elective deferral to 401k error

[jmorizio]

Hello,

I had 2 employers in 2018 and exceeded by 401k max contribution of $24500. 

I added the excess deferral amount using the procedure below:

• Scroll down to "Less Common Income"
• Select "Miscellaneous Income" and click Start or Update
• Select "Other income not already reported on a Form W-2 or Form 1099" and click on Start
• Answer the Question "Did you receive any other wages?  Yes
• Click through the questions until you get to "Any Other Earned Income"
• Answer Yes to "Did you earn any other wages?
• Indicate "Other" as Source of Other Earned Income and click Continue
• For the description enter "2018 Excess 401K Deferrals" and click on Done

However I still get an error when running Federal error check stating I am over the 401k max limit

so I cannot submit my taxes. How do I fix this?....Jim

[macuser_22 · Accepted solution]

TurboTax has released a FAQ on this issue - scheduled for 4/5/2019

Excess 401(k) Contribution Preventing e-File

https://ttlc.intuit.com/questions/4698409-excess-401-k-contribution-preventing-e-file?jump_to=answer...

[jmorizio]

Thank you macuser_22...

So does this mean on 4/5 I can see a new procedure on how to get over 

this error check issue so then I can e-file ?

[macuser_22]

No.  After TurboTax fixes the bug on 4/5 then you should be able to e-file without the error.   Updates are usually at night so when  they say 4/5 it might not be until late on 4/5 so try on 4/6.

[timothys_tax]

macuser_22,

I have a related error with different circumstances. The error says "Elective deferrals - TP $27150 is more than the allowed $18500 for a 401K plan." I contributed $9150 to 401K (line 12b of the Forms W-2 & W-2G Summary). And $9000 each to Roth 401K and Roth 457 ($18000 combined, line 12c). Turbotax seems to impose the $18500 limit on the total of line 12b and 12c. This is incorrect. Would this also be fix with the 4/5 release?

Much appreciate the assistance.

[macuser_22]

@timothys_tax- No.

There is a new signup FAQ for that:

https://ttlc.intuit.com/questions/4714275-error-in-review-elective-deferrals-is-more-than-the-allowe...

Error in Review: Elective deferrals is more than the allowed $18500 for 401k plan

Some customers with a mix of 403(b), 457(b) contributions and Roth contributions to either or both accounts are seeing an error in Review. Although these  customers are below the annual contribution limits, TurboTax states that the customer is over the limit of $18,500. This error is seen of the W2/W2G Summary, line 12b and 12c.

Who is impacted?

You may be affected if your W-2, Box 12 has Code E, BB, and EE.

Customers who receive an error on the W2/W2G Summary Worksheet, line 12b and 12c should sign up below.

If you have contributions to a 403(b), 457(b), and Roth contributions, but do not see an error on your W2/W2G Summary, you are not affected. An error on only line 12b or 12c (but not both) is not related to this issue.

Sign-up

We're working on a solution to this issue. Please click here to receive email notifications when any updates related to this issue become available.

L8WabyU86
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[timothys_tax]

macuser_22,

Thank you. I signed up. Hopefully the fix comes soon. The error is preventing me from filing electronically.

[Randjem]

Your fix is not correct. We tried that with their CPA yeaterday. When you do that, your federal return does not add that extra income. You have to file a 1099-R form and fill it out as much as you can in order for your federal return to add that extra income. This still does not allow you to e-file. So you paid for e-filing to get at the to their coding error that was supposed to be fixed by April 5th. On the April 5th, got an rmail from them after waiting 2 weeks telling me that i have to paper file! Yes, they did it! They basically fixed the issue by saying paper file, which the software itself was telling you afer you run the review of the federal return. Amazing, ha? I paid $290 to e-file and get their coding error fixed and I am still here with no solution! Last time I will be uaing TT!

[macuser_22]

That is not a "fix".   Reporting the excess 401(k) deferral as 2018 income only negates the need to amend 2018 next year after the actual 1099-R arrives.    The e-file issue has to do with the excess reported on the W-2.    Nothing that you can do will fix that since it is a TurboTax bug.   The 4/5 update changed this but did not fix the e-file reject.  There is a new update on 4/12 that is supposed to fix the e-file issue whether you report the excess not not.

https://ttlc.intuit.com/questions/4698409-excess-401-k-contribution-preventing-e-file

[Steve2]

Issue was supposedly resolved today; however, I’m still unable to efile online or on the iOS app.

[Randjem]

Steve, it worked for me this morning, did not use iOS app though. Finally after waiting all of that time to e-file, the work is done but TT will never see my $$$ again. How they manahed this issue is poor at the best. Good luck. Marko

[Steve2]

Thanks...still doesn’t work for me.  It’s not like this is their ONLY job.  I’ll see if H&R Block fares any better.