@BlueDevil78 wrote:
I got the same message - for the last two tax years, TurboTax said that my Roth contributions to my 401K is over the limit. I contributed over $7K each year for the last two years, thinking my limit was $19.5K. I called my financial institution and they confirmed that my limit for this past year was $19,500, not the $6,000 TurboTax is saying. All I did was enter my Roth contributions to my 401k into TurboTax as stated on my W2 - using the "AA" code in the 12c box from my W2. But, somehow, TurboTax thinks my limit is $6,000 and is hitting me with a penalty. How did this happen? And how do I fix this problem for the last two tax years? An amended return? If an amended return is the answer, what do I do differently? Thanks.
You enter your W-2 into the W-2 interview and that is the *only* place you enter it. You do NOT also enter it in the IRA contribution section because a 401(k) Roth is NOT an IRA. Your employer reports the 401(k) contribution, not you. If entered in the IRA contribution section and you filed, then you need to amend to remove it.
**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.**
