Employee Roth Contributions for SIMPLE IRA

Hi there, @Lstall31.

Currently, you can only set up SIMPLE IRA contributions in QuickBooks Desktop. This is because a SIMPLE IRA cannot be a Roth IRA as per the IRS. You can read more about the SIMPLE IRA plan on the IRS website.

If you wish to proceed with setting up a SIMPLE IRA payroll item, you can follow the steps below.

1. Go to Lists, then press Payroll Item List.
2. Click the Payroll Item dropdown, then choose New.
3. Select Custom Setup, then Next.
4. Select Deduction or Company Contribution, then Next.
5. Enter the name of the deduction or company matching item, then click Next.
6. Select the name of your retirement plan provider, or add it, and enter the account number. In the Liability account field, select the account that tracks the deduction or contribution to be paid. Select Next.
   • For company match items, in the Expense account field, select the account that you want to track the item. Select Next.
7. In the Tax Tracking Type window, select the applicable retirement plan. Select Next twice.
8. Under Calculate based on quantity, select Neither and select Next.
9. Leave the Default Rate and Limit fields blank. You can add the rate and limit when you add the item to the employee profile
10. Tap Finish.

Once done, add the items to the employee profile. Here's how:

1. Go to Employees, and then hit Employee Center.
2. Select your employee.
3. Select Payroll Info, then add the retirement plan items in the Additions, Deductions, and Company Contributions section.
4. Enter the amount per period and the limits.
5. Select OK, when you're done.

For more information on setting up a retirement plan, check out this article: Set up or change a retirement plan. You can also find detailed steps on how to edit a plan in it.

If you ever need assistance with filing your taxes using QuickBooks, these resources will come in handy for you:

• Create and file 1099s with QuickBooks Desktop
• File your W-2 and W-3 forms

If you have any other concerns regarding setting up a retirement plan or filing your taxes, please feel free to leave a reply below. The Community is always available to offer assistance and support for any additional help you may need.

As @Lstall31 pointed out, the IRS now allows (as of January 2023, a year ago) a Roth Simple IRA. So the question remains, how can such a retirement plan be properly setup within Quickbooks Desktop?

Hello there, jzp1.

Please know that QuickBooks Desktop allows you to set up various retirement plans. However, creating a Roth Simple IRA in the application is still unavailable. This is because a SIMPLE IRA cannot be a Roth IRA based on the IRS regulations. You can refer to this website to see further details: IRS website. I'll ensure you can send feedback so your suggestion is passed to our Development Team.

I suggest submitting ideas regarding the ability to set up a Roth Simple IRA in QuickBooks to manage the retirement plan you need. The recommendations are sent to our engineer for consideration in future updates. 

Here's how:

1. Choose the Help option and select the Send Feedback Online option.
2. Select the Product Suggestion option. A pop-up window displays.
3. Enter your feedback suggestion.
4. Click the Send Feedback button. The feedback is sent.

While waiting for the said plan to be available in QuickBooks, you can choose the supported retirement below as a workaround.

• 401(k) / 401(k) catch-up
• Simple 401(k) / Simple 401(k) catch-up
• 403(b) /403(b) catch-up
• SARSEP / SARSEP catch-up
• Simple IRA / Simple IRA catch-up
• After-tax Roth 401(k)
• After-tax Roth 403(b)
• Company-only plan

Then, you can follow the methods outlined in this article to manually set up those plans in the program: Set up or change a retirement plan.

Additionally, run a company contribution report to track your company-paid contribution. For more details, you can review this link: Run payroll reports.

Please don't hesitate to mention my name in the comment section below if you still have concerns related to my retirement plan. I'll make sure to get back to you as soon as possible, jzp1. Have a good day, and be safe!

Thank you @ChristieAnn , I guess the issue is that as far as I can tell, two IRS websites have contradictory information. In the one you linked in your answer it says "A SIMPLE IRA cannot be a Roth IRA". However, in another location where it discusses 2022 Secure Act 2.0 it says, A SIMPLE IRA can be set up as either pre-tax (traditional) or after-tax (Roth). Looks like a question for my accountant.

Has anyone found a way to properly add these deductions to QuickBooks payroll?? Since a Roth Simple IRA is not an option. 

Hi AnneMariee, I am inquiring about any payroll updates to accommodate the new changes, making Roth Simple IRA's is now going into effect. I have just run a payroll update and couldn't see anything available option. Do you know if there will soon be a payroll update to accommodate a Roth Simple IRA?

Hi AnneMariee, I am just inquiring about any update regarding this issue since this will be changing in 2025. Do you know of any updates in the works to accommodate the new Roth Simple IRA option?

