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Retirement tax questions
Thanks for your reply; you are correct that i'm not self-employed and that my W2 shows the maximum amount contributed under code AA ($19500 in 2021, etc)
The 1099-R that i have received from Fidelity the last two years details the extra amount of Roth 401k ( above the W-2 AA / IRS limit) that is allowed to be contributed from paycheck deductions through the "Roth In-Plan Conversion" program.
This is Fidelity's guide to that program:
https://nb.fidelity.com/bin-public/070_NB_PreLogin_Pages/documents/tva_RothInPlanConversionGuide.pdf
My core issue is when I enter in this 1099-R information in TurboTax, it ultimately leads to a page where Turbotax cautions me that i've contributed more than the allowed amount to 401k during the year and that i may be subject to penalties, etc.
Yes I contributed more than the $19,500 normal limit in 2021 but the Roth In-Plan Conversion is part of an exception to that normal limit.
To me this indicates that Turbotax may not have been updated to incorporate the Roth In-Plan Conversion program and recognize that the total amount of 401k contributions allowed in a year is higher than the normal IRS limit if a Roth In-Plan Conversion has been established.
I hope that helps clarify the situation. i'm just trying to make sure that I enter that information in correctly to Turbotax so the extra contributions aren't coded as taxable , or some penalty payment calculated, where there should be none