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Staceyb2024
January 11, 2024
Question

Simple IRA Contribution limit - Secure 2.0

  • January 11, 2024
  • 1 reply
  • 0 views

How do I adjust the Simple IRA contribution limit to reflect the Secure 2.0 change which allows companies with less than 25 employees to contribute 110% of the contribution limit starting in 2024.  The limit in the system is $16,000, but I can contribute $17,600 based on the Secure 2.0 change.  Is there a spot in the system to make this adjustment?

    1 reply

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    Kurt_M
    January 11, 2024

    Hello there, @Staceyb2024. We'll share details about adjustments with Simple IRA and Secure 2.0 inside QuickBooks Online (QBO).

     

    We can see the relevance of having the option to adjust Simple IRA to your required amount and percentage. Upon checking here on our end, the feature is still unavailable, and we can't provide an exact time frame for the implementation. Since there's no option to accomplish this feat, we recommend consulting with your Tax ProAdvisor so they can guide you on how to track the change outside QBO.

     

    Additionally, you can check this page to help you 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. We'll be here to help you out anytime. Stay safe, and have a good one.

    A
    Annegc
    September 10, 2024

    Do you have an anticipated implementation date for the increased SIMPLE IRA contribution limits for companies with less than 25 employees yet? Our employees who have already met the incorrect lower limits are very anxious to resume contributions to meet the correct limits. Thank you.

    H
    Heide DC
    September 10, 2024

    It's good to know that your employees met the correct limits, Annegc. Rest assured you'll get the information with the updates of SIMPLE IRA.

     

    As per checking, we don't have a specific timeframe for the implementation date to increase the Simple IRA contribution limits for companies. Since you'll want to contribute more than the system limit, you can confirm it with the IRS for verification. Please be informed that QuickBooks is only in compliance with IRS updates. Any updates from them will automatically reflect in the system. 

     

    For more information regarding contribution limits, please visit the following link: Learn about employee contribution limits.

     

    Additionally, you can explore this article for the coming changes and new offerings: SECURE Act 2.0: Small Business Owner Guide and Key Retirement Changes.

     

    I'm always here to help you with other payroll concerns, including managing payroll deductions in QuickBooks Online. Just click the Reply button to leave a comment below.

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