SIMPLE IRA - small employers - how to enter in Lacerte?

Forum|Forum|5 months ago
January 17, 2026
4 replies
12 views

Starting in 2025, the maximum employee SIMPLE deferral is higher if the employer has 25 or fewer employees making at least $5k. If I enter "1" (maximum) for "Self-Employed SIMPLE", Lacerte calculates the max under the old rules. The program allows me to override the amount, but I'd rather have Lacerte do the calculations since the 3% employer match can be complicated and I don't want to screw up if I make a last-minute change to Schedule C. I've searched both the Schedule C entry page and the Adjustments page, but I can't find any mention of employer size. A check-box would do the trick. Am I missing something? Thanks.

Lacerte Tax

abctax55

Level 15

It (Lacerte) didn't do it last year either.

Let's hope Intuit does bother to implement the new(ish) tax law for 2025 returns.

HumanKind... Be Both

A

achatfield

Level 2

Additionally, my client is an employee of a qualified small employer, and maxed out their contribution, plus the catch-up contribution, but Lacerte gives a diagnostic that they have exceeded the maximum contribution. Being able to indicate the number of employees would help, so they know the company qualified for higher contributions.

Alternatively, just being able to check a box that says that the $21,450 limit applies (so it get's rid of the critical diagnostic) would be help.

A

achatfield

Level 2

There's a new fix for employee's that contribute the max based on the "small employer" limits. On screen 10 - Wages, under the basic input boxes, there's a box that says "Elect to apply the increased elective deferral 408(p) SIMPLE limits and makes an additional employer contribution." Checking this box clears the diagnostic that says they have exceeded the $20,000 limit.

Additionally, for self-employed SIMPLE contributions, there is a box on screen 24 - Adjustments and SEP, SIMPLE, Qualified Plans, under the Self-employed SIMPLE (1=maximum) that says "1=Self-employed SIMPLE qualifies for increased elective deferral", which increases the limits on the calculation and allows the small business increased contributions amounts and clears the diagnostic.