cash.
This reduces my "local balance" and distorts the true
value of my 401k.

Why is a debit to cash made if I run on a net pay basis?

Archived from group: microsoft>public>moneycentral

Cal Learner · Joined: 02 Aug 2007 Posts: 996

In microsoft.public.moneycentral,
wrote:

>I record my bi-weekly pay on a net pay basis.
>
>In other words, only take home pay is recorded.
>
>However, in my 401k account (downloaded automatically from
>Fidelity NetBenefits), my "local balance" never matches the
>"bank balance".
>
>I'm not sure why this is so, but I seem to carry a negative
>cash balance - everytime a contribution is made and I
>receive shares in my mutual fund, a debit is made to cash.
> This reduces my "local balance" and distorts the true
>value of my 401k.
>
>Why is a debit to cash made if I run on a net pay basis?

Because you are not entering the contributions to the account. I am
surprised that Fidelity does not enter the contribution
transactions.

You have the option of eliminating the cash account. To do so, from
the account details under General Information, click Rename.
Un-check the check-box.