Adjustments to Income for 401k contributions
In the Federal Taxes report in the Details section of the PDF report, the values listed in the Adj. to Inc. column are not what I would expect. For 2010 everything is fine--the Adj. to Inc. column has the value that I would expect, the tax deductible contribution to my 401k. For 2011, the column contains a value that is 3% (the inflation rate) higher than 2010. Similarly, for 2012, the value is again 3% higher than 2011. Each year, the column increases by the inflation rate.
When I look at the Retirement Account report in the Details section of the PDF report it shows that the employee contributions to my 401k are the same amount for each year--they are not increasing.
I assume that all values in the two reports are end of 2010 dollars. Hence, I would expect that the Adj. to Inc. should remain the same each year. When I entered the amounts in the Contributions tab of the Retirement accounts window, I specified in item 5 that the real growth rate for contributions was 0.
So the Retirement Account report is correct--the contributions to the 401k should be the same for each year. I would not expect the Adj. to Inc. values for be adjusted for inflation. Why is this not the case?
Larry
RSS
We're probably not converting that field back to real. The history of the tax report is a murky one. I originally implemented it as a debugging tool that got looked at manually and got pushed into making it part of our reporting process. I've never had a lot of time (or interest) in going back over it with a fine tooth comb, thus the problem.
Open a support ticket and we'll take care of it.
Best,
Dick Munroe