topic Maximum employer-provided 401K contributiion for over 55 (year 2019) in Deductions & credits https://ttlc.intuit.com/community/tax-credits-deductions/discussion/maximum-employer-provided-401k-contributiion-for-over-55-year-2019/01/1746782#M165303 <P><SPAN class="ILfuVd"><SPAN class="hgKElc">Hello, I'm over 50 and for 2019 I contributed 24985.00 to my employer provided 401K.&nbsp; I understand that is in keeping with the rules ($19,000 in 2019 plus catch-up contribution limits if you're 50 or older of <STRONG>$6,000</STRONG> for workplace plan), for a total of 25,000. So I'm within that. However, TurboTax will only recognize only a deducation of $12,155 and states I over-funded by $12,930. I have tried multiple times to enter the info and I always get the same result. Please help!<BR /></SPAN></SPAN></P> Tue, 24 Nov 2020 03:09:16 GMT GS1001 2020-11-24T03:09:16Z Maximum employer-provided 401K contributiion for over 55 (year 2019) https://ttlc.intuit.com/community/tax-credits-deductions/discussion/maximum-employer-provided-401k-contributiion-for-over-55-year-2019/01/1746782#M165303 <P><SPAN class="ILfuVd"><SPAN class="hgKElc">Hello, I'm over 50 and for 2019 I contributed 24985.00 to my employer provided 401K.&nbsp; I understand that is in keeping with the rules ($19,000 in 2019 plus catch-up contribution limits if you're 50 or older of <STRONG>$6,000</STRONG> for workplace plan), for a total of 25,000. So I'm within that. However, TurboTax will only recognize only a deducation of $12,155 and states I over-funded by $12,930. I have tried multiple times to enter the info and I always get the same result. Please help!<BR /></SPAN></SPAN></P> Tue, 24 Nov 2020 03:09:16 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/maximum-employer-provided-401k-contributiion-for-over-55-year-2019/01/1746782#M165303 GS1001 2020-11-24T03:09:16Z Re: Maximum employer-provided 401K contributiion for over 55 (year 2019) https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-maximum-employer-provided-401k-contributiion-for-over-55-year-2019/01/1746894#M165315 <P>That's a tough one, and I'm not sure anyone can figure it out from those numbers, since they don't really make any obvious sense.&nbsp; BUT some things to watch out for, (IF...if&nbsp; you are talking only about a traditional 401k and not a ROTH 401k&nbsp; )</P><P>_________________________</P><P>1) make sure you are using the Desktop software, and that you have run the software updates from the selections at the top of the TTX screen.</P><P>&nbsp;</P><P>2)&nbsp; Make sure you've entered that data ONLY as a part of your W-2 entries.&nbsp; Do not ...... do not double-enter those contributions on the <EM>Deductions&amp;Credits</EM> page as IRA contributions....401k contributions are <EM><U>not</U></EM> IRA contributions.</P><P>&nbsp;</P><P>3)&nbsp; If you are married, your spouse is working too, and you've entered your spouse's W-2....make absolutely sure you have not entered your spouse's W-2 as belonging to you. And then&nbsp; make sure your W-2 is not entered as belonging to that spouse either, (Could also delete the spouse's W-2 and see what happens about the over-contribution).</P><P>&nbsp;</P><P>4)&nbsp; Delete your entire W-2, and re-enter it again.....click in another box after each box entry to make sure every value records properly.&nbsp; Box 1 must be less than box 5, by at least 24985&nbsp; (some other pretax things can affect box 1, so it could be more.).&nbsp; Box 5 must have a value considerably&nbsp; greater than 24985.</P><P>&nbsp;</P><P>5) make sure box 12 on the W-2 shows a code D and 24985 as one of it's entries.</P><P>&nbsp;</P><P>6) ???? go back and check the birth year you entered for yourself on the <EM>Personal Info</EM> page in the software.</P><P>____________________</P><P>Beyond that, I can't think of much else that could be wrong.....unless you had ROTH-401K contributions, then some of the above doesn't help.&nbsp; &nbsp;( You did only work at one employer in 2019???&nbsp; IF you had two employers and both had 401k contributions, you might exceed the limits that way...but wouldn't likely be the numbers you showed)</P><P>&nbsp;</P><P>Also, you must be entering the exact data from your paper W-2 manually.....at this point in time (late Nov 2020) don't try to import a 2019 W-2 from a W-2 provider into the software.</P><P>&nbsp;</P><P>&nbsp;</P> Tue, 24 Nov 2020 17:03:08 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-maximum-employer-provided-401k-contributiion-for-over-55-year-2019/01/1746894#M165315 SteamTrain 2020-11-24T17:03:08Z Re: Maximum employer-provided 401K contributiion for over 55 (year 2019) https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-maximum-employer-provided-401k-contributiion-for-over-55-year-2019/01/1747033#M165325 <P>Just to add a bit of clarification to what <LI-USER uid="124"></LI-USER>&nbsp;said:&nbsp; you don't actually take a tax <EM>deduction</EM> for your 401K contributions.&nbsp; Instead, your employer doesn't include those amounts in your taxable income for the year.&nbsp; This means that <EM>your contributions have already been deducted from your income</EM> <EM>before tax is applied</EM>.&nbsp; Those contributions are normally reported in Box 12 of your W2, with code letter D.