TurboTax says I have a penalty for contributing too much to my traditional IRA. It says the limit is $7,00, but Fidelity says the limit is over $20,000.0 0 I

It sounds like Fidelity thought it was talking about a 401(k) plan or maybe a SIMPLE IRA. 

An ordinary IRA has a limit of $7,000 (depending on your age).

You need to go back to Fidelity and find out why you were told this erroneous information.

Stop and look again.

AN "IRA" is not a TSP, nor a 401k, nor a 403b, nor a 457 retirement account......those other types are what Fidelity is talking about.

Any contributions you make thru your employer, and are showing in box 12 of your W-2....those are only entered when you put in the W-2 form....and NOT in the IRA contribution section.

Go back to the IRA contribution section and take those $$ out...unless you truly did make a contribution to an actual "IRA" outside of your employer...and then the 7000 limit may well apply to you.....but again