Because of my age and that I am within 3 years of retirement, I can contribute up to $37,000 in a catch up provision within three years of retirement. Is there any fix in the works for this?
"There’s also a separate catch-up contribution that benefits soon-to-be retirees, if permitted by the 457 plan. If you’re within three years of the plan’s “normal retirement age,” you can save double the annual limit for three years as long as you haven’t maxed out your contributions in the past. If you’re eligible, that brings your maximum contribution level to $37,000 for 2018—or up to $111,000 over three years."
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We have the same situation! I spent over an hour on the phone with
Turbo Tax on Friday explaining that their "fix" on 4-4-19 only covered
the regular over-50 catch-up provision (which is $6K) but not the second
catch-up option for certain government plans when the employee is in
their last three years, which allows 2x the annual amount ($37K in
2018).
The person I spoke with on the phone understood what I was saying
and she looked up the IRS Publication that explains it but when she was
tried to tell her supervisor, that person insisted that the problem was
already fixed and no more updates would be forthcoming.
I
received an email from Turbo Tax this morning telling me that the issue
was on my end and was not a problem with their program so I will now
have to print and file a paper return. I did respond to their email with a link to the IRS page explaining this provision and I see that several people have posted the same question in the past 24 hours
so maybe someone will take a second look.
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