Increased Employee Deferral Limits
The Secure 2.0 act increased the Simple IRA annual deferral limit and the age 50 catch-up contribution for certain Simple IRA plans (those with 25 or less employees) by 10%. So starting in 2024, both under 50 limits and catch up limits will increase by 10% above the $16,000 and $3,500 catch-up to allow 110% to be deferred. $17,600 ($16,000 X 110%) and $3,850 ($3,500 X 110%) for a max allowed deferral contribution of $21,450. However, Lacerte is picking this up as excess deferral and adding back the extra allowed contribution to income on line 1h of the 1040. The only way I can find currently to correctly report the income is to enter a subtraction to the additional income on Line 8z of the Schedule 1. I'm afraid that the IRS isn't going to like this and ask for an explanation. Can we get a box to check that would allow this correct extra contribution so we do not have to override this amount.
