I have two W-2s with Roth contributions. The two contributions sum to exactly $30,500. The amounts are correctly reported in box 12, code AA of the two W-2s.
But TurboTax says that I have over-contributed to Roth 401k, saying I contributed $30,501.
Maybe the issue is rounding, but I have to sort it out. I cannot ask my employer to correct the contributions, since there is nothing wrong on their end. I cannot fill out the IRS forms to report it, since there is no error. The error is only with TurboTax.
Advice appreciated.
It is possible, especially if you uploaded the W-2 forms, that they weren't processed properly by TurboTax. I suggest you delete the W-2 entries and re-enter them.
Yes, TurboTax creates many such errors due to improper handling of rounding. I suspect that both W-2s show contribution amounts of $xxxx.50, resulting in both getting rounded up. You can work around the problem by lowering one amount to $xxxx.49. Otherwise, if TurboTax does not include the "extra" $1 as income on your tax return, you can ignore the message.
I re-entered the W-2 with the same values. That was not the problem, and the error did not get resolved. As I suggested in my original posting, TurboTax handles rounding incorrectly, rounding the Roth contributions on multiple W-2s up when it checks the total annual Roth contributions, resulting in it thinking I have over contributed. This is sloppy accounting and sloppy coding.