I'd like to add a lower max $ amount in the Roth 401(k) catch-up employee contribution section. set it to $8K starting in 2026, but QB defaults to $31k. seems wrong.

The Roth 401(k) Catch-up contribution limit in QuickBooks adheres to current IRS guidelines and cannot be adjusted manually, NH23.

Know that QuickBooks is working closely with the IRS and adheres to the maximum Roth 401(k) catch-up contribution limit to ensure compliance with tax regulations. Rest assured, our system will implement any IRS updates to employee retirement contribution plans.

On top of that, you can periodically refer to this article for the updates on employee contribution limits for 2026 in QBO: Set up or change a retirement plan.

This thread remains open if you have additional questions about setting up QBO retirement plans.

I think you're misunderstanding the maximum contribution limits and need to make a change, or point me to the correct dropdown option.

Starting in 2026, any employee who has earned >$145K in salary the previous year < and > is over age 50 cannot contribute their 'catch up' elective deferral of $8K into the regular tax-deferred portion of their 401(k) company retirement plan.  Their $8K catch up has to go into a Roth 401(k) portion of the plan. 

I don't want an employee's entire $32,500 ($24,500 pre-tax + $8K after-tax dollars) to get tagged as a Roth 401(k) contribution.  This looks to be the only choice QB offers.

Ideally, there are 2 retirement deferrals happening with my high-earners' paychecks:

A.  $24,500 divided by 24 pay periods into the existing regular 401(k) plan (pre-tax $), so $1,020.83 each payroll; and 

B. $8,000 marked as a Roth 401(k) contribution (after-tax $) into our company retirement plan, so $333.33 each payroll.

Thanks,

Nancy

Hi, Nancy.

Thank you for sharing detailed information about the adjustments to contribution limits for the 2026 tax year. We appreciate the time you’ve taken to share this, as keeping informed allows us to better support businesses like yours.

Since this change applies to the next tax year, please note that QuickBooks Online (QBO) will update its system to reflect any adjustments implemented by the IRS to ensure compliance. Our platform is designed to adapt to regulatory updates and accurately support employee retirement contributions in line with IRS guidelines.

Rest assured, any mandated changes affecting tax filing or retirement plans will be incorporated into QBO, ensuring accurate and compliant reporting for your employees.

If you have additional questions or need further assistance, feel free to let us know in the thread. We’ll continue supporting you every step of the way.

I have a similar question...For 2026, will the 401(k) Catch-up Contribution (60-63) payroll item automatically start taxing the catch-up contributions for high-earners (over $150k/year) once the regular contribution limit of $24,500 is met?  Or do I need to set up 2 separate deduction items - one for the regular contribution & a separate one for the catch-up amount & if so, should I use the After-tax Roth 401(k) Catch-up (60-63) payroll item?

I have the same question. Would be great if Intuit could give us an answer.

I have the same question. Would be great if Inuit could give us an answer.

Hi JoopLa,

Thank you for reaching out about the Roth 401(k) catch-up contribution limits. I’d be happy to provide some clarity and assurance.

If you are referring to lowering the limit the Roth 401(k) catch-up deductions or contributions, please note that our system adheres strictly to their guidelines, so these limits can't be manually adjusted.

QuickBooks works closely with the IRS to ensure compliance with the latest regulations. Our system is regularly updated to reflect any changes to tax filings or retirement plans, keeping your employees’ reporting accurate and compliant.

We truly value your trust in QuickBooks and are here to support you every step of the way. If you have any further questions or need additional guidance, please don’t hesitate to reach out. We’re always happy to help!

This did not answer our question. Do we need to manually make switches when the $24,500 limit is hit by HPIs or will QBO automatically do it? Or do we have to set up two separate ones from the start? Since we can't edit the maximum amounts for either one, how will QBO know when to stop?

