Never ran into this before, and wondering if TT glitch?
I have an employer sponsored 401k, and am equally contributing between a traditional and a Roth. When walking through TT 2021 H&B, it said I over contributed by $3900.
It is basically telling me that there is a $7000 contribution limit?
I found a few websites online with differing information. There is a listed $7000 limit, then on the same, and another website, it says that the contribution limit is $19,500.
Is there a difference whether or not your 401k is employer sponsored, or not? Doesn't make sense. Below is a website with conflicting information with quotes from the same site.
If anyone can shed some light here, I would appreciate it. Will make a difference if I need to contact my HR and get a redistribution and an amended W-2. Thank you
Both below from same website... fool dot com/retirement/plans/401k/over-contribution
"Since you have a 401(k) at work, you'll have to be conscious of income limits that can affect your eligibility to deduct your contribution on your tax return, or, in the case of a Roth IRA, to contribute at all. For 2021 and 2022 the contribution limit is $6,000, with an additional $1,000 catch-up contribution limit for those age 50 and older."
"For both 2020 and 2021, the IRS limits 401(k) employee contributions to $19,500. If you're 50 or older, you can contribute an extra $6,500 as a catch-up contribution."
