What is the maximum elective deferral to a 403(b)?

[guz1]

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).  

[Opus 17]

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@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).  

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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. 

[guz1]

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).

[Opus 17 · Accepted solution]

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@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).

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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. 

[AnnetteB6 · Accepted solution]

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.

@guz1 

[guz1]

@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:

• Self-employment tax from Schedule SE,
• Unreported Social Security and Medicare tax,
• Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts,

[KeshaH]

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".

@guz1 

[guz1]

@KeshaH 

Perfect. Thank you!