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lululime12
July 18, 2024
Question

Simple IRA max contribution adjusment, 2024 Secure 2.0 ACT (employers with fewer than 26 employees)

  • July 18, 2024
  • 2 replies
  • 0 views

Now that the Secure 2.0 Act allows for higher contribution limits to SIMPLE IRA in 2024 for employers with fewer than 26 employees, how do you adjust the default maximum contribuiton/deduction limit that is locked in on quickbooks online. For our small company, we need to change to a max annual deduction of $17,600 and a max of $21,450 for simple ira with catchup. Please help.

    2 replies

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    SirielJeaB
    July 19, 2024

    I can provide details on the maximum limit for SIMPLE IRA employee contributions or deductions.

     

    We can't manually update the default maximum contribution/deduction limit for a SIMPLE IRA. The program's calculations follow the contribution limits set by the IRS, which will automatically change in the system. For more information on retirement plans, you can visit the IRS website.

     

    Here's an article that provides details on editing a retirement plan item: Set up or change a retirement plan.

     

    I'll be on the lookout for your response if you have further questions about payroll contributions or deductions and will address this promptly.

    FishingForAnswers
    FishingForAnswers
    July 19, 2024

    @SirielJeaB  You said: "In the meantime, let's make sure the payroll settings and contributions accurately reflect the new limits for your company."

     

    Yes, that is exactly what the OP wants to do.

     

    Yet somehow, I can't seem to find the part of your post that tells them how to do that.

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    Dfg1
    November 11, 2024

    We are having the same issue and running out of time in 2024.  Due to our company being less than 25 employees, we have increased the simple IRA limits due to the 2024-2 Notice located on IRS.gov.  Please have Quickbooks increase to the new total catchup limit of $21,240 (110% increase) due to this notice ASAP as employees can increase their contributions due to the Secure Act 2.0 changes listed in Notice 2024-2 located on the IRS.gov website.

    K
    Kurt_M
    November 11, 2024

    Welcome to the Community space, @Dfg1. I'll share details about adjustments with Simple IRA and Secure 2.0 inside QuickBooks Online (QBO).

     

    I recognize how crucial it is to adjust the Simple IRA to fit your specific amount and percentage requirements. After assessing our current capabilities, I can confirm that this feature is still unavailable, and we cannot provide a clear timeline for when this will be available. Since there are no options to accomplish this within the system, I recommend contacting your Tax ProAdvisor for help managing these changes outside of QuickBooks Online.

     

    Furthermore, you can check this page to help manage contributions inside QBO: Set up or change a retirement plan.

     

    Feel free to visit us here in the Community space if you need assistance managing employee contributions or have any questions related to QuickBooks. As always, I'll be around to extend a helping hand. Stay safe.

    FishingForAnswers
    FishingForAnswers
    November 11, 2024

    @Kurt_M  Well, at least you aren't pretending that "We’re dedicated to ensuring with compliance to the new payroll law, and your suggestion will help us prioritize this important update."

     

    This is ridiculous.

     

    Even if your engineering team had been collectively pressing one key per month since this thread started, they'd still be at least close to updating the caps.

     

    It is literally 5 keystrokes per cap, you absolute cyber-gremlins.

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