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mvoei
New Member

How do I adjust for excess witholding due to TAMRA rule?

turbotax says that I had excess with holding. How do I adjust for TAMRA rule with holding?
5 Replies
ErnieS0
Employee Tax Expert

How do I adjust for excess witholding due to TAMRA rule?

I don't understand your question. Did you have an excess 401(k) contribution.

 

If you have a 2020 excess 401(k) contribution see the answer by awesome Tax Expert @KathrynG3401k over contribution

 

If you received 1099-Rs for an excess 2019 contribution see the answer in Incorrect code in 2019 1099-R box 7.

mvoei
New Member

How do I adjust for excess witholding due to TAMRA rule?

No, I do not have excess contribution, though the 403 (b) contribution amount is over the typical IRS limit of $19,500 plus $6,500 for the catch up, because I contributed more via a  5%employee/ 9% employer match plan. Because the University I work for has a mandatory rule after 5 years of working,  those contributions no longer count towards  IRS limits. This IRS rule is called the TAMRA rule.  I have heard that self-filings like turbo tax are not built to understand these exceptions, and the program is telling me that I overcontributed by $4200.  I need to make some sort of adjustment, possibly by manually entering the W-2 information, which I had imported.  The question then is where and what do I manually adjust., and can I do this on the on-line TurboTax or do I need to do it off line, where I can access all the forms?

ErnieS0
Employee Tax Expert

How do I adjust for excess witholding due to TAMRA rule?

We'd have to look at your return to see how TurboTax is handling this. I suggest scheduling a call with one of our Tax Experts.

 

pararamids
New Member

How do I adjust for excess witholding due to TAMRA rule?

I have this exact same situation.  TurboTax is telling me I over contributed, but in fact, according to IRS law (TAMRA) I did not.

I'm not sure how to get TurboTax fixed on this.  I haven't paid the extra money for "Live" - I'm just hoping that the software can be fixed to correctly report the information?

mvoei
New Member

How do I adjust for excess witholding due to TAMRA rule?

I followed the advice of a friend who is a live help person, which is basically ignore it.  The message is an alert, which you don't need to respond to.  IRS knows the tax law and will process properly.

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