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Filing jointly where do I enter 401k catch up amounts?

Forum|Forum|7 years ago
June 5, 2019
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I am 58 and filing jointly, wife is under 50. I contributed a total of $44,137 into traditional IRA's ($20,137 into 457b & $24,000 into 401k). TT says that we are $35,637 over my limit, that amount is a catch up but where do I enter it? They say I will have a 6% penalty if I do not withdraw the money, I believe that with the catchup I can put $18,000 into each with no penalty, I don't understand TT logic?

TurboTax Premier Windows

Best answer by SteamTrain

Slow down here:

1)  a 401k and  457b contributions are NOT IRA contributions.  IRAs are entirely separate retirement contributions done Outside of your work accounts.

2)  If you made contributions to those (401k and 457b) thru your payroll withholding, and those contributions are shown in box 12 of your W-2 forms  (code D for the 401k and code G for the 457b) then you already entered those contributions with your W-2 form.  There is nowhere else that they are supposed to be entered in the software.  (exceptions for self-directed 401k's for self-employed people).

3)  You appear to have double-entered your 401k and 457b contributions in the IRA Deduction area.......as already noted...those were not IRA's.  Go back there and take those IRA contributions out on the Deductions&Credits page.

4) I see a $3000 Roth IRA too in your picture...take that out too unless it truly was a ROTH IRA contribution you made outside of work. Even if an actual ROTH IRA, it may not be allowed depending on your total family income.

SteamTrainAnswer

Employee

Slow down here:

1)  a 401k and  457b contributions are NOT IRA contributions.  IRAs are entirely separate retirement contributions done Outside of your work accounts.

2)  If you made contributions to those (401k and 457b) thru your payroll withholding, and those contributions are shown in box 12 of your W-2 forms  (code D for the 401k and code G for the 457b) then you already entered those contributions with your W-2 form.  There is nowhere else that they are supposed to be entered in the software.  (exceptions for self-directed 401k's for self-employed people).

3)  You appear to have double-entered your 401k and 457b contributions in the IRA Deduction area.......as already noted...those were not IRA's.  Go back there and take those IRA contributions out on the Deductions&Credits page.

4) I see a $3000 Roth IRA too in your picture...take that out too unless it truly was a ROTH IRA contribution you made outside of work. Even if an actual ROTH IRA, it may not be allowed depending on your total family income.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

T

turnthecorner

Can you answer this aspect of the question: "where do I enter an after-tax 2019 401(k) catch-up contribution in Turbo-tax? Since most employee and employer 401(k) contributions are supplied to Turbo-tax via the W-2, Turbo-tax does not appear to have many (any?) fields expressly identifying deductions for a 401(k), let alone a catch-up contribution. Many thanks.

D

dmertz

Employee

After-tax 401(k) contributions are reported nowhere on your individual tax return (except in the case where those contributions qualify you for a higher Retirement Savings Contributions Credit than you might already be eligible to receive, but it would be extremely unlikely that anyone making after-tax 401(k) contributions would qualify for this credit at all).

You employer includes catch-up 401(k) elective deferrals in the amount reported with code D in box 12 of your W-2. Enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.

B

Btbradford

My employer doesn’t have a way to make a 401k catchup deposit so it isn’t included on my W2. How do I enter this in TurboTax

DoninGA

Employee

@Btbradford wrote:

My employer doesn’t have a way to make a 401k catchup deposit so it isn’t included on my W2. How do I enter this in TurboTax

Please explain.

Tax deferred contributions to an employer provided 401(k) plan are required by law to be reported on the employee's W-2. If you are making contributions and they are not reflected on the W-2 then you have to get a corrected W-2 from your employer.