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401K Excess Contribution

I was 71 and still working in 2019.  I contributed $3000 to my company's 401K (Box 12); line 12a of my W-2 has code D.  TurboTax considers the $3000 an excess contribution because of my age but 401K fund says that the contribution is allowed because I'm still working and the amount is less than the limit.  Whose right?  If contribution is  pre-tax how do I get TurboTax to treat it as such? 

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Accepted Solutions

401K Excess Contribution

You do not enter it there.  Only in box 12 on the W-2 - nowhere else.  A 401(k) is NOT an IRA.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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6 Replies

401K Excess Contribution

Where do you see it as an excess contribution?

 

You did not enter it into the IRA contribution section did you?   It ONLY gets entered on the W-2 section in box 12, nowhere else.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

401K Excess Contribution

When I'm editing the retirement section of deductions.   

401K Excess Contribution

You do not enter it there.  Only in box 12 on the W-2 - nowhere else.  A 401(k) is NOT an IRA.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

401K Excess Contribution

When I update Retirements and Investments, Traditional and Roth Contributions the 2nd screen is Did Mark Contribute To a Traditional IRA - I clicked YES.  Then in the screen Tell Us How Much You Contributed, the amount is blank and I entered the amount on my W-2.   After screens asking about my Roth accounts, An Age Limit Prevents Your IRA Contribution comes up and states that IRA contribution is an excess contribution. 

401K Excess Contribution

Well go back there and UNCLICK the Traditional IRA box and press continue to REMOVE the contribution that does not belong there.

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

401K Excess Contribution

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