How do I change the 401k contribution limit for an employee to include the catch up?

We can add a new deduction, mike164.

You don't need to edit the 401(k) contribution you've already set up. Instead, we can set up a new contribution which is the 401(k) Catch-up. You can follow these steps:

1. Go to Workers tab and select Employees.
2. Select the employee's name, then Edit employee.
3. On the deductions section, click +Add a new deduction.
4. Choose Deduction/contribution > New deduction/contribution > Retirement Plans > 401(k) Catch-up.
5. Enter the amount per pay period. Click OK to save.

You can also read these guide about retirement plans. These will give you more details on how to handle deductions/contributions.

• Retirement plan deductions/contributions

• Retirement Topics - Contributions

Always keep in mind that QuickBooks Community Team is here to help you. Comment below if you need anything else.

I followed these steps to add a new catch up item however I noticed when I filed W2 the catch up item is deducting from net pay instead of gross pay.   Any insight?

Hello, @rcpcnh.

I can see that you’ve posted this question a couple of times and my colleague already added an answer. If you haven’t notified with the response, check this link.

I'm always here if you need anything else. Have a wonderful day!

I followed the directions on how to setup a new deduction for the 401k catchup.  When I click on save it wont save and gives me a message "You cannot select Regular & Catchup deductions of the same type.

Am I entering something wrong?  How can I get this to work.

Hello there, @Mike19672. We appreciate you following the steps above in setting up a new deduction for the 401k Catch-up. Let us share some insights on why the error occurs and how you can get this to work.

We understand the importance of managing your deductions in our program without issues. 

In your case, you may have already set up a 401 (k) deduction, that's why you'll get prompted with "You cannot select Regular & Catch-up deductions of the same type" since it's not possible to have two 401 (k) deduction type for one employee. If you want to change it to 401 k Catch-up, you'll want to delete the other 401 (k) plan type. We'll guide you through the process below.

To delete Deductions and contributions:

1. Go to the Payroll tab and select Employees.
2. Select the employee's name.
3. From the Deductions & Contributions section, click Edit. 
4. Choose the deduction you want to remove by clicking the Trash bin icon.

Once done, you may want to add a new 401k Catch-up retirement plan. See the steps below:

1. Go to the Payroll tab and select Employees.
2. Select the employee's name.
3. From the Deductions & Contributions section, click Edit. 
4. Click the + Add deduction/contribution.
5. In the Deduction/contribution dropdown arrow, select the + Add deduction/contribution.
6. Choose Retirement plans in the Deduction/contribution type.
7. On the Type dropdown, choose 401 (k) Catch-up.

See the screenshot below for visual reference:

Additionally, you can refer to this article to learn how to set up a retirement plan deduction or a company contribution in QuickBooks Online Payroll to track and tax it appropriately: Set up a retirement plan.

Moreover, we'll also include these links about the yearly retirement plan contribution limits and managing payroll reports:

• Understand retirement plan contribution limits
• Run payroll reports

We're just a post away if you have clarification about the information we've shared above and other QuickBooks concerns. We'll always be happy to help you. Have a good one, @Mike19672!

I too am experiencing issues with the 401k Catch deduction type.  I have set the deduction as described and it does capture the employer contribution amount, but it does not deduct the employee amount at all.

I too am experiencing issues with the 401k Catch deduction type.  I have set the deduction as described and it does capture the employer contribution amount, but it does not deduct the employee amount at all.

I believe the issue is that you cannot have a 401k and a 401k catch up deduction assigned to the same employee.  You have to have one or the other.

Hi 656497,

I've got your back in ensuring the 401K catch-up deduction is deducted from your employee's paycheck.

Let's make sure that the mentioned payroll deduction was set up on the employee's profile. You can follow the steps below.

1. Select Employees from the Payroll tab.
2. Click the employee's name.
3. Click Edit on the Deductions & contributions section.
4. Locate the 401 (k) catch-up item, and then click the Edit (pencil) icon.
5. Under Employee deduction, select one on the Calculated as field.
6. Enter the Amount per paycheck.
7. Click Save, then Done.

Furthermore, don't hesitate to pin these articles as your guide in completing the year-end tasks:

• Understand retirement plan contribution limits
• Year-end guide for QuickBooks Online

I'm always around whenever you have payroll concerns.

I spent 90 minutes this morning to try to get this fixed.  I cannot fix it on my end, they cannot get it to work right their end.  This is ridiculous.

I understand how inconvenient to have spent so much time trying to resolve this issue without success, Scott. Allow me to share additional steps to set up the 401k Catch-up.

First, you need to delete the other 401 (k) plan type if you've created one. This is because it's not possible to have two 401 (k) deduction types for one employee. To delete Deductions and contributions, follow these steps:

1. Go to the Payroll tab and select Employees.
2. Select the employee's name.
3. From the Deductions & Contributions section, click Edit. 
4. Choose the deduction you want to remove by clicking the Trash bin icon.

Once done, add a new 401k Catch-up retirement plan. Here's how:

1. Go to the Payroll tab and select Employees.
2. Select the employee's name.
3. From the Deductions & Contributions section, click Edit. 
4. Click the + Add deduction/contribution.
5. In the Deduction/contribution dropdown arrow, select the + Add deduction/contribution.
6. Choose Retirement plans in the Deduction/contribution type.
7. On the Type dropdown, choose 401 (k) Catch-up.

For more information, check out this link: Set up or change a retirement plan.

Moreover, you may run payroll reports to view your financial records.

If you have further questions or concerns about setting up a contribution in QuickBooks, comment down below. The Community team is here to provide the necessary help.

The only thing I can confirm is the frustration.  One being that it doesn’t work as intended and the second, worst part is dealing with the ‘customer service’ which is anything but.