My wife contributed to a Designated Roth 403B plan through her employer, and when I note what Box 12 on the W-2 stated it was ("BB - Designated Roth contributions under a section 403(b) plan"), TurboTax is flagging it saying our joint MAGI is too high for her to contribute to a Roth IRA. Looking at the IRS.gov website, it looks like for a Roth 403B, there should be no issue with her contributing to this type of account? If you go here (
https://www.irs.gov/retirement-plans/retirement-plans-faqs-on-designated-roth-accounts), it says the following: "Do the same income restrictions that apply to Roth IRAs apply to designated Roth contributions?
No, there are no limits on your income in determining if you can make designated Roth contributions. Of course, you have to have salary from which to make any 401(k), 403(b) or governmental 457(b) deferrals."
Is TurboTax not handling this properly in the software? Should I be leaving Box 12 empty for this one? I did not want to get audited for leaving something off that should be included normally on the W2, but it definitely seems like TurboTax is treating this incorrectly as the modified adjusted gross income should not be factored in for a designated Roth 403B plan according to the IRS. Am I missing something? Is TurboTax not processing this correctly? Any help would be appreciated! Thanks!
