Incorrect IRA Contribution

[carlislh]

Hi there,

I contribute to a simple IRA and noticed that the my personal contribution numbers on my W2 did not match my statements from my Invesco account. The W2 amount was over the $6000 limit, but the actual amount was not.

After speaking with my company's finance team, it was determined the company had under-contributed to the IRA account when they were sending the money (so actual contributions didn't match my payroll statements and thus W2).

They are retroactively correcting this, but from a tax perspective, when I enter my total contributions to the IRA in Turbotax, is it correct to assume that I should be putting the actual amount that was contributed to my IRA rather than the incorrect number that is on my W2?

Let me know if anyone has advice here as live IRS support hasn't been able to answer my question.

Thanks so much!

[macuser_22]

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@carlislh wrote:

Hi there,

I contribute to a simple IRA and noticed that the my personal contribution numbers on my W2 did not match my statements from my Invesco account. The W2 amount was over the $6000 limit, but the actual amount was not.

After speaking with my company's finance team, it was determined the company had under-contributed to the IRA account when they were sending the money (so actual contributions didn't match my payroll statements and thus W2).

They are retroactively correcting this, but from a tax perspective, when I enter my total contributions to the IRA in Turbotax, is it correct to assume that I should be putting the actual amount that was contributed to my IRA rather than the incorrect number that is on my W2?

Let me know if anyone has advice here as live IRS support hasn't been able to answer my question.

Thanks so much!

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A SEP contribution is not a Traditional or Roth IRA and does not get entered in the IRA contribution interview.   The W-2 box 12 is the ONLY place that it is reputed.

[carlislh]

@macuser_22 I see! Thank you! Do you know if it is thus still subject to the $6000 limit?

[macuser_22]

They are not.

Contributions an employer can make to an employee's SEP-IRA cannot exceed the lesser of: 25% of the employee's compensation, or. $57,000 for 2020 and $58,000 for 2021 ($56,000 for 2019)

[carlislh]

Great - thank you so much!!