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K
KH-19
December 11, 2024
Question

how do I add additional employer contribution to a simple ira re the secure act 2.0

  • December 11, 2024
  • 1 reply
  • 0 views

additional 10% on top of the existing limits

1 reply

K
Kevin_C
December 11, 2024

You can set up a new retirement plan to obtain an additional 10% of the existing limit in QuickBooks Online, @KH-19. I'm happy to provide further details about this below.

 

Currently, you can set up a higher limit for a retirement plan, with the limits for SIMPLE 401(k) and SIMPLE IRA plans, including their catch-up contributions. Here's how:

 

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. Click Edit from Deductions & contributions.
  4. Pick + Add deduction/contribution.
  5. Select Retirement Plans in the Deduction/contribution type▼ dropdown.
  6. For Type, choose the applicable retirement plan.
  7. Enter the name of the provider or plan in Description (appears on paycheck).
  8. Complete the remaining fields. Then, select Save and Done.
     

 

If you want to include the employer contribution or company match, you can add it under Company Contribution. Then, select the dropdown menu to choose how you want to calculate the amount. Complete the new fields to enter the amount or percentage per paycheck and the annual maximum.

 

After that, you can use the newly set up retirement plan for your upcoming pay runs. If you're unsure when to exactly use it, I suggest consulting your tax advisor to ensure that your books are accurate and to avoid messing up your payroll data.

 

Moreover, check out this resource to review upcoming changes and new offerings about retirement plans: SECURE Act 2.0: Small business owner guide and key retirement changes.

 

Additionally, you can visit this article to provide a detailed breakdown of your employees' wages, deductions, and tax information for a specific period: Run payroll reports.

 

I'm always around to lend a hand if you need more help managing your retirement plans or with anything else related to QuickBooks. Take care and have a great day!

C
CTCINVA
December 23, 2024

This is not working for me. I have issued the SIMPLE IRA additional employer-only contribution lump sum outside of our pay checks. Regardless, I tried setting this up as detailed above, but I can't assign it to my employees since they already have a SIMPLE IRA plan attached in QBO. I get an error "We can't assign 2 employees", and I only have three including myself. 

 

I need to know how to enter a one-time contribution, not a recurring contribution tied to pay checks.

J
JeveeAdvin__la
December 23, 2024

Hello there, CTCINVA.

 

Let me clarify why you're unable to assign a Simple IRA to your employees. I am here to walk you through each stage, ensuring that you can provide this option to your employees as swiftly as possible. Let's get started on addressing any barriers and simplifying the setup process.

 

Transitioning to the technical side of things, the error message you've received indicates that you are attempting to assign two similar payroll item types. To resolve this issue, we need to first remove the existing payroll item and then create or reassign a fresh one.

 

Here are the steps to remove the existing item:

 

  1. Go to Payroll and choose Employees.
  2. Select your employee.
  3. From Deductions and contributions, choose Start or Edit.
  4. Click the trash bin icon next to the deduction you want to remove.
  5. Select Delete and hit Done.




 

Here's how to create a new one:

 

  1. Go to Payroll and choose Employees.
  2. Select your employee.
  3. From Deductions and contributions, choose Start or Edit.
  4. Click the Add deduction/contribution.
  5. Under the drop-down menu click the plus sign Add deduction/contribution.
  6. Under the Deduction/contribution type, choose Retirement plans.
  7. Under Type, Select Simple IRA Catch-up Limit.
  8. In the Description, type Simple IRA catch-up limit.

  9. Since it is a one-time contribution, allocate the Annual maximum amount.



     

Once you have completed the steps mentioned above, you can refer to this article for comprehensive guidance: Set up or change a retirement plan.

Moreover, here is an article that offers a detailed analysis of the paychecks from a payroll report: Run payroll reports.

Please don't hesitate to ask any questions along the way. I'm committed to making sure you feel confident and empowered in managing your payroll in QuickBooks Online. How can I assist you further?

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