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February 13, 2025
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2024 401k Error

  • February 13, 2025
  • 1 reply
  • 0 views

I'm over 60, for 2024 my total contribution limit is $30,500.00.  $23,000 +$7,500 according to the IRS, TT is flagging my $8,000 over my limit.  I contributed $30,500. I spoke to the "professionals" for over an hour and the basically said I'm wrong.  

 

What can I do?

    Best answer by dmertz

    Make sure that you have not entered this as an IRA contribution.  A 401(k) is not an IRA.  Enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.  If you have entered any of the $30,500 as an IRA contribution, go back and remove that.

    1 reply

    dmertzAnswer
    Employee
    February 13, 2025

    Make sure that you have not entered this as an IRA contribution.  A 401(k) is not an IRA.  Enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.  If you have entered any of the $30,500 as an IRA contribution, go back and remove that.

    February 14, 2025

    Well, that took care of the penalty but my taxable income isn't showing the corresponding 30,500 reduction the 401K should have given me.

    AmyC
    Employee
    February 21, 2025

    The 401K is on your w2 and should have reduced your box 1 amount. Are you filling out business taxes? If so, what type of entity?

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