ROTH TSP on W-2 Form Box 12 for an active member of the Militaryshow an amount within the TSP allowance, but greater than a traditional Roth IRA W-2 shows code AA. Turbo Tax only recognizes this as a Tradtional Roth and peanalizes for above $6,500

For a work retirement account like the TSP all you need to do is enter your W-2. Do not enter it as an IRA contribution. Please delete the entry in the IRA contribution section.

Thank you.  To clarify, I simply do not report the W-2 amount in Box 12 in the Turbo Tax input?  I understand that will make the tax calculations correct, but will that cause an issue/disconnect with the IRS, since there is $ in Box 12 and Code AA?   Thanks , again

No, you will enter the information from your W-2 as shown, including box 12, when you enter your W-2 in TurboTax. But you do not enter this as an IRA contribution in the Deduction & Credit section since the TSP is not an IRA.

The Roth account in the federal TSP is not a Roth IRA.