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

[NXT]

Turbo Tax is not recognizing this as a Roth TSP, which has a greater Contribution threshold.  The W-2 code shows as AA.

How do I get this actual contribution recognized as a TSP, and no penalty calculated based on the traditional Roth IRA limits?  The actual contribution and the code are on the W-2

[DanaB27]

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.

[NXT]

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

[DanaB27]

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.

[dmertz]

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