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sarahc2223
Level 1

Traditional IRA Contributions

I am looking for guidance on how to handle the following issue in QBO Payroll:

 

- I have an employee that contributes to two separate retirement plans in his paycheck:

1) a Simple IRA with Company matching

2) a traditional IRA (rolled over from a previous employer) that has no Company matching

 

Each of this retirement plans has separate (& different) annual contribution limits and it is my understanding the the annual contribution limits between the two plans are NOT cumulative:

1) Simple IRA - $13,500 annual contribution limit

2) traditional IRA - $6,000 annual contribution limit

 

Currently, both are set up in QBO Payroll as deductions in his paycheck. HOWEVER, we have run into the following problem:

- When the previous accountant set up the deduction for the traditional IRA, there was no option available to select for traditional IRA, so she instead selected the option for Simple IRA. Therefore, QBO Payroll currently is classifying BOTH of the IRA deductions as Simple IRA deductions. This is an issue because it messes with the contribution limits. QBO Payroll is currently taking the sum of the two deductions and capping the sum out at $13,500. This is artificially limiting the contributions that the employee is able to make. I am now trying to figure out how to remedy this such that the employee is able to contribute the maximum for each of the two plans before the end of the year.

 

Any advice on the best way to handle? Can QBO Payroll add a selection for traditional IRA? Can I somehow change the contribution limits in QBO (they are currently automatically added by the system)?

 

 

2 Comments 2
JD1234325
Level 1

Traditional IRA Contributions

Hey Sarah,

 

excellent question! I’ve sat on hold for hours trying to figure this exact same thing out. It seems quickbooks can’t handle these problems yet. 

MichelleBh
QuickBooks Team

Traditional IRA Contributions

This is not the kind of experience I want you to experience, @sarahc2223

 

Thanks for elaborating on the situation here in the Community. You're in the right information that the annual contribution limits for Simple IRA and Traditional IRA are not cumulative. 

 

As of now, adding a selection for traditional IRA in QuickBooks Online Payroll is unavailable. Also, regarding the annual contribution limits, there isn't a way to adjust it in the system. And yes, this is automatically added to your account.

 

For more information, check out this article: Retirement Topics - IRA Contribution Limits. 

 

Since the previous paycheck has been deducted, I'd suggest calling our Customer Care Team. So, they can remove the other amounts in your account. 

 

Here's how: 

 

  1. Got o the Help menu, then choose QuickBooks Desktop Help
  2. Hit the Contact Us button. 
  3. Click QuickBooks Desktop tile or type contact us in the description field. 
  4. Hit Message Us

For more information, visit this article: Contact QuickBooks Desktop support. Also, check out our support hours and types to ensure we address your concern on time. 


Additionally, browse through this article about the limits on contribution and benefits. 

 

 

This isn't also the kind of experience we want you to feel, and I'm here to make it up with you, @JD1234325.

 

With this case, I'd also suggest calling our QuickBooks support again to re-investigate the problem the root cause. 

 

You can also check the links that I've provided above for more information about deductions. 
 

Let me know how it goes by clicking the Reply button below. I'm always here to help. Take care always, @JD1234325, & @sarahc2223

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