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

[DoninGA]

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?

[DoninGA]

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.

[uclatrev32]

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.

[dmertz · Accepted solution]

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.

[The-Hyperlinkar]

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...

[dmertz]

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).