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New Member
posted Jun 6, 2019 12:55:56 AM

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.

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1 Best answer
Level 15
Jun 6, 2019 12:56:01 AM

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.

24 Replies
Level 15
Jun 6, 2019 12:55:57 AM

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.  

New Member
Jun 6, 2019 12:55:59 AM

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

Level 15
Jun 6, 2019 12:56:00 AM
Level 15
Jun 6, 2019 12:56:01 AM

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.

New Member
Jun 6, 2019 12:56:02 AM

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?

New Member
Jun 6, 2019 12:56:04 AM

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

New Member
Jun 6, 2019 12:56:05 AM

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

New Member
Jun 6, 2019 12:56:07 AM

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

New Member
Jun 6, 2019 12:56:08 AM

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.

New Member
Jun 6, 2019 12:56:09 AM

I am using the online version.

New Member
Jun 6, 2019 12:56:10 AM

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

New Member
Jun 6, 2019 12:56:12 AM

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.

New Member
Jun 6, 2019 12:56:12 AM

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

New Member
Jun 6, 2019 12:56:14 AM

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.

Level 15
Jun 6, 2019 12:56:15 AM

The special catch-ups are still a problem.  The original question involved only regular contributions and regular catch-ups, and those are now handled properly.  Given the nearness of the regular filing deadline and Intuit typically freezing the software within 2 weeks of the filing deadline, my suggestions are to request a filing extension or to print and mail.

New Member
Jun 6, 2019 12:56:21 AM

This problem is also impacting my NYS return, since I am unable to e-file my state until I file my federal 1st. Now what do I do because TurboTax says I have to e-file my NYS return?

New Member
Jun 6, 2019 12:56:23 AM

I have the disc version and the bug is still not fixed. Please inform users the ETA of the fix.

New Member
Jun 6, 2019 12:56:25 AM

Will Turbotax be issuing refunds for faulty software?

New Member
Jun 6, 2019 12:56:27 AM

You need to call TurboTax. This question is just going out to other users. You will get a better response if you call directly.

New Member
Jun 6, 2019 12:56:28 AM

Regular catch-ups (as well as special catch-ups) of $6,000 (limit of $24,500) are still broken.

New Member
Jun 6, 2019 12:56:33 AM

Regular catch-ups (as well as special catch-ups) of $6,000 (limit of $24,500) are still broken.

Level 2
Jun 6, 2019 12:56:35 AM

The IRS clearly states that 457 (b) plans (code G) allow for a 3 year catch up contribution of up to $37,000 for people who have reached plan retirement age as I have.  As of today (Monday, April 8), I am being flagged by TurboTax that I exceed the $24,500 limit AND WON'T ALLOW ME TO FILE ONLINE!  PLease fix this.  I ran the update available as of 4/7/2019.  I paid for everything requested, including Audit protection.  

New Member
Jun 6, 2019 12:56:36 AM

I'm having the same problem....When can we expect a fix?

New Member
Jun 6, 2019 12:56:37 AM

I updated TurboTax for the Mac today (Thu, 4/11/19) and I successfully e-filed my return, so it appears TurboTax has fixed the 457(b) issue in a recent update, at least for the Mac version. Thank you, TurboTax.