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EMKSH
January 4, 2024
Question

ROTH 401(k) company match setup

  • January 4, 2024
  • 2 replies
  • 0 views

I am trying to setup a 401(k) and a ROTH 401(k) employer match. Our plan is Basic Safe Harbor and has a two step process. 

Employer must match 100% of Employee contribution up to 3% of the Employee compensation, plus 50% of Employee contribution of the next 2% of the Employee's compensation.

Quickbooks desktop only allows to put one step but not the second. 

Any help would be appreciated

 

2 replies

MariaSoledadG
MariaSoledadG
January 4, 2024

Let me add some details on how you can set up 401(k) and Roth 401(k), EMKSH.

 

QuickBooks Desktop has different types of retirement plans that you can set up for your employees. To set up both retirement plans.

 

For now, setting up ROTH 401(k) company match setup in QuickBooks Desktop isn't possible. As a workaround, you can manually calculate the amount based on the employee and employer percentages so you can enter them manually. 

 

For more information, you may also want to check out this link to see the designated Roth accounts for your reference: IRS Publication 4530

 

In addition, learn how to keep track of employees' expenses and manage payroll using payroll reports. Check out this great resource for your guide: Customize Payroll and Employee Reports.

 

You can always let us know if you have any other concerns when setting up a retirement plan. The Community is always here to help you 24/7.

BigRedConsulting
BigRedConsulting
January 4, 2024

@MariaSoledadG 

RE: QuickBooks Desktop has different types of retirement plans that you can set up for your employees. To set up both retirement plans, you can follow the steps outlined below:

 

The OP did not ask about types of retirement plans or how to set up various types of retirement plan items.

 

You didn't answer the question. Did you even read the OP's question, or did you just copy/paste this tangential answer to get points?

BigRedConsulting
BigRedConsulting
January 4, 2024

RE: Employer must match 100% of Employee contribution up to 3% of the Employee compensation, plus 50% of Employee contribution of the next 2% of the Employee's compensation.

 

I think you can do it by entering the percentage on both the employee and employer items, after calculating the employer contribution based on the employee's contribution percent.

For example,

- If the employee contribution is 3%, then the employer contribution is 3%

- If the employee contribution is 4%, then the employer contribution is 3.5%

- If the employee contribution is 5%, then the employer contribution is 4%

- If the employee contribution more than 5%, then the employer contribution continues to be 4%

 

 

E
EMKSHAuthor
January 5, 2024

Thank you Big Red Consulting. This will work. I only have 5 employees but if I had 10 or more I think this would be very time consuming trying to figure it out on every payroll.

I was on the phone with QB support for almost two hours and they couldn't figure it out. Eventually they just disconnected the call. I call back and same thing just happened quicker.

I hope Quick Books Payroll will had another layer to the setup so those who do have a Basic Safe Harbor can enter the correct formula. 

Again THANK YOU.

 

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