@amandawayneingram wrote:
No Form 5329 attached to my return. Thank you for your help.
Unfortunately, this is very old discussion that mostly seems to be about how to update turbotax. For a better answer to your question, I suggest you create a new question instead of adding to an old question.
Briefly, Turbotax does not support the special $3000 catch-up contribution for certain employees covered by 403(b) plans. The consequence of reporting what Turbotax considers to be "excess" contributions is that the excess is added back to your taxable income. For example, if your W-2 shows $50,000 of box 1 taxable wages and you had $3000 of excess retirement contributions, your form 1040 line 1 taxable wages would show as $53,000. You are paying tax on the excess contribution that should have been tax-deferred.
Of course, this is a very simple example, and it may not be easy to figure out if paid tax on the excess if your tax situation is complicated (multiple W-2s, other kinds of income, etc.). You should print a copy of your return and review it carefully.
The only way to fix this when filing an original tax return is to be using the desktop version of Turbotax installed on your own computer and overriding the calculation. Overrides void the accuracy guarantee and can't be e-filed.
If you did end up paying tax on the $3000 "excess" contribution and need to file an amended return, you will also need to download and install Turbotax on your own computer and perform a manual override, then print and mail the amended return. Customer support can provide a download to your account if you previously paid for the online version.
