Thanks for posting here, Acuman. I've got the details you need to categorize 401K in QuickBooks.
A 401K plan is generally a deduction from the employee's paychecks. If you're using QuickBooks Online (QBO) Payroll, set up a retirement plan deduction or a company contribution. Once done, QuickBooks will help you effectively categorize 401K.
Here's how:
- Go to Payroll, then Employees.
- Select your employee.
- From Deductions & contributions, Click on Start or Edit.
- Hit + Add deduction/contribution.
- Tap on Retirement Plans in the Deduction/contribution type dropdown.
- For Type, select the applicable retirement plan.
- If you need to track a company-only contribution with no employee match, choose Company-only plan.
- Enter the name of the provider or plan in Description (appears on paycheck).
- Complete the remaining fields.
- If you have a company match, under Company contribution, select the dropdown menu to choose how you want to calculate the amount. Complete the new fields to enter the amount or percent per paycheck and annual maximum.
- Select Save then Done.
For additional details about this process, check out Set up or Change a Retirement Plan.
However, if you're using QuickBooks Online without Payroll. We recommend working with an accountant to streamline the process of categorizing 401k. If you don't have an accountant, I can help you find one. Feel free to visit this page: Find a QuickBooks ProAdvisor.
Please let me know how this goes by leaving a comment below. We're always ready to assist you in managing your 401K. Take care, and I wish you continued success, Acuman.
