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agrossmt
February 28, 2025
Question

Seeking Workaround and Timeline for Roth SIMPLE IRA Support Post-SECURE Act 2.0

  • February 28, 2025
  • 1 reply
  • 0 views

[I've been using QuickBooks Online extensively to manage our company's payroll and have generally been pleased with its functionality and reliability. However, I've encountered a significant issue that I hope to find guidance on here.

Recently, we decided to enhance our employees' retirement options by encouraging them to enroll in a Roth SIMPLE IRA, spurred by the enhancements of the SECURE Act 2.0. Unfortunately, when we tried to set up the necessary payroll deductions in QuickBooks, I was surprised to find that the platform does not yet support Roth SIMPLE IRA deductions.

This lack of support complicates our payroll process and affects our operational efficiency. It also impacts our employees' trust in us to effectively manage their benefits. As we all know, retirement planning is evolving rapidly, with significant changes like automatic enrollment features expected in the upcoming SECURE Act 3.0. Timely updates in QuickBooks are more crucial than ever.

I'm reaching out to see if anyone has found a viable workaround for this issue. Additionally, I would greatly appreciate it if anyone could share insights or updates on when QuickBooks plans to integrate support for Roth SIMPLE IRA deductions. Given that the SECURE Act 2.0 was passed in December 2022, it seems urgent that such updates be prioritized.

We are at a point where we may need to consider alternative payroll solutions or potentially shift this crucial function to our CPA if a solution isn't forthcoming. I'm hopeful that someone here can provide guidance or share their experience regarding similar issues.

Thank you for your help, and I look forward to any advice or information you can provide!

1 reply

G
GenmarieM
February 28, 2025

I understand how important it is to enroll your employees in a Roth SIMPLE IRA within QuickBooks Online Payroll, agrossmt. I want to ensure that your idea about integrating Roth SIMPLE IRA deductions gets the attention it deserves.

 

While this feature isn't available in QuickBooks Online Payroll, QBO does support several other retirements plans to help you manage your contributions:

 

  • 401(k) / 401(k) catch-up
  • Simple 401(k) / Simple 401(k) catch-up
  • 403(b) / 403(b) catch-up
  • SARSEP / SARSEP catch-up
  • After-tax Roth 401(k)
  • After-tax Roth 403(b)
  • Company-only plan
  • SIMPLE IRA / SIMPLE IRA Catch-up

 

For detailed information on retirement plans, I recommend referring to the article on how to set up or change a retirement plan in QuickBooks: Retirement plans in QBO.

 

Additionally, consider exploring third-party applications available for managing Roth contributions. This approach allows you to benefit from Roth SIMPLE IRAs while utilizing QuickBooks for payroll and accounting.

 

In the meantime, I suggest sharing your ideas with our product development team to evaluate your feedback and consider implementing changes in the next update.

 

Here's how:

 

  1. Go to the Gear icon at the top.
  2. Select Feedback.
  3. Type in your feedback and product suggestions.
  4. Click Next to submit them.

 

Furthermore, I've added this article to guide you in adding or changing employees' work locations in QBO Payroll to track your employee expenses: Set up and manage work locations in QBO Payroll.

 

Keep us posted if you have other concerns or questions about setting up payroll deductions in QuickBooks Online Payroll. We'll be here to lend a hand at any time.

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