Miscalculation of elective deferral contributions. Code: 613 717

[robdii]

The highlights of limitations that remain unchanged from 2015 include the following:
The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $18,000.

However, I only contributed around $10,000 - about $8,000 less than the maximum allowed - and the TurboTax software calculated that an excess contribution and assessed a penalty.

How is this possible, and how is it corrected?

[dmertz · Accepted solution]

Enter items shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.  Do not enter them under Deductions & Credits.  Your employer already excluded your elective deferrals from the amount reported in box 1 of your W-2.