ROTH IRA vs ROTH 401(k)

[dlh6213]

I have a ROTH 401(k), but TurboTax is treating it like it's a ROTH IRA and saying I've over contributed; how do I correct this?

[DanaB27 · Accepted solution]

Please do not enter the Roth 401(k) contribution in the IRA contribution interview. All you need to do is enter your W-2 which has the Roth 401(k) contribution listed in box 12.

If this doesn’t answer your question, then please provide more details and we will be happy to help you.

[dlh6213]

I don't think I did, but I'll review it and let you know. Thanks for the response!

[DanaB27]

Please be aware, the amount an employee may designate as a Roth 401(k) contribution is limited to the maximum amount of elective deferrals for the year ($20,500 in 2022, $27,000 in 2022 if age 50 or over) less the total amount of the employee's elective deferrals not designated as Roth 401(k) contributions. Please see Designated Roth Account for details.

Please be aware, if you do not take out the excess amount by April 15th, then you are taxed twice on the excess deferral left in the plan.  This happens once when you contribute it and again when you receive it as a distribution. You can't include the excess amount in the cost of the contract even though you included it in your income.

@dlh6213