Question

SOLVED 401k and Roth contribution penalty while preparing taxes

Forum|Forum|4 years ago
March 9, 2022
1 reply
0 views

While filling out our taxes it is showing a penalty for over contribution to my company sponsored 401k and my Roth. I did not exceed the amounts allowed but it says we exceeded the AGI minimum limit by about 3k. I spoke with the plan administrator and he not being a tax expert says there is something wrong and I shouldn't be having a penalty. We are both over 50 and playing the catch up end of maxing out our contributions but be careful not to go over. Just for reference the amount of the penalty is 2/3's of the 401k and the total Roth amounts.

Went through and started over and the same penalty came up.

Any insight would be appreciated. Thank you

TurboTax Deluxe Online

D

DanaB27

Please be aware your Roth IRA contribution may be limited based on your filing status and income. If your Modified Adjusted Gross Income is over $198,000 then your Roth contribution amount will be reduced. Please see 2021 - Amount of Roth IRA Contributions You Can Make for 2021.

The limit on employee elective deferrals for a 401k is:

$19,500 in 2021 plus catch-up contributions of $6,500 since you are over 50.

To verify, you only entered the Roth IRA contribution during the IRA contribution interview? And for the 401k you only entered your W-2 since this information is in box 12?