I placed POST-tax dollars into a 403b and 457b, will I be penalized for this? I placed $18500 into each account, a total of $37000.

 

Retirement tax questions

How did you do that? A 403b, at least, should not legally accept extra payments.  Only payments made via payroll deduction.  

If your plan allows after tax deductions, that sounds like a Roth account.  There’s nothing wrong with that.  It means you pay tax on the money going in instead of when you take it out.  

Retirement tax questions

I was able to place $18500 post-tax dollars into a 403b and another $18500 post tax into a 457b. I thought that it would be okay because I was allowed to do it through my employer retirement set up but when I am filing my taxes on turbotax it says I will be penalized

Retirement tax questions

dmertz
Level 15

Retirement tax questions

Items reported with codes BB and EE in box 12 of your W-2 are Roth contributions to the 403(b) and 457(b), respectively, and do not reduce the amount that your employer reports in box 1 of your W-2.

Item reported with codes E and G in box 12 of your W-2 are elective deferrals to the 401(k) and 457(b), respectively, and are pre-tax, not post tax, because your employer excludes these amounts from the amount in box 1 of your W-2.

TurboTax presently has a bug that flags maximized 457(b) contributions combined with maximized contributions to another type of qualified retirement plan such as a 403(b) as excess contributions because they exceed $18,500 when, in fact, the permissible total is $37,000.  To e-file you'll need to wait for the TurboTax developers to fix this, otherwise you'll need to file by mail.  There might be a fix in the April 5 update.

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Retirement tax questions

I have the same issue and the program won't allow me to select the option to file by mail. Is there a way to force it to print and allow filing by mail?

Retirement tax questions

I am having this same issue as well.  Should I request an extension?

Retirement tax questions

Looks like they fixed it because TurboTax allowed me to e-file.

Retirement tax questions

I am using TurboTax Deluxe, but my last update is 4/3/2019. Are you using the online version?

Retirement tax questions

I just tried and still get the following message that won't let me e-file - Forms w-2 & w-2g Summary: Gov 457 deferrals - Tp $37000 is more than the allowed $245000 for a government 457(b) plan. Please check your entries on your W2 for government 457(b) plans. However, $37,000 is the maximum per IRS.

Retirement tax questions

I am using the online version.

Retirement tax questions

Thank you. I am using the PC installed version, which fails due to the above item.  TurboTax - is the fix to be available soon?
nedrum
New Member

Retirement tax questions

I'm having the same problem on up to date TurboTax on a Mac. It won't let me e-file. TurboTax, we need a fix, please.
oan2510
New Member

Retirement tax questions

I am stuck with the online version. Wasn't the bug fixed on 4/5/19?
nedrum
New Member

Retirement tax questions

The bug has not yet been fixed, at least not on the Mac version. TurboTax, what do we do, demand our money back for TurboTax and the state e-file charge? This is ridiculous. Nine days until the deadline and nothing.