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fl197-bellsouth-
February 21, 2024
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TurboTax calculated a Penalty for over-contributing to a 401k Roth due to income > specified amount. Fidelity says because it was done in a work 401k, TurboTax is wrong.

  • February 21, 2024
  • 2 replies
  • 0 views
Fidelity Investments says TurboTax should not have calculated a penalty.  Did I input something incorrectly?
Best answer by DanaB27

It seems like you entered your work retirement 401(k) account contributions from your W-2 into the IRA contribution section under Deductions and Credits. A work retirement account is not an IRA. Please follow these steps to remove the entry:

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “IRA contributions” 
  3. Click on “Jump to IRA contributions"
  4. Deselect the IRA and click "continue"
  5. Confirm that you want to delete the entry.

 

2 replies

D
DanaB27Answer
February 21, 2024

It seems like you entered your work retirement 401(k) account contributions from your W-2 into the IRA contribution section under Deductions and Credits. A work retirement account is not an IRA. Please follow these steps to remove the entry:

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “IRA contributions” 
  3. Click on “Jump to IRA contributions"
  4. Deselect the IRA and click "continue"
  5. Confirm that you want to delete the entry.

 

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VolvoGirl
VolvoGirl
Employee
February 21, 2024

You only enter a 401K from your W2, nowhere else.  A 401K is not the same as an IRA.  

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