I am not able to setup 2023 401K limit for 50 year above which according to IRS is 30,000. Current Quickbooks setup is limiting to 22,500. Has anyone faced this issue?

Thanks for taking the time to share your concern here, Sachin. Let me help you set up a 401k contribution limit for an employee who is over 50. 

In QuickBooks Online, the default limit for 401(k) is $22, 500. For employees over 50 years, we can set up 401(k) Catch-up to have an annual limit of $30, 000. To achieve this task, we'll need to go over the employee profile in the Payroll tab. 

Keep in mind that we're unable to add regular and catchup deductions of the same type. If you've already set up a 401(k) limit, you will need to delete it before creating the Catch-up. Here's how:
 

1. From the Payroll tab, select Employees.
2. Choose an Employee.
3. Scroll down to Deductions & contributions. Then, click Edit.
4. Tap the trash bin icon to delete the existing 401(k) contribution.
   
   
    
5. Then, press + Add deduction/contribution and select Retirement plans.
   
   
    
6. In the Type field, pick 401 (k) Catch-up. You'll see the annual maximum of $30, 000.
   
   
    
7. Fill in the necessary fields, then Save.

To understand more about yearly retirement plan contribution limits, you can read this article: Understand retirement plan contribution limits.

We also have more articles to share in case you need more payroll-related information from us: 

• Set up a 401(k) loan repayment item in QuickBooks Payroll
• Set up, change, or delete employee-paid payroll deductions

If you have additional questions about your employee's contributions and deductions, just click the reply button below. The Community is open 24/7 to assist.