How can I change the maximum limit for simple IRA employee contribution? It is grayed out at $15,500 employee is 50 years old should be able to contribute $3500 more

new business owner 1 · ‎December 16, 2023

Rubielyn_J · ‎December 16, 2023

I understand your worry about changing the current simple IRA to catch up and the fear of deleting the employee's previous contributions. I'm here to ensure all contributions are accounted for and handled correctly.

Editing the contribution in QuickBooks isn't available. The only option is to delete the old setup and create a new one, as QuickBooks does not allow the same type to be used simultaneously.

If you delete the simple IRA and create a new IRS catch-up, it will stay there and won't be affected. The old one won't work if the limit has been reached, so you need to delete it and create a new one so that it can be deducted again with that catch-up limit.

Here's how:

Navigate to Payroll, then Employees.
Choose your employee.
From Deductions & contributions, select Edit.
Select the Trash bin icon to remove the contribution.
Click Save, then Done.

Once done, create a new contribution in your QBO account. For detailed steps, you can utilize this article: Set up and manage company contributions.

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

Keep me in the loop if you have further queries about managing and setting up your company contributions in QBO. I'm here to help make sure we get this configured properly without disrupting anything you've already set up.

View solution in original post

Ethel_A · ‎December 16, 2023

Hello there, @new business owner 1.

I'll help you change the maximum limit of the Simple IRA contribution for the employee who is above fifty years of age.

You need to choose the exact type of contribution for the employee so that they can have the maximum limit of $19000.

Here's how:

From the left menu, go to the Payroll tab.
Choose Employee and locate or add the employee you want to modify.
Add or edit contributions, select Deduction & Contribution.
From the Deduction & Contribution Type tab, choose a retirement plan.
Select the Simple IRA catch-up from the drop-down. It should now show the Annual maximum limits as $19,000.
Then, choose other required details from the drop-down and hit Save.

Here is an article about retirement plan contribution limits: Set up or change a retirement plan.

If you have questions about employee retirement contributions, don't hesitate to click the Reply button below. I'm always here to help. Have a great day.

new business owner 1 · ‎December 16, 2023

Hi Ethel,

I was able to find the simple IRA catch up you mentioned but it will not allow me to change the current simple IRA to catch up. When I tried to create a 2nd option it states I can not create regular and catch up of the same type. If I delete the simple IRA and create a simple IRA catch up what happens to the previous contributions employee has already made this year?

new business owner 1 · ‎December 16, 2023

Hi Ethel,

Thank you. I was able to locate the simple IRA catch up as you mentioned but it would not allow me to change the current simple IRA to catch up. It will not allow me to create a simple IRA catch up without removing simple IRA already there and I was hesitant to do that because I was afraid it would delete the previous contributions this employee has already made. What do I need to do?

Rubielyn_J · ‎December 16, 2023

Hello there, @new business owner 1.

I understand your worry about changing the current simple IRA to catch up and the fear of deleting the employee's previous contributions. I'm here to ensure all contributions are accounted for and handled correctly.

Editing the contribution in QuickBooks isn't available. The only option is to delete the old setup and create a new one, as QuickBooks does not allow the same type to be used simultaneously.

If you delete the simple IRA and create a new IRS catch-up, it will stay there and won't be affected. The old one won't work if the limit has been reached, so you need to delete it and create a new one so that it can be deducted again with that catch-up limit.

Here's how:

Navigate to Payroll, then Employees.
Choose your employee.
From Deductions & contributions, select Edit.
Select the Trash bin icon to remove the contribution.
Click Save, then Done.

Once done, create a new contribution in your QBO account. For detailed steps, you can utilize this article: Set up and manage company contributions.

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

Keep me in the loop if you have further queries about managing and setting up your company contributions in QBO. I'm here to help make sure we get this configured properly without disrupting anything you've already set up.

new business owner 1 · ‎December 18, 2023

Thank you Rubielyn_J for your help. That worked!

JessT · ‎December 18, 2023

Hi new business owner 1!

I'm glad that my colleague Rubielyn_J was able to assist you with your IRA contribution issue in your payroll. If you have any other concerns, please feel free to return to this thread. Take care and have a great day!

officemmplumbingheating · ‎December 26, 2023

we have enhanced desktop payroll and no payroll tab how would we change

Kurt_M · ‎December 26, 2023

Thanks for joining the thread, @officemmplumbingheating. We'll help you locate and modify your current simple IRA setup inside QuickBooks Desktop (QBDT).

Before anything else, please know that the steps provided by the previous representative are for QBO users. Thus, it's the reason you don't see the Payroll option on your end. For QBDT users, these are the steps:

Access your QuickBooks Desktop company.
Go to the Employees menu.
Select Payroll Center.
Choose an employee, and then go to the Payroll Info tab.
Go to the Additions, Deductions and Company contributions section. If you wish to get rid of the current setup, erase the item. In case you wish to modify the amount, update the current amount of the payroll item.
Once done, click the OK button.

Furthermore, you may want to generate a report to help you review data entered inside the company file. Feel free to check this page: Understand reports.

We look forward to having you here again if you need help managing payroll items inside QuickBooks, @officemmplumbingheating. Feel free to visit us anytime. Keep safe.

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How can I change the maximum limit for simple IRA employee contribution? It is grayed out at $15,500 employee is 50 years old should be able to contribute $3500 more