I placed POST-tax dollars into a 403b and 457b, will I be penalized for this? I placed $18500 into each account, a total of $37000.

[Opus 17]

How did you do that? A 403b, at least, should not legally accept extra payments.  Only payments made via payroll deduction.  

If your plan allows after tax deductions, that sounds like a Roth account.  There’s nothing wrong with that.  It means you pay tax on the money going in instead of when you take it out.  

[lindsay-burt-07]

I was able to place $18500 post-tax dollars into a 403b and another $18500 post tax into a 457b. I thought that it would be okay because I was allowed to do it through my employer retirement set up but when I am filing my taxes on turbotax it says I will be penalized

[Opus 17]

@dmertz

[dmertz · Accepted solution]

Items reported with codes BB and EE in box 12 of your W-2 are Roth contributions to the 403(b) and 457(b), respectively, and do not reduce the amount that your employer reports in box 1 of your W-2.

Item reported with codes E and G in box 12 of your W-2 are elective deferrals to the 401(k) and 457(b), respectively, and are pre-tax, not post tax, because your employer excludes these amounts from the amount in box 1 of your W-2.

TurboTax presently has a bug that flags maximized 457(b) contributions combined with maximized contributions to another type of qualified retirement plan such as a 403(b) as excess contributions because they exceed $18,500 when, in fact, the permissible total is $37,000.  To e-file you'll need to wait for the TurboTax developers to fix this, otherwise you'll need to file by mail.  There might be a fix in the April 5 update.

[anna_stockton]

I have the same issue and the program won't allow me to select the option to file by mail. Is there a way to force it to print and allow filing by mail?

[jsimmons721]

I am having this same issue as well.  Should I request an extension?

[anna_stockton]

Looks like they fixed it because TurboTax allowed me to e-file.

[jsimmons721]

I am using TurboTax Deluxe, but my last update is 4/3/2019. Are you using the online version?

[jsimmons721]

I just tried and still get the following message that won't let me e-file - Forms w-2 & w-2g Summary: Gov 457 deferrals - Tp $37000 is more than the allowed $245000 for a government 457(b) plan. Please check your entries on your W2 for government 457(b) plans. However, $37,000 is the maximum per IRS.

[anna_stockton]

I am using the online version.

[jsimmons721]

Thank you. I am using the PC installed version, which fails due to the above item.  TurboTax - is the fix to be available soon?

[nedrum]

I'm having the same problem on up to date TurboTax on a Mac. It won't let me e-file. TurboTax, we need a fix, please.

[oan2510]

I am stuck with the online version. Wasn't the bug fixed on 4/5/19?

[nedrum]

The bug has not yet been fixed, at least not on the Mac version. TurboTax, what do we do, demand our money back for TurboTax and the state e-file charge? This is ridiculous. Nine days until the deadline and nothing.