457 and savings credit

Forum|Forum|4 years ago
February 11, 2022
1 reply
0 views

My contributions to a 457 plan are not carrying to the right line. I do work for a government entity, and it's not being recognized that way by the program, so the savings credit is not being calculated. Has anyone else encountered this? How do we contact the company about it? Thanks in advance.

BillM223

Level 15

It's likely that you need to complete a section in the Deductions & Credits area in order to validate the contribution to the 457(b) plan.

Please go to Deductions & Credits->Retirement and Investments->Retirement Savings Contribution Credit and click Start or Update (it very likely says "Needs Review" to the left of the Start button - this means that TurboTax recognized the code G on the W-2 as a retirement contribution).

Step through the various screens so that TurboTax can determine if you qualify for the retirement credit. For example, you need to tell TurboTax that you were not a full time student for at least 5 months in 2021. Please see "Who Can Take This Credit" on page 2 of the 8880 form and instructions. Until you complete this section, TurboTax cannot determine if you qualify for the credit.

Please let us know if this does not solve your issue.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

sgfsueAuthor

Level 2

Thank you! I tried this, as did a co-worker, and it didn’t work. Then we both changed our answers to the question ”Is it a government entity?” Since it is, we both had selected “yes.” When we changed the answer to “no,” the credit was applied. That seems totally backwards so I wonder why the program does it that way and how many people have missed out on the credit. Again, I appreciate your response.