Filing jointly where do I enter 401k catch up amounts?

[colm]

I am 58 and filing jointly, wife is under 50. I contributed a total of $44,137 into traditional IRA's ($20,137 into 457b  &  $24,000 into 401k). TT says that we are $35,637 over my limit, that amount is a catch up but where do I enter it? They say I will have a 6% penalty if I do not withdraw the money, I believe that with the catchup I can put $18,000 into each with no penalty, I don't understand TT logic?

[SteamTrain · Accepted solution]

Slow down here:

1)  a 401k and  457b contributions are NOT IRA contributions.  IRAs are entirely separate retirement contributions done Outside of your work accounts.

2)  If you made contributions to those (401k and 457b) thru your payroll withholding, and those contributions are shown in box 12 of your W-2 forms  (code D for the 401k and code G for the 457b) then you already entered those contributions with your W-2 form.  There is nowhere else that they are supposed to be entered in the software.  (exceptions for self-directed 401k's for self-employed people).

3)  You appear to have double-entered your 401k and 457b contributions in the IRA Deduction area.......as already noted...those were not IRA's.  Go back there and take those IRA contributions out on the Deductions&Credits page.

4)  I see a $3000 Roth IRA too in your picture...take that out too unless it truly was a ROTH IRA contribution you made outside of work.  Even if an actual ROTH IRA, it may not be allowed depending on your total family income.

[turnthecorner]

Can you answer this aspect of the question: "where do I enter an after-tax 2019 401(k) catch-up contribution in Turbo-tax? Since most employee and employer 401(k) contributions are supplied to Turbo-tax via the W-2, Turbo-tax does not appear to have many (any?) fields expressly identifying deductions for a 401(k), let alone a catch-up contribution. Many thanks. 

[dmertz]

After-tax 401(k) contributions are reported nowhere on your individual tax return (except in the case where those contributions qualify you for a higher Retirement Savings Contributions Credit than you might already be eligible to receive, but it would be extremely unlikely that anyone making after-tax 401(k) contributions would qualify for this credit at all).

You employer includes catch-up 401(k) elective deferrals in the amount reported with code D in box 12 of your W-2.  Enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.

[JamesG1]

401K and 401K catch up contributions are pre-tax payments and are reflected in box 12 code D of the W-2.

Are you thinking of another type of retirement plan?

[turnthecorner]

Nope. I was thinking of a "catch up" contribution i might make to that 401k with my own post-tax dollars, directly to the fund on a path that did not involve my employer's pre-tax withholding, W-2 Box 1 or Box 12 and so on. 

Thanks for your feedback, though. 

[Btbradford]

My employer doesn’t have a way to make a 401k catchup deposit so it isn’t included on my W2.  How do I enter this in TurboTax 

[DoninGA]

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@Btbradford wrote:

My employer doesn’t have a way to make a 401k catchup deposit so it isn’t included on my W2.  How do I enter this in TurboTax 

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Please explain.

Tax deferred contributions to an employer provided 401(k) plan are required by law to be reported on the employee's W-2.  If you are making contributions and they are not reflected on the W-2 then you have to get a corrected W-2 from your employer.

[VolvoGirl]

If you made a 401K catch up contribution that isn't on your W2 it is not a pretax deduction.  It might be an after tax contribution and not deductible or reported.   How did you make a contribution if it didn't come out of your paycheck?  

[Opus 17]

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@Btbradford wrote:

My employer doesn’t have a way to make a 401k catchup deposit so it isn’t included on my W2.  How do I enter this in TurboTax 

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You can't contribute to a 401(k) except via payroll deduction.

There is no special "catch up" contribution.  Rather, your 401(k) contribution limit is $19,500 per year if you are under age 50, and $26,000 if you are age 50 or more.  Your employer should be able to process a request to contribute more than $19,500.

Your employer's HR may have a problem making a single large lump sum contribution.  You will have to work with them on this, there is no specific procedure required by law.  For example, with my company, I tell them how much I want to contribute for the year, and they divide that by the number of pay periods and take the deduction.  If I tell them on January 1 that I want to contribute $12,000, they will take $500 per pay period (bimonthly).  If I then tell them on October 1 that I want to contribute $24,000 for the year, they will do the math and figure that since I already contributed $9000, I need to contribute $15,000 over the last 6 pay periods, which is $2,500.  If my salary is only $2000 per bimonthly pay period, that's all they can take and I wind up contributing less than I wanted.  I can't go back and make an extra cash payment to catch up, because the 401(k) can only be funded by payroll withdrawals process by the employer.

Does that help?