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A
agsanders
December 6, 2025
Question

Setup over 401(k) over 50 catchup provision

  • December 6, 2025
  • 1 reply
  • 40 views

Need some help.  I have an employee that is over 50 who can now use the catchup provision for 401(k) contributions.  The catchup contributions will be subject to Roth provisions while the traditional 401(k) contributions will be pretax.  How do I setup the different contributions in QBO?

1 reply

MsNorthPND1881
MsNorthPND1881QuickBooks Team
QuickBooks Team
December 6, 2025

Thank you for reaching out to us! We truly value the time you’ve taken to share the details of your situation, agsanders, and we're here to provide the support you need. To address your question about setting up 401(k) contributions and the catch-up provision for employees aged 50 or older in QuickBooks Online Payroll (QBO Payroll), I’d like to clarify this matter.  

 

QBO Payroll has a limitation in its system that blocks the ability to apply both regular 401(k) deductions and catch-up deductions for the same employee. This stems from how the platform processes multiple deduction types under one 401(k) account for an individual. Although this feature isn’t yet supported, you can manage this by manually tracking the split between pretax regular contributions and Roth catch-up contributions, as QBO currently doesn’t offer a built-in solution for this dual setup.

 

It’s great that you’re supporting your employee’s retirement planning, simply set up separate payroll deduction items in QuickBooks Online for their pre-tax 401(k) and Roth catch-up contributions, assign them in their profile, and ensure the amounts comply with IRS limits; let me know if you need further assistance!

S
SB-LF
January 5, 2026

I have the same question and just want to confirm...I will need to set up 2 separate payroll deductions - one for the regular contribution limit that is exempt from FIT & a second deduction for the catch-up amount that is taxable as a Roth contribution, correct?  If so, can I use the following payroll items:  401(k) Catch-up Contribution (60-63) for the non-taxable amount and After-tax Roth 401(k) Catch-up (60-63) for the catch-up amount & set the withholding amounts accordingly?

Clark_B
Clark_BQuickBooks Team
QuickBooks Team
January 5, 2026
Thanks for reaching out, @SB-LF. Yes, you’re on the right track in setting up two separate deductions.
 
The 401(k) catch-up contributions are indeed exempt from Federal Income Tax (FIT) and State Income Tax (SIT). Meanwhile, After-tax Roth 401(k) catch-up contributions are fully taxable.

 

For more details about plan types and their exemptions, feel free to refer to this article: Set up or change a retirement plan.

 

We’re always here to help you if you have any other concerns.

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