Stuck in a loop: after clicking "Transmit Returns Now" TurboTax says "We Need to Make One More Check" (12b Elective deferrals >$18500), then returns to transmit screen

[Scott6]

In TurboTax Deluxe: After "We Need to Make One More Check" it says "Check This Entry" and "Forms W-2 & W-2G Summary: Elective deferrals - SP $[xxxxx]. is more than the allowed $18500 for a 401k plan. Please check your entries on your W2 for 401k plans." (The entry is the correct amount, we accidentally over-contributed and received a 1099-R distribution for the difference, all of which is entered into TurboTax.) After clicking "Continue" (twice), TurboTax returns to the "Transmit Your Returns" screen with the "Transmit Returns Now" button.

[Rachel_W · Accepted solution]

I believe this "loop" is an e-filing issue within TurboTax relating to your excess 401(k) deferral.  An update to fix the issue is expected to be released around 4/5/2019.  You can check out this TurboTax FAQ for more information: Excess 401(k) Contribution Preventing E-filing.

Be sure to sign up for updates to be alerted as soon as there is a solution.  If you do not want to wait for an update, you have the option to paper file your tax returns as this is only an e-filing issue.

If you haven't done so already, use the steps in this answer to include your excess contribution as wages on your 2018 Tax Return:  What to do if you have an excess contribution to a 401(k).

[Scott6]

Thank you for your response! I've reported the excess contribution (received a 1099-R from my plan administrator) and will update TurboTax when the update is released.

[vladr]

It's 4/8 and an update is still not available (update R24 [4/3] is still the latest one).
Any updates on the update?

[Scott6]

The first link in the first response has been updated to state that we have to file by mail if we face this issue, unfortunately. Looks like they weren't able to fix the bug.