@nongkangma wrote:
I also have a similar question.
Roth 403b contribution, Turbo Tax says overpayment.
Actually, there is special 403 b catch up of $3000 for those have 15 and more years' employment.
How to deal with this issue? Thanks!
Turbotax does not understand the special $3000 catch-up provision for certain 403(b) employees.
The best way to handle this is probably to simply reduce your W-2 entry in box 12 code E or code BB by $3000. This will stop Turbotax from computing the penalty for excess contributions. I think when the IRS sees the mismatch, they might send a letter, which you could reply to with an explanation that you were eligible for the catch-up but turbotax was penalizing it.
There may be a way to enter the correct amount from your W-2 and then force turbotax to not include the penalty, but this would require using the program installed on your own computer and overriding the program. Tax returns with overrides can't be e-filed, and you also void the accuracy guarantee.
@macuser_22 Is there another workaround? I don't think there is, but you might be more familiar.
