@geshleman wrote:
I understand there is a limit, but turbo tax is reading it as an employer contribution and it is not. It is an employee only contribution and that makes it income instead of a deduction. How can I get past this?
By law, all payroll contributions are made by the employer. What is happening here is, your wife agrees to a voluntary salary reduction (so she has less taxable income) and the employer contributes the money, plus any employer match. That's how this type of plan works in the regulations.
Later in the program, only enter direct contributions she made out of pocket and not via payroll.
