Question

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

Forum|Forum|6 years ago
April 5, 2020
1 reply
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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?

K

klehnhardt

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

O

onbelayAuthor

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.