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Level 1
posted Mar 1, 2020 5:27:40 AM

Overpayment 403b because employer and employee contribution combined

On my W-2 it shows my employers and employee's contributions combined and as a result TurboTax thinks I over contributed above the $19,000 employee contribution.   However the employer & employee contribution  cannot exceed the combined $

56,000.   Is this a problem with my W-2 and my employer needs to delignate my contribution from theirs or is there somewhere in TurboTax to delignate the amount that was employer vs. employee?

0 3 815
3 Replies
Expert Alumni
Mar 1, 2020 6:20:13 AM

Yes, your W-2 should have reported only your 403(b) elective deferrals on your W-2, in box 12 with a code of E.  You should ask your employer for a corrected W-2.

 

See IRS Publication 571, Tax-Sheltered Annuity Plans for the rules.

Level 1
Mar 1, 2020 6:31:06 AM

It does show Box E for the contribution but it shows the employer and employee contribution all together as one lump.    As a result TurboTax is saying that my contribution was over the limit when my contribution was under the $19,000 cap I am allowed and the employers contribution was below the cap too.   Should the employer have broken them out in some way or is there somewhere in Turbo tax to designate what portion was mine and what portion was my employer?

Level 1
Mar 1, 2020 6:32:09 AM

Oh wait I just reread your post.  They should have reported only "My contributions".   Thanks I will check in with my employer on Monday