Hi, Megan. I can see how that might leave you feeling frustrated and seeking more clarity. Please note that QuickBooks won’t automatically flip a switch from pre-tax to Roth, so you’ll need to handle it manually in two stages.

Once the employee hits the first limit ($24,500), the system will stop their deductions. You will then manually swap their old "Pre-tax" item for a new "Roth Catch-up" item to finish out the year.

Step 1: Set up After-tax Roth 401 (k) catch-up (60-63)

1. Go to Payroll and select Employees.
2. Choose the employee and select Edit in the Deductions & contributions section.
3. Select + Add deduction/contribution.
4. Deduction/contribution type: Select Other deductions.
5. Type: Select Other after-tax deductions.
6. Description: Enter "After tax Roth 401k catch up (60-63)."
7. Enter the employee's contribution rate.
8. Select Save.

Step 2: Set up the Employer Match (If applicable)

Note: Employer matches for Roth plans are generally still pre-tax.

1. In the same Deductions & contributions section, select + Add deduction/contribution.
2. Deduction/contribution type: Select Retirement Plans.
3. For the Type: Select After tax Roth 401 (k) catch-up (60-63).
4. Company contribution: Set the match (e.g., 3% matching).
5. Employee deduction: Set this to $0 (since you are using the manual Roth item for the employee portion).
6. Select Save.

Step 3: Year-End Verification

Because the "Other after-tax deduction" does not automatically trigger Box 12 Code S, you'll need to review your Payroll Detail report at year-end to total the Roth contributions.

If the W-2 does not display the amount in Box 12 with Code AA, I recommend contacting our live support team to have the "Tax Tracking Type" updated through a backend amendment.

I’ll ensure this conversation remains open for any future updates and discussions.

My question is in reference to a 401(k)/Roth 401(k) plan, not a SIMPLE IRA. I can see where you could set up a regular 401(k) contribution that has the pre-set limit of $24,500 and then a separate After-Tax Roth 401(k) Catch-Up contribution to fulfill the rest, but the second one has a pre-set limit of $35,750 that can't be changed. Will QBO know when the total $35,750 has been reached and cut off all contributions? Do they have to be run concurrently? Or do you manually have to start the catch-up after the original has been met? What if contributions have already been made this tax year to a different payroll item?

Yes, the workaround is for the Roth 401(k), Megan. Thank you for pointing that out. I have already asked my colleague to update his response.

Regarding your questions, QuickBooks Online (QBO) automatically tracks the total amount deducted across all 401(k) types and stops contributions at $35,750. Then, you shouldn't set them up concurrently yet. You need to wait until the first contribution hits or is about to reach the $24,500 limit before setting up the After-tax Roth 401(k) catch-up (60–63).

If you've already set up contributions using a different payroll item and have processed payroll this year, please contact our support team for corrections.

Please let me know if you have any further questions about the Roth 401(k) catch-up workaround.

I just got off a call with support, and they asked me to set up both a Solo 401(k) and a Roth 401(k) Catch-Up (age 60–63). I’d like to confirm the correct way to configure these deductions.

Currently, the Roth 401(k) Catch-Up (60–63) is showing an annual maximum of $35,750. Could you please clarify whether this is correct and how the deductions should be set up so that the contributions are calculated properly?

Thank you for your help.

Hello, @ApicalApps. QuickBooks Online (QBO) Payroll is designed to stay current with the latest IRS guidelines for 401(k) plans, including both standard and catch-up contributions. The annual maximum you see for the Roth 401(k) Catch-Up (ages 60 to 63) of $35,750 is correct per the 2026 IRS limits, which QBO automatically follows. For the Solo 401(k) (set up in QBO as a regular 401(k)), the maximum annual limit is $24,500.

Keep in mind that the exact contribution calculations in QBO will depend on how you set up the calculation method. Within the Deductions and Contributions section of the employee profile, you can choose a Flat amount, a Percentage of gross pay, or Per hour worked.


Let me know if you have any other questions. I am happy to help clarify anything!