</P> Wed, 25 Nov 2020 14:42:57 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-maximum-employer-provided-401k-contributiion-for-over-55-year-2019/01/1747033#M165325 TomD8 2020-11-25T14:42:57Z Re: Maximum employer-provided 401K contributiion for over 55 (year 2019) https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-maximum-employer-provided-401k-contributiion-for-over-55-year-2019/01/1747492#M165355 <P>You refer to an "employer-provided 401(k)."&nbsp; However, that TurboTax is calculating a deduction for contributions to a 401(k) seems to imply that you are self-employed (either a sole proprietor or a partner in a partnership) and are reporting contributions to a self-employed 401(k) plan.&nbsp; There is no deduction on your individual tax return for 401(k) contributions made to a 401(k) plan of some other employer (including an S corp of which you might be a shareholder).</P><P>&nbsp;</P><P>Assuming that you are contributing to a self-employed 401(k) plan, in addition to the $19,000 regular employee contribution limit, $6,000 catch-up limit on employee contributions and the employer contribution limit, there is the limit imposed by net earnings from self-employment.&nbsp; If TurboTax is limiting your self-employed retirement deduction to $12,155, this implies that your net profit from self-employment is only $13,079.&nbsp; Your contribution to&nbsp;a self-employed 401(k) is not permitted to be more than your net profit minus the deductible portion of self-employment taxes.&nbsp; If your net profit is only $13,079, it's not clear where the money came from that you used to contribute the $12,930 that TurboTax is showing as an excess contribution since it did not come from your compensation.</P><P>&nbsp;</P><P>Note that if you are partner in a partnership, only your income from the partnership that is net profit from self-employment, shown with code A in box 14 of the Schedule K-1 (Form 1065) is income on which your self-employed retirement contribution can be based.&nbsp; Other types of income from the partnership are not part of your compensation and do not factor into the calculation of your maximum permissible self-employed retirement contribution.</P><P>&nbsp;</P><P>Assuming that you did make a $12,930 excess deferral, that amount is not deductible and you'll pay taxes on that money again when later distributed from the 401(k).&nbsp; Also, the fact that the plan administrator allowed you to make an excess contribution could result in disqualification of the plan.</P> Thu, 26 Nov 2020 15:11:04 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-maximum-employer-provided-401k-contributiion-for-over-55-year-2019/01/1747492#M165355 dmertz 2020-11-26T15:11:04Z
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topic Maximum employer-provided 401K contributiion for over 55 (year 2019) in Deductions & credits
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https://ttlc.intuit.com/community/tax-credits-deductions/discussion/maximum-employer-provided-401k-contributiion-for-over-55-year-2019/01/1746782#M165303
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<P><SPAN class="ILfuVd"><SPAN class="hgKElc">Hello, I'm over 50 and for 2019 I contributed 24985.00 to my employer provided 401K.&nbsp; I understand that is in keeping with the rules ($19,000 in 2019 plus catch-up contribution limits if you're 50 or older of <STRONG>$6,000</STRONG> for workplace plan), for a total of 25,000. So I'm within that. However, TurboTax will only recognize only a deducation of $12,155 and states I over-funded by $12,930. I have tried multiple times to enter the info and I always get the same result. Please help!<BR /></SPAN></SPAN></P>
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Maximum employer-provided 401K contributiion for over 55 (year 2019)
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https://ttlc.intuit.com/community/tax-credits-deductions/discussion/maximum-employer-provided-401k-contributiion-for-over-55-year-2019/01/1746782#M165303
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<P><SPAN class="ILfuVd"><SPAN class="hgKElc">Hello, I'm over 50 and for 2019 I contributed 24985.00 to my employer provided 401K.&nbsp; I understand that is in keeping with the rules ($19,000 in 2019 plus catch-up contribution limits if you're 50 or older of <STRONG>$6,000</STRONG> for workplace plan), for a total of 25,000. So I'm within that. However, TurboTax will only recognize only a deducation of $12,155 and states I over-funded by $12,930. I have tried multiple times to enter the info and I always get the same result. Please help!<BR /></SPAN></SPAN></P>
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<pubDate>Tue, 24 Nov 2020 03:09:16 GMT</pubDate>
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<dc:date>2020-11-24T03:09:16Z</dc:date>
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Re: Maximum employer-provided 401K contributiion for over 55 (year 2019)
</title>
<link>
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-maximum-employer-provided-401k-contributiion-for-over-55-year-2019/01/1746894#M165315
