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Sjones94
February 22, 2022
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401K deductions with company match using QB Online Payroll

  • February 22, 2022
  • 1 reply
  • 0 views

We are adding a company match back in to our 401K - I am setting up a new employee's deductions for a Roth401K and it does not look the same as employees using regular 401K - I am able to put a percentage in for employee and also a percentage for employee match for the regular 401K employees but the ones with the Roth are not looking the same.....is there a reason why? Maybe it's different now?

Best answer by JessT

Hi Sjones94,

 

I see the challenge you've been through with the Chat support. I'll provide a direct answer.

 

Yes, you're right. A company match for Roth 401(k) is currently not supported in QuickBooks Online Payroll. You can try finding a third-party app that offers this setup for QBOP.

 

On the other hand, I suggest sending feedback about this, so our engineers can consider adding this option in future updates. You'll want to click on the Gear icon and choose Feedback.

 

Please note that feedback is our way of gathering bug reports or feature requests straight from our clients. The requested features or options may be in the development stage or may not be considered due to some circumstances.

 

If you have any other concerns, feel free to reach back out. Have a good one!

1 reply

M
Mark_R
February 22, 2022

Your confusion ends here, @Sjones94.

 

Allow me to fill you in on everything you need to know about the retirement plan deductions and contributions in QuickBooks Online (QBO) Payroll.

 

The regular 401(k) and the Roth 401(k) are different retirement plans. Thus, the Roth 401(k) and 403(b) aren't available as company contributions through our service. This is because the entire contribution should be paid and reported separately through the provider and not through the same account as the employee after-tax deduction funds.

 

In addition, you can't deduct contributions to a Roth IRA as per the IRS guidelines. You can only make contributions to your Roth IRA after you reach age 70 ½.

 

I'm adding this article for more information: Retirement plan deductions/contributions.

 

You might also want to check out IRS guidelines for company contribution limits: IRS Retirement Topics - Contribution Limits.

 

Feel free to comment below if you need clarification about the retirement plans in QBO. I'm still open to your replies, @Sjones94.

S
Sjones94Author
February 22, 2022

Thank you! I was literally on chat for over two hours with screen sharing and they disconnected and left......however, I am wondering about this because we have always done it before. We have some employees who contribute to regular 401K and some to ROTH. Is this something not supported/allowed since we changed to QB Online Payroll - I've done it this way for years and suddenly I can't? 

JessT
JessTAnswer
February 23, 2022

Hi Sjones94,

 

I see the challenge you've been through with the Chat support. I'll provide a direct answer.

 

Yes, you're right. A company match for Roth 401(k) is currently not supported in QuickBooks Online Payroll. You can try finding a third-party app that offers this setup for QBOP.

 

On the other hand, I suggest sending feedback about this, so our engineers can consider adding this option in future updates. You'll want to click on the Gear icon and choose Feedback.

 

Please note that feedback is our way of gathering bug reports or feature requests straight from our clients. The requested features or options may be in the development stage or may not be considered due to some circumstances.

 

If you have any other concerns, feel free to reach back out. Have a good one!

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