How do I change the Simple IRA limit to $21,750 in QBO payroll for employees aged 60 and 61 for this year 2025?

Editing the Simple IRA limit is unavailable in QuickBooks, horserider. However, we can set up a new one to ensure your contributions and deductions are accounted for correctly.

The reason this field is grayed out is that QuickBooks ensures compliance with IRS-defined limits for the current tax year. Therefore, you will need to create a new Simple IRA catch-up and delete the previous setup since the software doesn't allow the same deduction type to be used simultaneously.

Here’s how to remove the existing deduction:

1. Log in to your QuickBooks account.
2. Go to My Apps, then Payroll.
3. Select Employees.
4. On the employee list, open your employee's profile.
5. Head to the Deductions and contributions tab, and click Edit.
6. Click the trash bin icon next to the existing retirement plan in the Deductions and Contributions section.
7. Once done, click Delete.

After deleting the previous deduction, follow these steps to set up a new one with the correct limit:

1. On the Edit deductions and contributions page, click the + Add deduction/contribution.
2. Then, click the + Add deduction/contribution on the Deduction/contribution dropdown.
3. Select Retirement plans on the Deduction/contribution type.
4. Choose SIMPLE IRA Catch-up (30-63) on the Type dropdown.
5. After that, add other necessary information.
6. Once done, click Save.

For reference, you can review this article: Set up and manage company contributions.

To maximize your use of our payroll services, consider partnering with our Explore Payroll team. They specialize in optimizing payroll setups and ensuring accurate handling of deductions, contributions, and compliance.

If you have other concerns or questions, feel free to comment below.