Excess contribution to IRA

Louisianayankee · ‎April 3, 2021

When I filed my taxes, Turbotax informed me that I had contributed an excess $3000 to my IRA, and had to move it or it would be taxed. But the IRS allows a catch-up of that amount for public school employees who have worked at the same institution for 15 or more years who have not met the annual payment limit during that time. My tax return has been accepted by the feds. I'm not changing any amounts on my return, just explaining why my overage is allowable. Would I need to amend in order to explain this, fill out an additional tax form, or just leave things as they are?

macuser_22 · ‎April 3, 2021

An employer plan is NOT an IRA and does not get entered in the IRA contributions section at all. The only place that employee contributions are reported is on your W-2 box 12.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Louisianayankee · ‎April 5, 2021

Thanks for your answer, but I don't think I made myself clear enough. When I retired last May, I was eligible for an additional $29.000 for unused sick and annual leave. I never received the money in hand; it immediately went into a retirement account (part of my employee plan). The amount appeared on my W-2 on line 12a, and when I entered it into TurboTax, a box appeared saying that I was $3000 over the annual contribution limit, and that I would need to move $3000 or pay taxes on it next year. But the IRS allows individuals who have had 15 years of service in a public school system to catch-up with an extra contribution up to $3000. I need to know how to get around the TurboTax pop-up so that I won't get taxed on the extra $3000. I've already filed my tax return, so I'm wondering if I need to file an amended return, or will the IRS realize my overage was allowable?