I over contributed to my employer sponsored retirement plan. I have both a 401K and 457(b). I am over 50 and am allowed $27k to each, however, I overcontributed by $21

[SJH57]

to both, however, Turbo Tax states that I overcontributed only by $22 on my 401k, but doesn't include the $22 that I contributed to my 457(b). These are both included in Box 12  separately, 401(k) noted as code "D" and the 457(b) using code "G". Shouldn't my overpayment be $44, rather than $22 as indicated by Turbotax?

[DaveF1006]

Yes, if these were made in 2022 and if the amounts reported for both is $27,021 each, then Turbo Tax should recognize an excess contribution for both. You may need to contact live tax support to troubleshoot this further.

Meanwhile, I included this IRS link to share good news that the contributions limits (including  catchup contributions) will be raised to $30,000 for participants in 401K and and most 457 plans.

[SJH57]

@DaveF1006 

thanks for your response. A little more info:
I didn't receive a 1099-R (since I reported the over-contribution to them in 2023 and they sent me checks for both overpayments in 2023), but put in the numbers manually as directed by Turbo Tax. I entered an "8" in Box 7 and $44 in Box 1 and 2 (accounting for the over-contribution of $21 and $1.21 of interest in each of the two accounts), since the entire contribution and interest was deducted from my paycheck pre-tax. Turbotax notified me that that my over-contribution was $22 for the 401k account, but didn't include the 457 over-contribution. Did I enter everything correctly in the 1099-T? I'm hoping to get one for 2022 from the account, but I have a feeling since I just reported it, I may not get it until next year. thanks for your help...

[DanaB27]

Yes, the excess deferral will be added to your 2022 wages but the returned earnings will be reported on your 2023 return. Next year you should receive two 2023 Form 1099-R, one for the returned excess deferral with code P and one for the earnings with code 8. You can ignore the 2023 Form 1099-R with code P (which belongs on your 2022 tax return) since you already reported it. But the 2023 Form 1099-R code 8 for the earnings will need to be reported on your 2023 tax return.

The warning of the overcontribution is triggered by the W-2 box 12 entry but you took corrective actions and therefore you can ignore the warning. For excess deferrals you won't get a penalty calculated and therefore you can ignore the warning.

@SJH57 

[dmertz]

TurboTax is unable to flag an excess elective deferral to a 457(b) because 457(b) plans allow special catch-up contributions that you may or may not have been eligible to make.  If you don't qualify for any of the special catch-up contributions, yes, you also have an excess contribution to the 457(b) plan.  401(k) plans allow no similar special catch-up contributions, so TurboTax is able to detect when you have made an excess elective deferral to a 401(k) plan.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-457b-contribution-l...

TurboTax does not automatically add detected excess contributions to income, you must do that yourself as Other income.

[SJH57]

thank you for answering my question