topic What is the maximum elective deferral to a 403(b)? in Get your taxes done using TurboTax

What is the maximum elective deferral to a 403(b)?

guz1 — Tue, 03 Feb 2026 10:02:48 GMT

15-year of service catch-up contribution to a 403(b)

Re: What is the maximum elective deferral to a 403(b)?

MinhT1 — Tue, 18 Feb 2025 19:12:54 GMT

For 2024, the maximum contribution for a 403(b) plan is $23,000 for an employee under age 50. For those aged 50 or over, there is a maximum catch-up contribution of $7,500.

The IRS also says:

If permitted by the 403(b) plan, an employee who has at least 15 years of service with the same eligible 403(b) employer - a public school system, hospital, home health service agency, health and welfare service agency, church, or convention or association of churches (or associated organization), has a 403(b) elective deferral limit that is increased by the lesser of:

$3,000,
$15,000, reduced by the amount of additional elective deferrals made in prior years because of this rule, or
$5,000 times the number of the employee’s years of service for the organization, minus the total elective deferrals made for earlier years.

Please read this IRS document for more information.

Re: What is the maximum elective deferral to a 403(b)?

guz1 — Tue, 18 Feb 2025 20:06:31 GMT

That does not take into account the 15-year of service catch-up contribution of $3,000.
TurboTax is not recognizing this allowable contribution to a 403(b).

Re: What is the maximum elective deferral to a 403(b)?

guz1 — Tue, 18 Feb 2025 20:11:07 GMT

TurboTax says that I have an overpayment of $3,000. The program is not correct.

Re: What is the maximum elective deferral to a 403(b)?

KeshaH — Wed, 19 Feb 2025 00:58:55 GMT

If you'd like, we can look at your return and see exactly what you see to help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

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Please reply to this message with your token so that we can further assist you. Let us know all the states, if any, are included on the return.

Re: What is the maximum elective deferral to a 403(b)?

guz1 — Wed, 19 Feb 2025 12:39:33 GMT

Hi, I am using TurboTax Online. After I log in, I do not see Tax Tools on the left hand panel. I've tried using three different browsers with the same result. I see "Live Tax Advice" on the top right toolbar. I searched Tax Tools and nothing came up. I would love to resolve this. thank you for your help.

The left hand panel options are:
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Re: What is the maximum elective deferral to a 403(b)?

KeshaH — Wed, 19 Feb 2025 12:49:08 GMT

Click on Review/Edit or Pick up where I left off on any of the tax return topics to open up your return. Then you'll see Tax Tools on the left hand panel.

Re: What is the maximum elective deferral to a 403(b)?

guz1 — Wed, 19 Feb 2025 15:29:16 GMT

Thank you for that. The token number is 1274454
The issue is my wife's W-2 Box 12 E-Elective deferrals to 403(b) is $33,500
I get the error message that says "The maximum salary deferral retirement plans for 2024 is $30,500." It then points me "Read IRS Publications 560 Retirement Plans for small business". Apparently TurboTax also generated Form 5330 for the excess contribution of $3,000.
The correct IRS Publication is 571 Tax-Sheltered Annuity Plans (403(b) Plans For Employees of Public
Schools and Certain Tax-Exempt Organizations. 4. Limit on Elective Deferrals
The general limit for 2024 is $23,000
The 15-years of service catch up is $3,000
The 50 or over make-up contribution for 2024 is $7,500
Total allowable 403(b) for 50+ with 15 years of service is $33,500.

TurboTax is not picking up that the deferral is into a 403(b) nor the 15-years of service catch up of $3,000.
Thanks again.

Re: What is the maximum elective deferral to a 403(b)?

guz1 — Fri, 21 Feb 2025 15:21:36 GMT

Is TurboTax going to address this issue?

Re: What is the maximum elective deferral to a 403(b)?

KeshaH — Tue, 25 Feb 2025 00:14:14 GMT

Thank you for providing your token number. We will take a closer look at this issue and get back with you.

Re: What is the maximum elective deferral to a 403(b)?

guz1 — Tue, 04 Mar 2025 16:46:21 GMT

Any update on this?

Re: What is the maximum elective deferral to a 403(b)?

Opus 17 — Tue, 04 Mar 2025 16:55:50 GMT

@guz1 wrote:

Is TurboTax going to address this issue?

