Employee Roth Contributions for SIMPLE IRA

Hi there, @Lstall31.

Currently, you can only set up SIMPLE IRA contributions in QuickBooks Desktop. This is because a SIMPLE IRA cannot be a Roth IRA as per the IRS. You can read more about the SIMPLE IRA plan on the IRS website.

If you wish to proceed with setting up a SIMPLE IRA payroll item, you can follow the steps below.

1. Go to Lists, then press Payroll Item List.
2. Click the Payroll Item dropdown, then choose New.
3. Select Custom Setup, then Next.
4. Select Deduction or Company Contribution, then Next.
5. Enter the name of the deduction or company matching item, then click Next.
6. Select the name of your retirement plan provider, or add it, and enter the account number. In the Liability account field, select the account that tracks the deduction or contribution to be paid. Select Next.
   • For company match items, in the Expense account field, select the account that you want to track the item. Select Next.
7. In the Tax Tracking Type window, select the applicable retirement plan. Select Next twice.
8. Under Calculate based on quantity, select Neither and select Next.
9. Leave the Default Rate and Limit fields blank. You can add the rate and limit when you add the item to the employee profile
10. Tap Finish.

Once done, add the items to the employee profile. Here's how:

1. Go to Employees, and then hit Employee Center.
2. Select your employee.
3. Select Payroll Info, then add the retirement plan items in the Additions, Deductions, and Company Contributions section.
4. Enter the amount per period and the limits.
5. Select OK, when you're done.

For more information on setting up a retirement plan, check out this article: Set up or change a retirement plan. You can also find detailed steps on how to edit a plan in it.

If you ever need assistance with filing your taxes using QuickBooks, these resources will come in handy for you:

• Create and file 1099s with QuickBooks Desktop
• File your W-2 and W-3 forms

If you have any other concerns regarding setting up a retirement plan or filing your taxes, please feel free to leave a reply below. The Community is always available to offer assistance and support for any additional help you may need.

I have been on chat with QB's and had screen time with the same question for the last half hour.  If the IRS has allowed this option then Quickbooks should set up a new tax tracking type so we can add Roth Simple IRA  to the new deduction.  I have had to add Roth 457 to this Roth deduction in order to remove the federal tax exempt calculation.  

We just got in the groove of working with QB time so that it costs into QBO correctly and now you are telling me I have to get a 3rd party app to do my payroll so that our company can utilize a SIMPLE ROTH IRA?     I saw earlier reply from October 2024 that excused the fact that QBO does not offer the  SIMPLE ROTH IRA due to "IRS Regulations"   Well, "IRS regulations" changed on January 1st 2050 & you still do not offer it?   Now we have to find a 3rd party app?