Yes, TurboTax does not understand/recognize special "Catch-Up Provisions".
Retirement Topics 457b Contribution Limits | Internal Revenue Service (irs.gov)
While the normal elective deferral limit is $19,500 (in 2020 and 2021), you can contribute more under two separate catch-up provisions, though only one of them can be used in each tax year.
One of them is called "Age 50 Catch-up" which "allows a participant who is at least age 50 before the end of the tax year to make additional contributions of $6,500, for a maximum of $26,500". The other one is called "Special 3-Year Catch-Up" which "allows a participant who meets special conditions and has not been contributing the maximum in previous tax years to contribute up to his or her Normal Retirement Age. The current annual limit is $39,000 or the amount of Catch-Up credit available to you, whichever is less.
IRS regulations state the Age 50 Catch-Up Provision cannot be used in the same calendar year as the Special 3-Year Catch-Up Provision."
TurboTax thinks I contributed too much and throws an error, which is really frustrating. I too have to file manually, which is really a hassle. Please fix these Turbotax.
