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MyPro CFO
Level 2

Roth Simple IRA payroll plan deduction setup

Employers must allocate any contributions to match designated Roth contributions into a pre-tax account. (i.e., traditional SIMPLE IRA contributions). If you don't yet have this, you can use the existing payroll item for these contributions or set up a new company contribution payroll item.

 

source: https://www.irs.gov/retirement-plans/retirement-plans-faqs-on-designated-roth-accounts 

SB719
Level 3

Roth Simple IRA payroll plan deduction setup

Tried to "cheer" your response and couldn't... kept getting an "authentication failed" message... IMAGINE THAT!! 

jeremy77
Level 3

Roth Simple IRA payroll plan deduction setup

Is this a possible workaround? Setup another deduction, name it Simple Roth, select "Simple IRA" as tax tracking type, but then uncheck all the taxes that get affected. Both Simple and Simple Roth report to box 12 on the W2 as code S. The only question then seems to be would it still reduce wages in box 1, even though you uncheck not to affect any taxes?

ZackE
Moderator

Roth Simple IRA payroll plan deduction setup

Thanks for joining this thread, jeremy77.
 

To properly identify if your proposed workaround works for your business, I'd recommend working with a tax professional.
 

If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.
 

I've also included a detailed resource about working with retirement plans which may come in handy moving forward: Set up or change a retirement plan
 

Please don't hesitate to send a reply if there's any additional questions. Have a wonderful Tuesday!

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