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

Forum|Forum|1 year ago
February 18, 2025
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15-year of service catch-up contribution to a 403(b)

Best answer by Opus 17

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.

MinhT1

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:

$3,000,
$15,000, reduced by the amount of additional elective deferrals made in prior years because of this rule, or
$5,000 times the number of the employee’s years of service for the organization, minus the total elective deferrals made for earlier years.

Please read this IRS document for more information.

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guz1Author

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).