turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

onbelay
New Member

Why doesn't TurboTax understand 403(b) contribution limit with additional contribution for 15 years of service?

The normal 403(b) plan contribution limit for 2019 is $19,000, and TurboTax knows this.

The age 50 catch-up additional contribution is $6,000, and TurboTax also knows this as well.

The 15 years of service additional contribution is $3,000, but TurboTax doesn't seem to recognize this.

My wife, who is under 50 but meets the 15 years of service criteria, contributed $22,000 to her 403(b) in 2019 ($19,000 regular plus $3,000 for 15 years of service). TurboTax displays a screen that says "Let's Check Xxxx's Retirement Contributions" and has a link with steps to correct the overpayment, which is not actually and overpayment at all.

I can bypass this issue and continue for now, but will this impact my ability to file my taxes with TurboTax when it does all of its checking prior to filing?

 

 

5 Replies
KurtL1
Expert Alumni

Why doesn't TurboTax understand 403(b) contribution limit with additional contribution for 15 years of service?

You are able to override the error but you will not be able to E-file your return(s). You will need to print your return(s) and mail in to the tax authority.

 

Overriding the error this will cancel the TurboTax Accuracy Guarantee on your return(s).

 

Edited 04/06/20

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
onbelay
New Member

Why doesn't TurboTax understand 403(b) contribution limit with additional contribution for 15 years of service?

Thanks, Kurt.

With the latest program update, after acknowledging the "error" and moving on, I was able to complete and file my federal and NY state returns online with the correct 403(b) contribution.

Although it is probably not widely used, the 15-year additional contribution rule is not a recent change, so I hope that next year's edition of TurboTax will properly handle it.

joecharyl
New Member

Why doesn't TurboTax understand 403(b) contribution limit with additional contribution for 15 years of service?

I am using the online version and I cannot override this error...help!

Why doesn't TurboTax understand 403(b) contribution limit with additional contribution for 15 years of service?

Obviously, Turbo Tax did not correct that issue as I'm facing the same scenario with the 2021 version.   I don't want my lifetime service-based catch up contribution ($3,000 per year until the $15,000 limit is reached) to appear as an error.  The only prompt I receive from TT is that I need to correct the extra contribution (which I am allowed).  It would be so easy for Turbo Tax to ask a few questions to determine if the person participates in a program that allows this catch up option.   TT even has articles on this allowance yet doesn't include it in their tax software.  Not sure how to proceed.

ErnieS0
Expert Alumni

Why doesn't TurboTax understand 403(b) contribution limit with additional contribution for 15 years of service?

Try the solution suggested by @dmertz, a Level 15 contributor who says to enter to correct amount (regular + catch-up) in W-2 Box 12. If you are unable to e-file, mail in your tax return.


Here's the post: How can I correctly enter catch-up contributions to my 403(b) beyond the $19,000 limit for 2019 with...

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing

Related Content

Manage cookies