topic @dmertz in Retirement tax questions

I placed POST-tax dollars into a 403b and 457b, will I be penalized for this? I placed $18500 into each account, a total of $37000.

lindsay-burt-07 — Thu, 06 Jun 2019 07:55:56 GMT

How did you do that? A 403b, at least, should not legally...

Opus 17 — Thu, 06 Jun 2019 07:55:57 GMT

How did you do that? A 403b, at least, should not legally accept extra payments. Only payments made via payroll deduction.

If your plan allows after tax deductions, that sounds like a Roth account. There’s nothing wrong with that. It means you pay tax on the money going in instead of when you take it out.

I was able to place $18500 post-tax dollars into a 403b a...

lindsay-burt-07 — Thu, 06 Jun 2019 07:55:59 GMT

I was able to place $18500 post-tax dollars into a 403b and another $18500 post tax into a 457b. I thought that it would be okay because I was allowed to do it through my employer retirement set up but when I am filing my taxes on turbotax it says I will be penalized

@dmertz

Opus 17 — Thu, 06 Jun 2019 07:56:00 GMT

@dmertz

Items reported with codes BB and EE in box 12 of your W-2...

dmertz — Thu, 06 Jun 2019 07:56:01 GMT

Items reported with codes BB and EE in box 12 of your W-2 are Roth contributions to the 403(b) and 457(b), respectively, and do not reduce the amount that your employer reports in box 1 of your W-2.

Item reported with codes E and G in box 12 of your W-2 are elective deferrals to the 401(k) and 457(b), respectively, and are pre-tax, not post tax, because your employer excludes these amounts from the amount in box 1 of your W-2.

TurboTax presently has a bug that flags maximized 457(b) contributions combined with maximized contributions to another type of qualified retirement plan such as a 403(b) as excess contributions because they exceed $18,500 when, in fact, the permissible total is $37,000. To e-file you'll need to wait for the TurboTax developers to fix this, otherwise you'll need to file by mail. There might be a fix in the April 5 update.

I have the same issue and the program won't allow me to s...

anna_stockton — Thu, 06 Jun 2019 07:56:02 GMT

I have the same issue and the program won't allow me to select the option to file by mail. Is there a way to force it to print and allow filing by mail?

I am having this same issue as well. Should I request an...

jsimmons721 — Thu, 06 Jun 2019 07:56:04 GMT

I am having this same issue as well. Should I request an extension?

Looks like they fixed it because TurboTax allowed me to e...

anna_stockton — Thu, 06 Jun 2019 07:56:05 GMT

Looks like they fixed it because TurboTax allowed me to e-file.

I am using TurboTax Deluxe, but my last update is 4/3/201...

jsimmons721 — Thu, 06 Jun 2019 07:56:07 GMT

I am using TurboTax Deluxe, but my last update is 4/3/2019. Are you using the online version?

I just tried and still get the following message that won...

jsimmons721 — Thu, 06 Jun 2019 07:56:08 GMT

I just tried and still get the following message that won't let me e-file - Forms w-2 & w-2g Summary: Gov 457 deferrals - Tp $37000 is more than the allowed $245000 for a government 457(b) plan. Please check your entries on your W2 for government 457(b) plans. However, $37,000 is the maximum per IRS.

I am using the online version.

anna_stockton — Thu, 06 Jun 2019 07:56:09 GMT

I am using the online version.

Thank you. I am using the PC installed version, which fai...

jsimmons721 — Thu, 06 Jun 2019 07:56:10 GMT

Thank you. I am using the PC installed version, which fails due to the above item. TurboTax - is the fix to be available soon?

I'm having the same problem on up to date TurboTax on a M...

nedrum — Thu, 06 Jun 2019 07:56:12 GMT

I'm having the same problem on up to date TurboTax on a Mac. It won't let me e-file. TurboTax, we need a fix, please.

I am stuck with the online version. Wasn't the bug fixed...

oan2510 — Thu, 06 Jun 2019 07:56:12 GMT

I am stuck with the online version. Wasn't the bug fixed on 4/5/19?

The bug has not yet been fixed, at least not on the Mac v...

nedrum — Thu, 06 Jun 2019 07:56:14 GMT

The bug has not yet been fixed, at least not on the Mac version. TurboTax, what do we do, demand our money back for TurboTax and the state e-file charge? This is ridiculous. Nine days until the deadline and nothing.

The special catch-ups are still a problem. The original...

dmertz — Thu, 06 Jun 2019 07:56:15 GMT

The special catch-ups are still a problem. The original question involved only regular contributions and regular catch-ups, and those are now handled properly. Given the nearness of the regular filing deadline and Intuit typically freezing the software within 2 weeks of the filing deadline, my suggestions are to request a filing extension or to print and mail.

This problem is also impacting my NYS return, since I am...

jsimmons721 — Thu, 06 Jun 2019 07:56:21 GMT

This problem is also impacting my NYS return, since I am unable to e-file my state until I file my federal 1st. Now what do I do because TurboTax says I have to e-file my NYS return?

I have the disc version and the bug is still not fixed. P...

kguz1955 — Thu, 06 Jun 2019 07:56:23 GMT

I have the disc version and the bug is still not fixed. Please inform users the ETA of the fix.

Will Turbotax be issuing refunds for faulty software?

kguz1955 — Thu, 06 Jun 2019 07:56:25 GMT

Will Turbotax be issuing refunds for faulty software?

You need to call TurboTax. This question is just going ou...

anna_stockton — Thu, 06 Jun 2019 07:56:27 GMT

You need to call TurboTax. This question is just going out to other users. You will get a better response if you call directly.