topic Re: 401K Excess Contribution in Retirement tax questions

401K Excess Contribution

Chamfer — Mon, 20 Apr 2020 20:40:15 GMT

I was 71 and still working in 2019. I contributed $3000 to my company's 401K (Box 12); line 12a of my W-2 has code D. TurboTax considers the $3000 an excess contribution because of my age but 401K fund says that the contribution is allowed because I'm still working and the amount is less than the limit. Whose right? If contribution is pre-tax how do I get TurboTax to treat it as such?

Re: 401K Excess Contribution

macuser_22 — Mon, 20 Apr 2020 21:38:42 GMT

Where do you see it as an excess contribution?

You did not enter it into the IRA contribution section did you? It ONLY gets entered on the W-2 section in box 12, nowhere else.

Re: 401K Excess Contribution

Chamfer — Mon, 20 Apr 2020 23:45:26 GMT

When I'm editing the retirement section of deductions.

Re: 401K Excess Contribution

macuser_22 — Mon, 20 Apr 2020 23:47:44 GMT

You do not enter it there. Only in box 12 on the W-2 - nowhere else. A 401(k) is NOT an IRA.

Re: 401K Excess Contribution

Chamfer — Tue, 21 Apr 2020 00:09:22 GMT

When I update Retirements and Investments, Traditional and Roth Contributions the 2nd screen is Did Mark Contribute To a Traditional IRA - I clicked YES. Then in the screen Tell Us How Much You Contributed, the amount is blank and I entered the amount on my W-2. After screens asking about my Roth accounts, An Age Limit Prevents Your IRA Contribution comes up and states that IRA contribution is an excess contribution.

Re: 401K Excess Contribution

macuser_22 — Tue, 21 Apr 2020 00:18:37 GMT

Well go back there and UNCLICK the Traditional IRA box and press continue to REMOVE the contribution that does not belong there.

Re: 401K Excess Contribution

Chamfer — Tue, 21 Apr 2020 18:21:08 GMT

Thanks for your help!