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New Member
posted Apr 6, 2021 12:04:29 AM

I contribute to TSP (401a) w/ a max contribution of $19.5k p/year. Software is registering it as a 401k & I'm being charged a fee. There's no 401a option, please help!

I have confirmed with TSP that this is the correct amount and the correct type of account (401a).  According to the IRS, this is also correct.  Looking for how to avoid this penalty not only now, but for all future contributions!  Thank you so much!

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2 Replies
Level 15
Apr 6, 2021 4:54:04 AM

(Maybe it's NOT a TSP......a true TSP would be noted in box 12 of your W-2 with a code D, or coe AA if it was a ROTH TSP)

 

TSP contributions ARE equivalent to 401k contributions...they are 401k contributions with another name.

 There should be no penalty for that contribution..

BUT

1)  Your contributions should only be entered as a part of your W-2 entries, and should be noted in box 12 with a code D  (if traditional TSP and not a ROTH TSP).

2)  Do not enter the contributions a second time on the Deductions&Credits page as an IRA contribution.....an IRA is NOT a TSP/401k.

_________________________

OR, explain further what you are being "charged" for.  Software  Upgrades can be required for a number of reasons, certainly it is not just for having that TSP contribution.

 

Or again...maybe it is NOT really a TSP.   TSP's are specific to Federal Govt/Military employees.

Level 15
Apr 6, 2021 5:17:06 AM

The federal TSP is equivalent to a 401(k) and follows the rules of a 401(k).  A 401(k) is a type of 401(a) plan.