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knoberle
New Member

Why does TurboTax red-flag the 457(b) maximum 3 year catchup contribution of $36,500?

The final form checking process incorrectly lists maximum at $24,500. This the regular contribution maximum not the  3 year catchup.
3 Replies
SweetieJean
Level 15

Why does TurboTax red-flag the 457(b) maximum 3 year catchup contribution of $36,500?

racerock11
Returning Member

Why does TurboTax red-flag the 457(b) maximum 3 year catchup contribution of $36,500?

That link does not work.

In the end, when is TT going to fix their software to account for the two age based contributions allowed for in:
- 403 - can be into the upper 30's
- 457 - 3 years to go and you can defer an additional 3K.

Even TT themselves have finally publicly acknowledged they know about this (I have for 2 years and my wife is taking advantage of both:

https://turbotax.intuit.com/tax-tips/retirement/are-403b-contributions-tax-deductible/L8AshU5Nb

"Additionally, if you have at least 15 years of service with an employer and have made average annual contributions of less than $5,000, the IRS permits an additional lifetime "catch-up" amount of $15,000 that you can use in $3,000 per year increments."

If they do not fix this issue in TT Tax this year, I may be returning my version to Costco.
Last year - those of us that took advantage of 403 and/or 457 Age Based Contributions had to print and snail mail returns and were not able to use e-file which is a benefit of TT that we pay for and do not receive.

Ridiculous.

What is the ETA of the software update TT?
- What do you have to say???

racerock11
Returning Member

Why does TurboTax red-flag the 457(b) maximum 3 year catchup contribution of $36,500?

That link does not work.

In the end, when is TT going to fix their software to account for the two age based contributions allowed for in:
- 403 - can be into the upper 30's
- 457 - 3 years to go and you can defer an additional 3K.

Even TT themselves have finally publicly acknowledged they know about this (I have for 2 years and my wife is taking advantage of both:

https://turbotax.intuit.com/tax-tips/retirement/are-403b-contributions-tax-deductible/L8AshU5Nb

"Additionally, if you have at least 15 years of service with an employer and have made average annual contributions of less than $5,000, the IRS permits an additional lifetime "catch-up" amount of $15,000 that you can use in $3,000 per year increments."

If they do not fix this issue in TT Tax this year, I may be returning my version to Costco.
Last year - those of us that took advantage of 403 and/or 457 Age Based Contributions had to print and snail mail returns and were not able to use e-file which is a benefit of TT that we pay for and do not receive.

Ridiculous.

What is the ETA of the software update TT?
- What do you have to say???

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