457b Contribution Limits

Forum|Forum|2 years ago
February 15, 2024
2 replies
19 views

The IRS Publication shows 22,500 as the limit for 2023, why is turbo tax showing an over contribution at 7800.00? The catch up limit is 7500.00 once you reach the 22,500.00 limit

RobertB4444

Level 15

It's the lesser of 100% of your includable compensation or the $22,500. Is your includable compensation higher than $7800?

Assuming that it is are you entering the contributions through a payroll deduction on your W2 or as a retirement plan contribution. If it is not through a W2 the system may be assuming that you are contributing to a traditional IRA. You will have to go back through the entries that you have made in order to make sure that you have told it what type of retirement plan this is correctly.

@joebair

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joebairAuthor

Level 2

Not sure of the definition of includable compensation. I did make sure that the 7800.00 is listed as a W2 entry Box 12 EE 457B. Thanks for the help

dmertz

Level 15

Make sure that you have entered amount shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax. Make sure that you have not entered it under Deduction & Credits as an IRA contribution. A 457(b) is not an IRA.