Retirement Contribution overpayment warning

Forum|Forum|3 years ago
February 12, 2023
4 replies
24 views

Hello,

As I go through my tax, I get this message regarding overpayment of retirement contributions by $2,996.

It says I contributed $23496 to my retirement plan (matches box 12a on w-2 where it has a letter "E" with 23,496). It says I was allowed $20,500 in 2022.

I qualified for the 15 years catch up plan (been over 15 years with the same company) so I made the almost extra $3000 approved by Tiaa-Cref. I work for education under the 403b managed by Tiaa-Cref. I am under 50 years old.

What should I do? Do I just continue and ignore this message? It tells me to read IRS Publication 560.

Thanks ahead.

DanaB27

Employee Tax Expert

If you have verified that you qualify for the 15-year catch-up plan and didn't have an excess deferral then you can ignore TurboTax's warning. An excess deferral won't cause a penalty like an excess IRA contribution; therefore, there isn't anything else you need to do.

Please see Pub 525 for additional information on excess deferrals.

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tractngAuthor

Level 4

Thank you so much. This year I got a letter from HR saying I qualified for the 15 years catch up plan, however last year (2022 tax year, the one I am posting about) I didn't get any letter. HR approved that with the adjusted contribution in their system. Should I chase the letter down to keep it for reference?

Edit: the plan is 403b.