@guz1 wrote:
The W-2 is coded correctly. W-2 Box 12 E-Elective deferrals to 403(b). How can I find out if TurboTax generated IRS form 5330 since the error message says, "The maximum salary deferral retirement plans for 2024 is $33,500. Read IRS Publication 560 Retirement Plans for small businesses."
No acknowledgment of the deferral into a 403(b) at all even though the W-2 Box 12 has the correct code E-Elective deferrals to 403(b).
As @dmertz explained, "Turbotax does not support form 5330." That means it does not contain the form and can't prepare it even if it was needed. If you did need form 5330 with your tax return, you would need to use different software or see a tax preparer. If you need more proof than that, print your return before you file it and verify the form is not in your return.
Thank you for sharing your token number. After taking a closer look, there were no errors generated related to the 403b elective deferrals that I could see.
If you are still experiencing a problem, please share further details about where you are in the process when the error appears. Otherwise, it appears it may have been corrected with a program update.
For 2024, the maximum contribution for a 403(b) plan is $23,000 for an employee under age 50. For those aged 50 or over, there is a maximum catch-up contribution of $7,500.
The IRS also says:
If permitted by the 403(b) plan, an employee who has at least 15 years of service with the same eligible 403(b) employer - a public school system, hospital, home health service agency, health and welfare service agency, church, or convention or association of churches (or associated organization), has a 403(b) elective deferral limit that is increased by the lesser of:
Please read this IRS document for more information.
That does not take into account the 15-year of service catch-up contribution of $3,000.
TurboTax is not recognizing this allowable contribution to a 403(b).
TurboTax says that I have an overpayment of $3,000. The program is not correct.
If you'd like, we can look at your return and see exactly what you see to help come to a resolution. The return will be scrubbed and won't include any of your personal details.
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Please reply to this message with your token so that we can further assist you. Let us know all the states, if any, are included on the return.
Hi, I am using TurboTax Online. After I log in, I do not see Tax Tools on the left hand panel. I've tried using three different browsers with the same result. I see "Live Tax Advice" on the top right toolbar. I searched Tax Tools and nothing came up. I would love to resolve this. thank you for your help.
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Click on Review/Edit or Pick up where I left off on any of the tax return topics to open up your return. Then you'll see Tax Tools on the left hand panel.
Thank you for that. The token number is 1274454
The issue is my wife's W-2 Box 12 E-Elective deferrals to 403(b) is $33,500
I get the error message that says "The maximum salary deferral retirement plans for 2024 is $30,500." It then points me "Read IRS Publications 560 Retirement Plans for small business". Apparently TurboTax also generated Form 5330 for the excess contribution of $3,000.
The correct IRS Publication is 571 Tax-Sheltered Annuity Plans (403(b) Plans For Employees of Public
Schools and Certain Tax-Exempt Organizations. 4. Limit on Elective Deferrals
The general limit for 2024 is $23,000
The 15-years of service catch up is $3,000
The 50 or over make-up contribution for 2024 is $7,500
Total allowable 403(b) for 50+ with 15 years of service is $33,500.
TurboTax is not picking up that the deferral is into a 403(b) nor the 15-years of service catch up of $3,000.
Thanks again.
Thank you for providing your token number. We will take a closer look at this issue and get back with you.
@guz1 wrote:
Is TurboTax going to address this issue?
Practically, no. Turbotax does not, and has never, recognized the extra $3000 catch-up for a 403b. However, this is a non-issue. Just ignore the warning and file your tax return. It will not cause any change in your tax or mistake in your return. (That is to say, I don't believe turbotax can add the $3000 back to your income automatically. It may warn you to do so, you can ignore the warning.)
Thanks Opus 17.
I was concerned that TurboTax automatically generated IRS Form 5330 for the excess contribution of $3,000.
TurboTax does not support Form 5330.
With regard to your individual tax return, Form 5330 would only apply if you made an uncorrected excess contribution to a self-employed retirement plan.
That's the problem. The error message that I get says "The maximum salary deferral retirement plans for 2024 is $30,500." It then points me to "Read IRS Publications 560 Retirement Plans for small business". TurboTax categorizes the deferral as a deferral into Retirement Plans into a small business and not into a 403(b).
@guz1 wrote:
That's the problem. The error message that I get says "The maximum salary deferral retirement plans for 2024 is $30,500." It then points me to "Read IRS Publications 560 Retirement Plans for small business". TurboTax categorizes the deferral as a deferral into Retirement Plans into a small business and not into a 403(b).
What is the code in box 12 of your W-2. It should be E or BB.
If the "help text" refers to the wrong topic, that's an issue that maybe can be fixed. However, if your contributions are actually to a workplace 403b, and are coded correctly on your W-2, then you can ignore the overcontribution message and associated advice, because whether the advice is right or wrong, you don't actually have an over contribution.
The W-2 is coded correctly. W-2 Box 12 E-Elective deferrals to 403(b). How can I find out if TurboTax generated IRS form 5330 since the error message says, "The maximum salary deferral retirement plans for 2024 is $33,500. Read IRS Publication 560 Retirement Plans for small businesses."
No acknowledgment of the deferral into a 403(b) at all even though the W-2 Box 12 has the correct code E-Elective deferrals to 403(b).
@guz1 wrote:
The W-2 is coded correctly. W-2 Box 12 E-Elective deferrals to 403(b). How can I find out if TurboTax generated IRS form 5330 since the error message says, "The maximum salary deferral retirement plans for 2024 is $33,500. Read IRS Publication 560 Retirement Plans for small businesses."
No acknowledgment of the deferral into a 403(b) at all even though the W-2 Box 12 has the correct code E-Elective deferrals to 403(b).
As @dmertz explained, "Turbotax does not support form 5330." That means it does not contain the form and can't prepare it even if it was needed. If you did need form 5330 with your tax return, you would need to use different software or see a tax preparer. If you need more proof than that, print your return before you file it and verify the form is not in your return.
Thank you for sharing your token number. After taking a closer look, there were no errors generated related to the 403b elective deferrals that I could see.
If you are still experiencing a problem, please share further details about where you are in the process when the error appears. Otherwise, it appears it may have been corrected with a program update.
@AnnetteB6
Under Tax Tools > Tools > View Tax Summary I have a "Other Tax" line of $1,466. In researching what the "Other Tax" line is, I found the answer in the community below. Of particular interest is the third bullet point. I am afraid TurboTax is calculating a tax on an excessive deferral into the 403b. Can you please take a look?
The "Other taxes" line includes a range of taxes other than income tax, all which are collected via Form 1040. These include:
The amount on the "Other Taxes" line on your return is Additional Medicare tax, which is unrelated to your 403(b) contribution. You can see this by previewing your 1040 and scrolling down to Schedule 2. The $1,400 will be on line 11, Additional Medicare Tax. To preview your 1040, follow the same steps you used to view the summary. You should then see an option on the left panel that says "Preview My 1040".