How can I change the maximum limit for simple IRA employee contribution? It is grayed out at $19,000 and needs to be 19,500

Hello there, @susie-neu.

Allow me to provide some information on the maximum limit for the Simple IRA employee contribution.

When setting up an employee contribution for a retirement plan in QuickBooks Online (QBO), you'll see that the annual maximum is $19,000.00 for the Simple IRA catch-up rate. Since it's still 2023, it's the accurate amount based on IRS contribution limits. However, it will automatically update to $19,500.00 in 2024, as the new year rolls in. 

To learn more about retirement plans, you can visit the IRS website.

I'll leave this article for more information about setting up a retirement plan deduction in QBO. It also contains details on how to edit or remove a retirement plan item: Set up or change a retirement plan.

Keep in touch if you have any other concerns about contribution limits. I'll be around to provide assistance whenever you need it.

Thank you AnnMariee, I will watch for that change in 2024!

We have several employees over the age of 50 that want to contribute up to the $19,500 maximum allowable by the IRS in 2023. QBO is limiting them to $16,000. How do I change it to the correct amount? 

I'm pleased to welcome you to the Community, Jolder.

To effectively adjust the contribution limit in QuickBooks Online for employees over 50 participating in a Simple IRA, we will set up a new contribution called Simple IRA Catch-up. This approach allows your employees to contribute the additional amount authorized by the IRS without altering the existing contribution limit.

Here's a step-by-step guide to do this:

1. Go to the Payroll tab on the left menu bar, then Employees.
2. Select Edit payroll items.
3. From the New payroll item dropdown, select Deductions & Contributions.
4. Choose the Retirement Plans category and SIMPLE IRA Catch-up as the deduction type, then Create.
5. Click Assign employee(s) to add all qualified employees, then hit Next.
6. Enter the contribution amount or percentage per pay period.
7. Finally, click Save.   

This will update the contribution limit to $19,500 for your employees who qualify for the catch-up contributions.

Additionally, I recommend checking out these articles to help you efficiently manage your deductions and contributions using QuickBooks Payroll:

• Set up or change a retirement plan.
• Set up and manage company contributions.

We're here to assist you with other payroll concerns, including managing payroll deductions, payroll reports, or related matters. Just leave a comment below, and we will promptly assist you.