Practically, no. Turbotax does not, and has never, recognized the extra $3000 catch-up for a 403b. However, this is a non-issue. Just ignore the warning and file your tax return. It will not cause any change in your tax or mistake in your return. (That is to say, I don't believe turbotax can add the $3000 back to your income automatically. It may warn you to do so, you can ignore the warning.)

Re: What is the maximum elective deferral to a 403(b)?

guz1 — Tue, 04 Mar 2025 20:31:58 GMT

Thanks Opus 17.
I was concerned that TurboTax automatically generated IRS Form 5330 for the excess contribution of $3,000.

Re: What is the maximum elective deferral to a 403(b)?

Opus 17 — Tue, 04 Mar 2025 20:36:09 GMT

@guz1 wrote:

Thanks Opus 17.
I was concerned that TurboTax automatically generated IRS Form 5330 for the excess contribution of $3,000.

I don't believe it does, however I will rely on another expert @dmertz to confirm.

Re: What is the maximum elective deferral to a 403(b)?

dmertz — Tue, 04 Mar 2025 22:31:55 GMT

TurboTax does not support Form 5330.

With regard to your individual tax return, Form 5330 would only apply if you made an uncorrected excess contribution to a self-employed retirement plan.

Re: What is the maximum elective deferral to a 403(b)?

guz1 — Wed, 05 Mar 2025 12:11:10 GMT

That's the problem. The error message that I get says "The maximum salary deferral retirement plans for 2024 is $30,500." It then points me to "Read IRS Publications 560 Retirement Plans for small business". TurboTax categorizes the deferral as a deferral into Retirement Plans into a small business and not into a 403(b).

Re: What is the maximum elective deferral to a 403(b)?

Opus 17 — Wed, 05 Mar 2025 14:41:12 GMT

@guz1 wrote:

That's the problem. The error message that I get says "The maximum salary deferral retirement plans for 2024 is $30,500." It then points me to "Read IRS Publications 560 Retirement Plans for small business". TurboTax categorizes the deferral as a deferral into Retirement Plans into a small business and not into a 403(b).

What is the code in box 12 of your W-2. It should be E or BB.

If the "help text" refers to the wrong topic, that's an issue that maybe can be fixed. However, if your contributions are actually to a workplace 403b, and are coded correctly on your W-2, then you can ignore the overcontribution message and associated advice, because whether the advice is right or wrong, you don't actually have an over contribution.

Re: What is the maximum elective deferral to a 403(b)?

guz1 — Wed, 05 Mar 2025 15:05:03 GMT

The W-2 is coded correctly. W-2 Box 12 E-Elective deferrals to 403(b). How can I find out if TurboTax generated IRS form 5330 since the error message says, "The maximum salary deferral retirement plans for 2024 is $33,500. Read IRS Publication 560 Retirement Plans for small businesses."

No acknowledgment of the deferral into a 403(b) at all even though the W-2 Box 12 has the correct code E-Elective deferrals to 403(b).

Re: What is the maximum elective deferral to a 403(b)?

Opus 17 — Wed, 05 Mar 2025 17:40:22 GMT

@guz1 wrote:

The W-2 is coded correctly. W-2 Box 12 E-Elective deferrals to 403(b). How can I find out if TurboTax generated IRS form 5330 since the error message says, "The maximum salary deferral retirement plans for 2024 is $33,500. Read IRS Publication 560 Retirement Plans for small businesses."

No acknowledgment of the deferral into a 403(b) at all even though the W-2 Box 12 has the correct code E-Elective deferrals to 403(b).

As @dmertz explained, "Turbotax does not support form 5330." That means it does not contain the form and can't prepare it even if it was needed. If you did need form 5330 with your tax return, you would need to use different software or see a tax preparer. If you need more proof than that, print your return before you file it and verify the form is not in your return.

Re: What is the maximum elective deferral to a 403(b)?

AnnetteB6 — Sun, 23 Mar 2025 17:23:15 GMT

Thank you for sharing your token number. After taking a closer look, there were no errors generated related to the 403b elective deferrals that I could see.

If you are still experiencing a problem, please share further details about where you are in the process when the error appears. Otherwise, it appears it may have been corrected with a program update.

@guz1