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<P>That's a tough one, and I'm not sure anyone can figure it out from those numbers, since they don't really make any obvious sense.&nbsp; BUT some things to watch out for, (IF...if&nbsp; you are talking only about a traditional 401k and not a ROTH 401k&nbsp; )</P><P>_________________________</P><P>1) make sure you are using the Desktop software, and that you have run the software updates from the selections at the top of the TTX screen.</P><P>&nbsp;</P><P>2)&nbsp; Make sure you've entered that data ONLY as a part of your W-2 entries.&nbsp; Do not ...... do not double-enter those contributions on the <EM>Deductions&amp;Credits</EM> page as IRA contributions....401k contributions are <EM><U>not</U></EM> IRA contributions.</P><P>&nbsp;</P><P>3)&nbsp; If you are married, your spouse is working too, and you've entered your spouse's W-2....make absolutely sure you have not entered your spouse's W-2 as belonging to you. And then&nbsp; make sure your W-2 is not entered as belonging to that spouse either, (Could also delete the spouse's W-2 and see what happens about the over-contribution).</P><P>&nbsp;</P><P>4)&nbsp; Delete your entire W-2, and re-enter it again.....click in another box after each box entry to make sure every value records properly.&nbsp; Box 1 must be less than box 5, by at least 24985&nbsp; (some other pretax things can affect box 1, so it could be more.).&nbsp; Box 5 must have a value considerably&nbsp; greater than 24985.</P><P>&nbsp;</P><P>5) make sure box 12 on the W-2 shows a code D and 24985 as one of it's entries.</P><P>&nbsp;</P><P>6) ???? go back and check the birth year you entered for yourself on the <EM>Personal Info</EM> page in the software.</P><P>____________________</P><P>Beyond that, I can't think of much else that could be wrong.....unless you had ROTH-401K contributions, then some of the above doesn't help.&nbsp; &nbsp;( You did only work at one employer in 2019???&nbsp; IF you had two employers and both had 401k contributions, you might exceed the limits that way...but wouldn't likely be the numbers you showed)</P><P>&nbsp;</P><P>Also, you must be entering the exact data from your paper W-2 manually.....at this point in time (late Nov 2020) don't try to import a 2019 W-2 from a W-2 provider into the software.</P><P>&nbsp;</P><P>&nbsp;</P>
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<pubDate>Tue, 24 Nov 2020 17:03:08 GMT</pubDate>
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<dc:date>2020-11-24T17:03:08Z</dc:date>
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Re: Maximum employer-provided 401K contributiion for over 55 (year 2019)
</title>
<link>
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-maximum-employer-provided-401k-contributiion-for-over-55-year-2019/01/1747033#M165325
</link>
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<P>Just to add a bit of clarification to what <LI-USER uid="124"></LI-USER>&nbsp;said:&nbsp; you don't actually take a tax <EM>deduction</EM> for your 401K contributions.&nbsp; Instead, your employer doesn't include those amounts in your taxable income for the year.&nbsp; This means that <EM>your contributions have already been deducted from your income</EM> <EM>before tax is applied</EM>.&nbsp; Those contributions are normally reported in Box 12 of your W2, with code letter D.</P>
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<dc:creator>TomD8</dc:creator>
<dc:date>2020-11-25T14:42:57Z</dc:date>
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Re: Maximum employer-provided 401K contributiion for over 55 (year 2019)
</title>
<link>
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-maximum-employer-provided-401k-contributiion-for-over-55-year-2019/01/1747492#M165355
</link>
<description>
<P>You refer to an "employer-provided 401(k)."&nbsp; However, that TurboTax is calculating a deduction for contributions to a 401(k) seems to imply that you are self-employed (either a sole proprietor or a partner in a partnership) and are reporting contributions to a self-employed 401(k) plan.&nbsp; There is no deduction on your individual tax return for 401(k) contributions made to a 401(k) plan of some other employer (including an S corp of which you might be a shareholder).</P><P>&nbsp;</P><P>Assuming that you are contributing to a self-employed 401(k) plan, in addition to the $19,000 regular employee contribution limit, $6,000 catch-up limit on employee contributions and the employer contribution limit, there is the limit imposed by net earnings from self-employment.&nbsp; If TurboTax is limiting your self-employed retirement deduction to $12,155, this implies that your net profit from self-employment is only $13,079.&nbsp; Your contribution to&nbsp;a self-employed 401(k) is not permitted to be more than your net profit minus the deductible portion of self-employment taxes.&nbsp; If your net profit is only $13,079, it's not clear where the money came from that you used to contribute the $12,930 that TurboTax is showing as an excess contribution since it did not come from your compensation.</P><P>&nbsp;</P><P>Note that if you are partner in a partnership, only your income from the partnership that is net profit from self-employment, shown with code A in box 14 of the Schedule K-1 (Form 1065) is income on which your self-employed retirement contribution can be based.&nbsp; Other types of income from the partnership are not part of your compensation and do not factor into the calculation of your maximum permissible self-employed retirement contribution.</P><P>&nbsp;</P><P>Assuming that you did make a $12,930 excess deferral, that amount is not deductible and you'll pay taxes on that money again when later distributed from the 401(k).&nbsp; Also, the fact that the plan administrator allowed you to make an excess contribution could result in disqualification of the plan.</P>
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<pubDate>Thu, 26 Nov 2020 15:11:04 GMT</pubDate>
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