W2 Box 12 Code BB

[TomCN]

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]

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.

[kfsandrock]

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]

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@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?

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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.

[kfsandrock]

I entered it when I was reporting the information from my W-2.  I did not enter it as part of an IRA contribution.

[kfsandrock]

Oooh, I DID enter it for the IRA interview.  I took it off.  I understand now.  That IRA interview question is for a separate Roth that I may have opened myself outside of work.  Thank you for your help.

[mo241]

what does this mean? as soon as i enter it as BB it flags it as a roth - am i missing something? signed last hour desperate (haha)

[macuser_22]

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@mo241 wrote:

what does this mean? as soon as i enter it as BB it flags it as a roth - am i missing something? signed last hour desperate (haha)

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How does it "flag it"?

Code BB is a 401(k) Roth that has nothing to do with a Roth IRA.     It is entered on your W-2 and nowhere else.

[BillM223]

"Code BB—Designated Roth contributions under a section 403(b) plan. Use this code to report designated Roth contributions under a section 403(b) plan. Do not use this code to report elective deferrals under code E." See the W-2 Instructions.

Code BB means that your employer believes that this amount represents contributions to a Roth 403(b) plan. If you think that that is not correct, then you need to file an extension, pay whatever tax is due at IRS Payments, and talk to your employer tomorrow.