How do I get Turbotax to stop treating my Roth 401K contribution as a Roth IRA contribution?

[sallydyer57]

I have a code for Box 12 of AA: Designated Roth contributions under a 401(k) plan

[DoninGA]

Since your W-2 has your Roth 401(k) contributions in box 12, you do not enter those contributions anywhere else on the tax return.

[sallydyer57]

The problem is that TurboTax is assessing a penalty as if I contributed too much based on the limits for a Roth IRA, not a 401(k)

[DoninGA]

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@sallydyer57 wrote:

The problem is that TurboTax is assessing a penalty as if I contributed too much based on the limits for a Roth IRA, not a 401(k)

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Back up...Are you also entering Roth IRA contributions in the section for IRA's along with having Roth 401(k) deferrals on the W-2?

What penalty is the program saying you will have?

[sallydyer57]

All I entered was the amount and code (AA)in box 12 from my W-2. The penalty is 6% of the amount above $6000. My understanding is that a Roth 401(k) has a much higher contribution limit.

[dmertz]

sallydyer57, somehow you've mistakenly entered this under Deductions & Credits -> Retirement and Investments -> Traditional and Roth IRA Contributions.  Go back and remove the entry you made there.  It is not a Roth IRA contribution.

[juliaong]

@sallydyer57 I know you asked this a few years ago but we are having the same problem and we only have the number in line 12, nowhere else. How did you end up resolving it? Turbotax is not allowing us to file because it says we overpaid into our Roth which is incorrect. 

[dmertz]

@juliaong , I'll reiterate even though you say that you did not enter the amount elsewhere.  Amounts reported in box 12 of your W-2 are to be entered only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.  Remove the Roth IRA contribution entry that you made under Deductions & Credits.  Nothing reported in box 12 of your W-2 is a Roth IRA contribution.  A 401(k) is not an IRA.  This applies if TurboTax is reporting an excess IRA contribution.

Note, however, if you made an excess Roth 401(k) contribution (more than the elective-deferral limit) that's a different problem and an actual excess contribution that would need to be corrected.