Excess ira contributions

[dcclagett]

Turbotax said I owed money for excess contributions to my IRA and deducted $873.00 in a 6 % tax on the excess balance on my tax forms.  

My Financial Advisor says that I have a "simple IRA" and that it allows me to contribute up to $15,500 an receive additional matching funds from my employer and I did not exceed that amount. so the deduction was in error.    Was the TurboTax deduction in error?    

[MinhT · Accepted solution]

TurboTax has calculated the 6% excise tax on excess contributions as you have entered your Simple IRA contributions as contributions to a Traditional or Roth IRA. You need to revisit the IRA and delete your entry.

If you are an employee and have contributed to a Simple IRA, your contributions are already reported on your form W-2. They are deducted form taxable wages in box 1 of form W-2 and are also reported in box 12. You do not need to enter your contributions again in TurboTax.

The employee contribution limit for 2017 is $12,500 (plus a catch-up of $3,000 if age 50 or over).