457b allowance

[suandjames]

My Turbo tax return was rejected.

It turned out that my contribution to 457b was $24500, which exceeds the normal allowance of $18500.

I was allowed to contribute $24500 as I am older (57 years old).

The Turbotax recognizes this as an error and keeps on rejecting to the e-filing step.

How do I fix this problem?

Thanks a lot for the help! 

[macuser_22]

This has been resolved on an update scheduled for tomorrow so check back on 4/6/19 after the update has been applied.

Incorrect Contribution Limit for 457(b) Catch-up Deferrals

TurboTax is calculating an incorrect contribution limit for customer who:

• Are over 50 and their plans allow for catch-up contributions and
• Have a governmental 457(b) and
• Contributed $18,500 to the 457(b) and made additional Designated Roth contributions to the 457(b) or
• Contributed more than $18,500 in Designated Roth contributions to the 457(b)

Customers with a nongovernmental 457(b) are not impacted and have a reduced contribution limit of $18500.

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This issue is scheduled to be fixed in an update that is currently planned to be released on 4/5/2019.

 Please click here to receive email notifications when any updates related to this issue become available.

[MJS]

I am having the exact same problem.  And today is April 7.  Because of my age I can contribute up to $37,000 in a catch up provision.  Is there any fix in the works for this? If not I guess I will have to file using paper.

"There’s also a separate catch-up contribution that benefits soon-to-be retirees, if permitted by the 457 plan. If you’re within three years of the plan’s “normal retirement age,” you can save double the annual limit for three years as long as you haven’t maxed out your contributions in the past. If you’re eligible, that brings your maximum contribution level to $37,000 for 2018—or up to $111,000 over three years."

[macuser_22]

@MJS- According to TurboTax - this has been resolved on 4/5/19.

https://ttlc.intuit.com/questions/4701847-resolved-incorrect-contribution-limit-for-457-b-catch-up-d...

If you are still having problems I suggest calling customer support.

Here is a TurboTax FAQ for contacting customer support.

https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number

[MJS]

Thanks. It turns out my problem is a bit different. Since I am within 3 years of retirement I am allowed for make even great "catch up provision." 

"There’s also a separate catch-up contribution that benefits soon-to-be retirees, if permitted by the 457 plan. If you’re within three years of the plan’s “normal retirement age,” you can save double the annual limit for three years as long as you haven’t maxed out your contributions in the past. If you’re eligible, that brings your maximum contribution level to $37,000 for 2018—or up to $111,000 over three years."  So my maximum limit is $37,000 for 2018.  It seems like I should be able to override TurboTax (which tells me I am beyond the contribution limit and must fix it)  and file anyway but no luck.  I got the return to print so I can always resort to filing my mail.

[macuser_22]

@MJS- You cannot e-file with overrides.   Your only option at this time is to print and mail file.

[TER]

Turbotax will not let me file because it incorrectly is assigning governmental 457b contributions to a non-governmental plan. Any suggestions?

[macuser_22]

@TER- TurboTax does not assign anything.   Your employer does on your W-2.    A 457(b) will have a code G on  box 12 unless is is a designated Roth 457(b) then is would be a code EE.

[NoMoreTT]

Same problem here - I reported it to Turbo Tax and they are telling me that their software is correct (which it isn't) and that I will have to file by mail. I guess that means that I will not bother buying Turbo Tax next year since they aren't willing to check the IRS publications and make the corrections to their program.

[NoMoreTT]

I had the same problem and spent an hour on the phone with a Turbo Tax rep, who understood what I was saying (she was looking at the IRS publication) and was going to pass my info up the chain of command to get their program fixed to accept the higher limit. However, I got an email this morning telling me that their program is correct and I am the one who is wrong, so now I will have to file a paper return and I won't bother buying Turbo Tax next year.