Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 31, 2021 12:05:48 PM

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

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

0 5 702
5 Replies
Level 15
Mar 31, 2021 12:12:47 PM

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.

New Member
Mar 31, 2021 12:19:58 PM

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)

Level 15
Mar 31, 2021 12:34:59 PM


@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)


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?

New Member
Mar 31, 2021 3:32:03 PM

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.

Level 15
Mar 31, 2021 3:37:51 PM

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.