Setting up a Roth Simple IRA is still not available in QuickBooks Desktop Payroll, Lisa. Allow me to provide some additional context about this.

Our Compliance Team is already working on implementing these changes to ensure that QuickBooks Desktop Payroll fully aligns with the new requirements. The process involves careful consideration and integration of the complex regulations introduced by SECURE 2.0.

To help you stay informed about the implications of this new legislation, I recommend reviewing the following resources that provide detailed information about this:

• SECURE Act 2.0: Small business owner guide and key retirement changes
• Consider a Roth IRA for a less taxing retirement

We'll definitely let you know once we have everything for Secure 2.0. Then, ensure to install a payroll update once you receive a prompt in QuickBooks that a new one is available. Here's an article to guide you: Get the latest tax table update in QuickBooks Desktop Payroll.

In the meantime, I'll share this article in case you need additional guidance while going through your payroll-related year-end tasks: Year-end checklist for QuickBooks Desktop Payroll.

We appreciate your patience as we work to incorporate these important updates. The Community is always available if you have any questions or challenges while managing employees in QuickBooks. It's a great place to seek advice, share experiences, and receive support from both the QuickBooks Team and other users.

Is this change also going to be implemented in QBO Payroll?  We will be running a payroll this week and need this option available for some of our employees.  Will there be a way to retroactively add the Simple Roth deductions/contributions that are missed because Quickbooks is not up-to-date?

Currently, there are no significant details on whether the payroll service will include Roth Simple IRA in QuickBooks Online (QBO) Payroll, @tlh121018.

Integrating this payroll item into the program would assist many users in tracking their retirement contributions more effectively. For now, I suggest sharing your ideas with our product development team. They can evaluate your feedback and may consider implementing changes in the next update.
Here's how:

1. Go to the Gear icon at the top.
2. Select Feedback.
3. Type in your feedback and product suggestions.
4. Click Next to submit them.
    

Additionally, once the Roth Simple IRA is implemented in QBO Payroll, QuickBooks will not automatically adjust the next payroll for any missed Simple Roth contributions. However, you can make adjustment manually by adding maximum amount from the Annual Maximum tab in your deduction and contribution item.



After that, you'll need to create Simple IRA catchup contributions for the missed contributions and deductions. 

Here's how:

1. Go to Payroll, then select Employees (Take me there).
2. Select your employee.
3. In the
4. From Deductions & contributions section, select  Edit.
5. Click the + Add deduction/contribution.
6. From the Deduction/contribution type dropdown.
7. Select Retirement plans and choose the Type.
   
8. Fill out all the necessary information then, click Save.

Please know that in your W2 you'll see a double lines for these contributions and I suggest consulting with your accountant to ensure the accuracy of your books. If you’re not affiliated with one, you can check our ProAdvisor page and we’ll help you find there.

Furthermore, you can refer to these articles for future reference in managing payroll reports and guidance on wrapping up this year’s payroll and preparing for the next with QuickBooks Online Payroll:
 

• Run payroll reports
• Year-end checklist for QuickBooks Online Payroll
   

Please keep me posted if you have any further questions or concerns about handling payroll deductions in QuickBooks. I'm always here to help you. 

Can you email all users when the SIMPLE ROTH IRA is added. My retirement custodian has added this to our retirement plan and we adopted it.  Now all my employees have signed up for the ROTH version of the SIMPLE IRA plan.  I understand from your post that your programming is the issue.  All retirement custodians have caught up and are allowing contributions for the 2025 calendar year.  SO please speed things up.  I see that many users are inquiring as well.  This seems to me to be an issue with INTUIT being slow and far behind other financial institutions.  We need this up and running ASAP before I run payroll on for January 2025.   

We know it is handy to simple Roth IRA in QuickBooks Desktop Payroll, Jerryboda. I'll provide information about your retirement plans.

We understand that you have been anticipating the release of this feature for QuickBooks Desktop. However, we're unable to share a specific period of when the feature will be added.

For the latest updates on feature availability, you can check the Recently Updated Ideas section located on this page: QuickBooks Online Feature Requests.

Furthermore, QuickBooks Desktop continuously aims to enhance its features to provide an optimal experience. We encourage you to share your suggestion with our product development team.

For more information on setting up a retirement plan, check out this article on how to manage your retirement plan in QBDT: Set up or change a retirement plan.

Additionally, I'll share this article in case you need additional guidance while going through your payroll-related year-end tasks: Year-end checklist for QuickBooks Desktop Payroll.

If you have further concerns about your SIMPLE IRA plan, you can always share your comments in this thread. I'll be right here to assist you.

Agree 100% - now WE have to do extra work to make sure that the employees are set up correctly AFTER Intuit finally decides to add something that is time sensitive.

