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Level 1

Turbotax is reporting over contribution to 401k. W2 includes my 24.5k + company contribution. Total well below 55.5k limit. How can I fix so TurboTax does not complain?

According to my w2, I contributed $33,655. That is made up of my $24,500 and my company matching. Turbotax tells me that I over contributed to my 401k

"Forms W-2 & W-2G Summary: Elective deferrals - TP $33655. is more than the allowed $24500 for a 401k plan. Please check your entries on your W2 and 401k plans."

According to Fidelity where my 401k is managed, The IRS allows for a maximum of $55,500 of total contributions to your 401k in 2018. I am well below this number.

Why is Turbotax complaining? What do I need to do to fix this?

Thanks,
Dale Ferrario

1 Best answer

Accepted Solutions
Level 20

Turbotax is reporting over contribution to 401k. W2 includes my 24.5k + company contribution. Total well below 55.5k limit. How can I fix so TurboTax does not complain?

The employer contribution should not appear in box 12 of your W-2.  Codes D and AA are only for employee contributions.  Contact your employer to obtain a corrected W-2.

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4 Replies
Level 20

Turbotax is reporting over contribution to 401k. W2 includes my 24.5k + company contribution. Total well below 55.5k limit. How can I fix so TurboTax does not complain?

The employer contribution should not appear in box 12 of your W-2.  Codes D and AA are only for employee contributions.  Contact your employer to obtain a corrected W-2.

View solution in original post

Level 1

Turbotax is reporting over contribution to 401k. W2 includes my 24.5k + company contribution. Total well below 55.5k limit. How can I fix so TurboTax does not complain?

Thanks for the answer. I had previously contacted my employer and they said they would not provide a W-2c. I have contacted them again.
Level 20

Turbotax is reporting over contribution to 401k. W2 includes my 24.5k + company contribution. Total well below 55.5k limit. How can I fix so TurboTax does not complain?

I just realized:  Employer contributions to the designated Roth account in the 401(k) are *NOT* permitted.  Employer contributions *MUST* be to the traditional account in the 401(k).  The reporting seems to suggest that the employer contribution was made to the Roth account in violation of the tax code.

If this is what happened, the employer *MUST* take corrective action to move the employer-contributed amount from the Roth account to the traditional account and correct your W-2.

Perhaps you should contact the IRS to report the problems you are having with this employer and to find the proper corrective action to take if the employer refuses to make the correction.
Level 20

Turbotax is reporting over contribution to 401k. W2 includes my 24.5k + company contribution. Total well below 55.5k limit. How can I fix so TurboTax does not complain?

Either the employer impermissibly made employer contributions to the Roth account or the employer impermissibly allowed *you* to contribute more than the maximum.  Either of these possibilities potentially disqualifies the entire 401(k) plan of the company and *REQUIRES* correction by the employer.