Turbo Tax rejected my return. I was allowed to contribute $37000 using 457(b) special “last 3-year catch-up” deferral, 2x the $18500. How do I fix this problem?

[NoMoreTT]

I spent an hour on the phone with an agent last week and went through the whole process that you did - the first person I spoke with verified the info from the IRS website and apologized for the trouble I was having trying to e-file. But, when she went to her supervisor, that person basically blew her off and said the issue had already been fixed (which it clearly had not!)

Seeing the number of posts relating to this problem, I suspect TurboTax is going to have a lot of long time customers who decide to go elsewhere next year. My issue is more with their attitude of ignoring people who tried to explain their error than with the error itself! I have lost confidence in their ability to accurately process my returns.

[thomas-taylor]

Turbo Tax has made it clear that they are not going to accommodate this, and we are left with having to print out and submit the returns by mail as the only option - end of story.  

I ended my Turbo Tax Advantage subscription largely because of the unapologetic attitude and refusing to acknowledge that they are in error.  I too will be looking into alternative tax preparation software for next year.

The customer service representative was very helpful but the software error messages spoke much more loudly.  In addition to getting my money back on the state e-file charges, I received a 10% discount of sorts (~$10) to cover the printing and mailing costs.  It ignores that hours of time spent trying to get this resolved but I didn't want to behave in a mean "Turbo Tax" fashion and wanted to put things to rest!

[FredC]

So I just spent 1hr and 57 min talking with a TurboTax representative. She was very professional and courteous but obviously could not resolve the bug in the software. She was advised by her supervisor that the Amazon download for TurboTax might be corrupted so we went through reinstalling the software that they just linked to my TurboTax account. Well after 3 tries, that did not work either and actually we uncovered another bug whereby the software would not relaunch after installing the update. Ironically, we went back to the Amazon link and after installation and updates, the software installed the updates and relaunched but the 457(b) bug was still there. Finally, I was advised to redo my taxes online with TurboTax and they will send me a service code so that I would do it for free. The issue here is even though I uploaded my 2017 TurboTax file, I have to re-enter all my 2018 information and essentially redo it all over and hopefully not encounter the 457(b) bug. They also refunded my State filing fee and sent me info on how to submit my e-receipt for the software that I purchased from Amazon so that I would get a refund. I also have been using TurboTax for over 20 years and even before when they were called MacInTax. Don't know if I'll give them a break next year but they should have fixed the 457(b) bug earlier in the tax season and not wait until this late hour to send us to the gallows.

[thomas-taylor]

QUESTION FOR TURBO TAX:  IS ANYONE READING THESE COMMENTS?  The user community provides some perspective and assistance, but we are in no way empowered to facilitate any actions.  It would be nice to know someone is listening and advocating for us.

[bigelow]

A person in another forum pointed us to this new FAQ, which acknowledges the problem, but punts the solution.  The link: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4732918">https://ttlc.intuit.com/questions/4732918</a>

The text:

403(b) and 457(b) Catch-up Contributions

403(b) and 457(b) plans offer special catch-up contributions beyond the IRS's $6000 catch-up contribution for those over 50.

Unfortunately, TurboTax does not support the additional catch-up contributions associated with 403(b) and 457(b) plans. The maximum contribution TurboTax allows for 403(b) and 457(b) plans is $18,500 for taxpayers under 50, or $24,500 for those 50 and older.

Roth contributions to 403(b) and 457(b) contributions are supported by TurboTax.

Workaround

Customers who have 403(b) or 457(b) contributions above TurboTax's limit will need to paper file.

[bigelow]

A person in another forum pointed us to this new FAQ, which acknowledges the problem, but punts the solution.  The link: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4732918">https://ttlc.intuit.com/questions/4732918</a>

The text:

403(b) and 457(b) Catch-up Contributions

403(b) and 457(b) plans offer special catch-up contributions beyond the IRS's $6000 catch-up contribution for those over 50.

Unfortunately, TurboTax does not support the additional catch-up contributions associated with 403(b) and 457(b) plans. The maximum contribution TurboTax allows for 403(b) and 457(b) plans is $18,500 for taxpayers under 50, or $24,500 for those 50 and older.

Roth contributions to 403(b) and 457(b) contributions are supported by TurboTax.

Workaround

Customers who have 403(b) or 457(b) contributions above TurboTax's limit will need to paper file.

[bkpd167]

I, too, have been trapped by the 3 year catch-up bug. I started on line with the free version, but quickly accepted that version would not work for me. I reentered all my information into the premier version of the software. When I ran into the bug and tried to call for assistance, somehow the automated TurboTax number was able to use my phone number and label me a "free" user. I could not talk to a person without paying another $29.99 for special assistance. After several hours of frustration using the on-line advice and your chat responses, I gave up and submitted a paper version, then disputed the efile charge with my credit card company. At least I was able to speak with a person with Mastercharge, and they cancelled the charge. Intuit has given me zero assistance for the purchase of their software.

[NoMoreTT]

Another unhappy customer TurboTax - I sure do hope they are reading these comments!

[FredC]

I went through the online Deluxe version, re-entered all my information and hit the bug again that kept going in circles over and over stating that the $24,500 was over the allowable limit. I gave up and will paper file. Shame on TurboTax!!

[jimbo-alley]

I have the same issue and am running out of time to file.  I have already paid TurboTax and am not happy with these results.

[thomas-taylor]

jimbo-alley - they are not going to address this.  You will have to print and send your returns.  I am planning to mail my returns today.

HOW TO GET A REFUND:  The customer service representatives are able to process a refund for the state e-file costs.  I also received a 10% refund on my software purchase (TTPremier) that gave me an additional $10 - which at least covers the printing and mailing costs.  

You will fill out the request on the web site.  They will issue a reference number and a phone number to call.  Once you call, if the wait time is too long, you can use the call back feature so you don't have to stay on the line.

[FredC]

I was finally able to resolve the issue. It turns out that there are two types of 457(b) plans, governmental and non-govermental. The former allows catch-up contributions to 457(b) but the other one does not. So I called my employer and was told that we have a governmental 457(b) plan. There is a question in TurboTax that asks specifically whether your employer is state or local government. I previously answered "No" to the question but when I answered correctly "Yes", I did not get the error about excess 457(b) contributions and I was able to file successfully my returns. I hope that this resolution will help others who may be in the same situation.

[thomas-taylor]

Unfortunately, that is not the case for the 3 year $37,000 catch-up.

[bigelow]

Good news: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4732918">https://ttlc.intuit.com/questions/4732918</a>.  Update coming 4/12.

[NoMoreTT]

Reading through the link you posted - still doesn't sound like this update will address the 2x annual limit for the final three years (up to 37K in 2018). But, I will hold off mailing in my return until after the update posts on April 12th. Guess someone at Turbo Tax IS reading these comment pages!