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New Member
posted Jun 4, 2019 2:24:41 PM

The form is telling me that I am incurring a penalty for contributing too much to a Roth IRA (~10K$). TSP Roth says limit is $18,000? Site says $5,500. Can you help

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1 Best answer
Level 15
Jun 4, 2019 2:24:47 PM

Enter amounts shown in box 12 of your W-2 only on TurboTax's W-2 form, nowhere else in TurboTax.  Your TSP is not an IRA.

6 Replies
Level 15
Jun 4, 2019 2:24:43 PM

The $18,000 contribution limit is for a Roth 401(k).  If you are contributing to a Roth IRA the contribution limit is $5,500.  Which type of account do you have?

Level 15
Jun 4, 2019 2:24:44 PM

Additionally, if your elective deferrals to the retirement account are shown on the W-2 box 12, then you do Not enter them again in the IRA contribution section of the program.

New Member
Jun 4, 2019 2:24:45 PM

I am active duty military and contribute part of my paycheck to the government TSP (Thrift Savings Plan) traditional and Roth. The TSP site says my limits are $18k. They are indeed listed already in box 12 of my W2.

Level 15
Jun 4, 2019 2:24:47 PM

Enter amounts shown in box 12 of your W-2 only on TurboTax's W-2 form, nowhere else in TurboTax.  Your TSP is not an IRA.

New Member
Jun 4, 2019 2:24:48 PM

This also misled me, 401k's are entered on your W2 form which confused the program when I re-entered the contribution. Why don't they clarify/simplify this# and just put all plan information on the W2 form...

Level 15
Jun 4, 2019 2:24:49 PM

Personal traditional and Roth IRA contributions are not reported on a W-2 form because they are not employer plans.  Since some individuals have income from self-employment, alimony and other sources which qualify as compensation for making an IRA contribution, personal IRA contributions must be handled separately from Forms W-2.

A TSP *is* an employer plan, not an IRA, so it is handled by entering on TurboTax's W-2 form, just like a 401(k).