Can we please stop with the auto-bot responses, Intuit??  It's unacceptable that a Simple Roth option is not available in Quickbooks!    (And the fact that you tell people to use Quickbooks Desktop after Intuit forced me off the desktop version several years ago is frustrating to say the least)  

Exactly when will the Roth Simple option be available??   As much as we pay Intuit for all the subscriptions and payroll services, I am very disappointed that 2 years after Roth has been approved as an option for Simple IRAs, you still don't have it ready and available... nor do you even have an ETA for it. 

Please do better.     

Quickbooks - 

Has this been added? SECURE ACT 2.0 came out over a year ago. I see there are multiple people asking about this as well, a week+ ago, and still no response.

When will the ROTH SIMPLE IRA get added to our retirement options?

The time and effort you dedicated to joining this conversation is much appreciated, JM1S. We value your involvement and recognize that you have been looking forward to the launch of this feature.   

As of now, we're unable to provide a specific timeline for when the Roth Simple IRA will be added to the retirement options available in QuickBooks.

In the meantime, I recommend submitting your feature suggestions directly to our Product Development Team. Your recommendations and suggestions are valuable to us as they help us identify areas we can improve. Our Development Team will review your suggestion for further consideration. 

If you have QuickBooks Desktop (QBDT), refer to the steps outlined below:

1. Locate the Help option.
2. Choose the Send Feedback Online option.
3. Select the Product Suggestion option. A pop-up window displays. Enter your feedback suggestion.
4. Click the Send Feedback button.

However, if you have QuickBooks Online (QBO), I'll show you how you can send one: 

1. Locate the Gear icon.
2. Under Profile, choose Feedback.
3. Enter your feedback suggestion.
4. Hit the Next button.

You can stay up-to-date with the latest news about product enhancements by reviewing Intuit's Product Updates webpage.

Finally, I've included a few resource guides to help you learn how to generate payroll reports for monitoring your contributions and deductions and how you can wrap up this year’s payroll and prepare for the next:

• Run payroll reports
• Year-end checklist for QuickBooks Online Payroll
• Year-end checklist for QuickBooks Desktop Payroll

Your input is essential for addressing the challenges you encountered and improving our services. I'll be here if you require additional information about setting up retirement plans in QuickBooks.

I have been calling and sending requests since October and was first told could not do it and given IRS website then told to submit feedback request and still nothing.  Now I really need this option for payroll Thursday and its not going to be available.  I really expected more from QuickBooks to be up to date on these kind of things.  This is what you guys do and millions of us pay you good money to stay up to date on.

I have been on chat with QB's and had screen time with the same question for the last half hour.  If the IRS has allowed this option then Quickbooks should set up a new tax tracking type so we can add Roth Simple IRA  to the new deduction.  I have had to add Roth 457 to this Roth deduction in order to remove the federal tax exempt calculation.  

I just asked the same thing today!  Spent a half hour with them. It is not an option and it should be!

Yes, I was on with them for over an hour yesterday. I have also sent the "feedback" that is told to me every time I call 3-4 times. Its extremely frustrating with how much we pay to not have an update that was passed over a year ago. 

I may be overly cautious, but I would be careful listing it as a 457 contribution. Rules around the amount of sponsored plans people can contribute to each year, as well as contribution limits (if you have employees who are maxing) could possibly create headaches down the road for you. It may be fine to do, but I personally would not do that for us.

Yes, I spent an hour on the phone with them between multiple associates. I also had a couple of chats and its crazy that they haven't updated it, nor have figured out a work around. I think I have sent in 3-4 of the Feedback tickets as well, trying to get them to understand the importance of getting this updated.

I may be overly cautious, but I would be careful changing the type of retirement plan to 457. You are the limited to the number of plans you can sponsor, as well as they have different levels of max contributions (if you have any employees who are funding that much) that it may be a headache in the future to get that straightened back out. Personally, that is not something that I would do with ours. YMMV.

That was the suggestion of Quickbooks chat. I am not happy about it, and I dont understand why I cant make a new type, or why they cant.  What are you all doing if you dont use one of the Roth types listed?  Can I use that type for now, and change it when I file W-2's for 2025?  Surely Quickbooks will figure it out by then!!!!

I am having the same struggles with the chat and on the phone. The last person I was chatting with left the chat when I asked about a possible work around. I reached out to our accountant and they suggested doing a simple paycheck "deduction" and label it as Roth Deferral so we can get the correct amount on our paychecks and into the employee's retirement accounts on time until QB sorts this out. Sounds like it will be a headache on the back end to get this corrected but I need to run payroll by the end of the day today.