Hey there, @HW808.
Thanks for reaching out to us here in the Community.
You'd need to categorize the amount of the contribution to the liability account on the journal entry, check, or whichever you usually use to show you're paying yourself. Typically this setup is automated in our system, so to accomplish this manually, you'd need to reach out to your accountant/bookkeeper to ensure its accounted for properly. If you do not have an accountant or bookkeeper, don't sweat! We can help you find one here in the Community.
In the meantime, I'm including the IRA Deduction Limits from the IRS website: IRA Deduction Limits. Also, here's another handy article to check into: Set up payroll item for retirement benefits (401 K, Simple IRA, etc.).
Please don't hesitate to let me know if you have further questions or concerns. You can always reach out to the Community or me anytime you find you need a helping hand in getting back to business. Take care!
Thanks for the reply. So in Quickbooks I will need to show it as a liability. I was wondering if it would be some type of Bank account. If I understand this correctly, it would be in my personal financial program that I track it that way, the not in the company.
For the liability account, which tax line mapping should I be using for this type of account?
Thanks for the quick reply. So in Quickbooks, I would set it up as a liability and not some type of bank. I imagine that would be something I do on my personal finance software, not the companies.
Is there a tax-line mapping I should be using for this liability account?
Yes. You're correct, HW808.
You'll have to set it up as a liability under your financial program.
With regard to the tax mapping, I'd recommend reaching out to your accountant. They're the best support that can decide on what is best for this type of recording.
Feel free to bookmark these links that talk about IRA Deduction Limit:
I'm just a post away if there's anything that I can help. Stay safe!