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Cstephen_Manager
October 19, 2021
Question

Can anyone help me? I am trying to add a after tax Roth account and it keeps taking it out pretax.

  • October 19, 2021
  • 25 replies
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    25 replies

    Rubielyn_J
    Rubielyn_J
    October 19, 2021

    It's my pleasure to help you add the after-tax Roth account, @Cstephen_Manager.

     

    To ensure that it will not be taking it out pretax, let's choose the category when setting up a Roth 401(k) retirement plan. A Roth 401(k) combines features of the traditional 401(k) with those of a Roth IRA. But like a Roth IRA, contributions are made with after-tax dollars.

     

    Let me show you how:

     

    1. In QuickBooks Online Payroll, select the Payroll menu, then choose Employees.
    2. Choose the employee's name.
    3. In the Deductions & Contributions section, click Edit.
    4. In the Deductions for Benefits section, select Add a Deduction.
    5. Select Retirement Plans as the category and After-tax Roth 401(k) as the type.
    6. Enter a description.
    7. Lastly, select Ok.

     

    For additional insight, please refer to this article: Set up a Roth 401(k) plan. It covers general information about the retirement plan.

     

    In addition to that, I've attached some articles to help you manage payroll deductions and contributions in QuickBooks:

     

     

    Feel at ease to get back to this thread if you have other questions about adding after-tax in QuickBook Online. I'll be around to assist you again. Keep safe and take care.

    cathy23
    January 21, 2022

    How do you handle the issue of the Roth being deducted from gross instead of net on the desktop payroll?

    Mine has been working just fine for a long time and all of a sudden this week, the deduction changed. The only thing I've done is used the updates. Why would that change how the Roth was deducted? I'm a bit confused as to why all of a sudden, this would change.

    AbegailS_
    January 21, 2022

    The update may have reset the Roth item, Cathy.

     

    You can open update it to net pay when needed. Here's how:

     

    1. Go to the Lists menu, the Payroll Item Lists.
    2. Locate the item and double-click it.
    3. Click the Next button until you see the Gross vs net window.
    4. Change it to net pay.
    5. Click Next, then Finish.

     

    If there's a need to correct your payroll transactions, you can record a liability adjustment to clear it out. Follow the steps in this article for guidance: Adjust Payroll Liabilities in QuickBooks Desktop. 

     

    You'll also want to check out this article on how to see all the remaining balances you have in QuickBooks: Run Payroll Liability Balances Report. 

     

    Get back to me if you have follow-up questions about this by commenting below. I'll be right here to provide answers to your concerns.

    Rubielyn_J
    Rubielyn_J
    October 23, 2021

    Hi, @Cstephen_Manager.

     

    Hope you’re doing great. I wanted to see how everything is going about adding the after-tax Roth account you had concerned you had the other day. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

     

    Looking forward to your reply. Have a pleasant day ahead!

    jray2629
    November 7, 2022

    I need assistance setting up a ROTH IRA in QuickBooks Desktop.  Some employees have dollar amounts and some have percentages as their deferrals.  QB desktop does not give me the option of selecting ROTH IRA as the type.  I haven't been able to find a lot of nitty gritty details on setting this up properly.

    JonpriL
    November 7, 2022

    Hello @jray2629,

     

    I hear you and I'm here to ensure you're able to setup a retirement plan in QuickBooks Desktop. But before that, can I ask you a question about the setup you would like to accomplish? Saying you're unable to select ROTH IRA, may I know what type of item or ROTH retirement plan is this?

     

    Keep me updated in the comments below. Hope to hear from you as soon as possible. Take care and stay safe!

    jray2629
    November 7, 2022

    It is just a regular ROTH IRA for after tax deductions.  It is not a ROTH 401k.  I initially set it up as ROTH IRA with NONE for the tax tracking since a ROTH IRA was not an option here.  No taxes affected. Calculate on Gross Pay.  

    Archie_B
    November 7, 2022

    Thank you for following up, jray2629.

     

    That's correct. the retirement plans provided by my colleague @AlcaeusF above, are the currently supported plans in QuickBooks Desktop Payroll.

     

    In terms of tax tracking type, I'd recommend consulting a payroll advisor to assist you in setting up a Roth IRA contribution in QuickBooks Desktop.

     

    You can also find more information about Roth IRAs by visiting the IRS website: Roth IRAs.

     

    If you like to learn more about the supported plans in QuickBooks Desktop, you can check out this article: Understand retirement plan contribution limits.

     

    Feel free to post in the Community or tag my name in your next comment for other questions about retirement plans in QuickBooks. I'll be here to check on your response. Have a great day!

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