TurboTax Roth 401k contribution software error

[Gregor]

I have two W-2s with Roth contributions.  The two contributions sum to exactly $30,500.  The amounts are correctly reported in box 12, code AA of the two W-2s.

But TurboTax says that I have over-contributed to Roth 401k, saying I contributed $30,501. 

Maybe the issue is rounding, but I have to sort it out.  I cannot ask my employer to correct the contributions, since there is nothing wrong on their end.  I cannot fill out the IRS forms to report it, since there is no error.  The error is only with TurboTax.

Advice appreciated.

[ThomasM125]

It is possible, especially if you uploaded the W-2 forms, that they weren't processed properly by TurboTax. I suggest you delete the W-2 entries and re-enter them.

[dmertz]

Yes, TurboTax creates many such errors due to improper handling of rounding.  I suspect that both W-2s show contribution amounts of $xxxx.50, resulting in both getting rounded up.  You can work around the problem by lowering one amount to $xxxx.49.  Otherwise, if TurboTax does not include the "extra" $1 as income on your tax return, you can ignore the message.

[GregY]

I re-entered the W-2 with the same values.  That was not the problem, and the error did not get resolved.  As I suggested in my original posting, TurboTax handles rounding incorrectly, rounding the Roth contributions on multiple W-2s up when it checks the total annual Roth contributions, resulting in it thinking I have over contributed.  This is sloppy accounting and sloppy coding.

[GregY]

Thanks for your thoughtful response.  Yes - I came to the same conclusion that TurboTax handles rounding incorrectly.  It rounds individual numbers that need to be ultimately added together, setting the stage for incorrect totals.  Sloppy and disappointing.