Hi, connie-cbpurserm.
I'm here to address your concern about adding a 401k catch-up contribution to payroll.
The default limit for the 401(k) is $23,000. For employees over 50 years, we can set up 401(k) Catch-up for the additional $7, 500 for a total of $30, 500, which is the limit for the year 2024.
When adding the 401(k) Catch-up, ensure not to edit or delete the prior 401(k). This is the basis when QuickBooks Online Payroll will calculate the catch-up. Please know that the system will calculate it once you reach the 401(k) limit.
- Go to the Payroll menu and select Employees.
- Click the employee's name, then Edit employee from the Deductions & contributions section.
- Select + Add contribution.
- Locate the 401(k) Catch-up you added and click the Edit icon.
- Complete the remaining fields.
- Tap Save, then Done.
If you encountered an issue when adding the catch-up contribution, would you mind telling us more about it? This way, we can provide you with an accurate resolution.
To understand more about yearly retirement plan contribution limits, please visit this article: Understand retirement plan contribution limits.
Also, this resource can help you if you need to change a payroll deduction item in QuickBooks: Change or delete a payroll deduction item.
We are always available to answer additional questions about your employee's contributions and deductions. Just click the Reply button below. Take care always.
