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N
new business owner 1
December 16, 2023
Solved

How can I change the maximum limit for simple IRA employee contribution? It is grayed out at $15,500 employee is 50 years old should be able to contribute $3500 more

  • December 16, 2023
  • 2 replies
  • 0 views
Original commenter did not share additional details
Best answer by Rubielyn_J

Hello there, @new business owner 1.

 

I understand your worry about changing the current simple IRA to catch up and the fear of deleting the employee's previous contributions. I'm here to ensure all contributions are accounted for and handled correctly.

 

Editing the contribution in QuickBooks isn't available. The only option is to delete the old setup and create a new one, as QuickBooks does not allow the same type to be used simultaneously.

 

If you delete the simple IRA and create a new IRS catch-up, it will stay there and won't be affected. The old one won't work if the limit has been reached, so you need to delete it and create a new one so that it can be deducted again with that catch-up limit.

 

Here's how: 

 

  1. Navigate to Payroll, then Employees.
  2. Choose your employee.
  3. From Deductions & contributions, select Edit.
  4. Select the Trash bin icon to remove the contribution. 
  5. Click Save, then Done.

 

Once done, create a new contribution in your QBO account. For detailed steps, you can utilize this article: Set up and manage company contributions.

 

Additionally, run a company contribution report to track your company-paid contribution. For more details, you can review this link: Run payroll reports.

 

Keep me in the loop if you have further queries about managing and setting up your company contributions in QBO. I'm here to help make sure we get this configured properly without disrupting anything you've already set up. 

2 replies

E
Ethel_A12
December 16, 2023

Hello there, @new business owner 1.

 

I'll help you change the maximum limit of the Simple IRA contribution for the employee who is above fifty years of age.

 

You need to choose the exact type of contribution for the employee so that they can have the maximum limit of $19000.

 

Here's how:

 

  1. From the left menu, go to the Payroll tab.
  2. Choose Employee and locate or add the employee you want to modify.
  3. Add or edit contributions, select Deduction & Contribution.
  4. From the Deduction & Contribution Type tab, choose a retirement plan.
  5. Select the Simple IRA catch-up from the drop-down. It should now show the Annual maximum limits as $19,000.
  6. Then, choose other required details from the drop-down and hit Save.

 

Here is an article about retirement plan contribution limits: Set up or change a retirement plan.

 

If you have questions about employee retirement contributions, don't hesitate to click the Reply button below. I'm always here to help. Have a great day.

N
new business owner 1Author
December 17, 2023

Hi Ethel, 

 

I was able to find the simple IRA catch up you mentioned but it will not allow me to change the current simple IRA to catch up.  When I tried to create a 2nd option it states I can not create regular and catch up of the same type.  If I delete the simple IRA and create a simple IRA catch up what happens to the previous contributions employee has already made this year?

N
new business owner 1Author
December 17, 2023

Hi Ethel, 

 

Thank you.  I was able to locate the simple IRA catch up as you mentioned but it would not allow me to change the current simple IRA to catch up.  It will not allow me to create a simple IRA catch up without removing simple IRA already there and I was hesitant to do that because I was afraid it would delete the previous contributions this employee has already made.  What do I need to do?

Rubielyn_J
Rubielyn_JAnswer
December 17, 2023

Hello there, @new business owner 1.

 

I understand your worry about changing the current simple IRA to catch up and the fear of deleting the employee's previous contributions. I'm here to ensure all contributions are accounted for and handled correctly.

 

Editing the contribution in QuickBooks isn't available. The only option is to delete the old setup and create a new one, as QuickBooks does not allow the same type to be used simultaneously.

 

If you delete the simple IRA and create a new IRS catch-up, it will stay there and won't be affected. The old one won't work if the limit has been reached, so you need to delete it and create a new one so that it can be deducted again with that catch-up limit.

 

Here's how: 

 

  1. Navigate to Payroll, then Employees.
  2. Choose your employee.
  3. From Deductions & contributions, select Edit.
  4. Select the Trash bin icon to remove the contribution. 
  5. Click Save, then Done.

 

Once done, create a new contribution in your QBO account. For detailed steps, you can utilize this article: Set up and manage company contributions.

 

Additionally, run a company contribution report to track your company-paid contribution. For more details, you can review this link: Run payroll reports.

 

Keep me in the loop if you have further queries about managing and setting up your company contributions in QBO. I'm here to help make sure we get this configured properly without disrupting anything you've already set up. 

    N
    new business owner 1Author
    December 19, 2023

    Thank you Rubielyn_J for your help. That worked!

     

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