W2 Box 12 Code BB

Forum|Forum|5 years ago
March 31, 2021
1 reply
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My W2 has an amount in box 12 - "Code BB - Contributions to 403B..." but on my final return, that amount is showing up on the IRA Information worksheet as a "Regular ROTH IRA contribution." Is this going to make my total contributions to Roth IRA over time incorrectly over-stated? I did not actually make a contribution to my ROTH IRA. Only my 403B through payroll deduction.

DianeW777

Level 15

This indicates specifically that is is Roth IRA contributions.

BB — Designated Roth contributions under a 403(b) plan.

Limitation on Roth Contributions:

Is there a limit on how much I may contribute to my designated Roth account?

Yes, the combined amount contributed to all designated Roth accounts and traditional, pre-tax accounts in any one year for any individual is limited (under IRC Section 402(g)). The limit is $19,500 in 2020 and 2021 ($19,000 in 2019), plus an additional $6,500 in 2020 and 2021 ($6,000 in 2015 – 2019) if you are age 50 or older at the end of the year. These limits may be increased in later years to reflect cost of living adjustments.

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kfsandrock

Level 2

Can someone tell me why TurboTax is flagging my return because I contributed too much to my Roth? I have BB coded in box 12a on my W-2 which is a Roth contribution under a 403(b) umbrella. As I understand the law, I can contribute $26,000 to my 403(b) because I am 52 years old. I've only contributed $8,947 into my Roth for 2020. It's telling me that I was only allowed to put $7,000 in my Roth and that I'm going to have to pay a 6% penalty. How do I get around this in the software because it is not correct?

macuser_22

Alumni - Champ

@kfsandrock wrote:

Can someone tell me why TurboTax is flagging my return because I contributed too much to my Roth? I have BB coded in box 12a on my W-2 which is a Roth contribution under a 403(b) umbrella. As I understand the law, I can contribute $26,000 to my 403(b) because I am 52 years old. I've only contributed $8,947 into my Roth for 2020. It's telling me that I was only allowed to put $7,000 in my Roth and that I'm going to have to pay a 6% penalty. How do I get around this in the software because it is not correct?

That is reported on your W-2 and nowhere else. It is NOT an IRA contribution. If you entered it in the IRA contribution interview - remove it. It is a 403(b) Designated Roth contribution - not an IRA contribution.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**