Question

Why would my 2022 employee payroll Roth 401K contribution ($7142) be limited to $6000?

Forum|Forum|2 years ago
March 11, 2024
2 replies
0 views

I started working August 14, 2022. It appears that Turbotax is handling this as a personal contribution instead of a retirement plan contribution.

TurboTax Online

DoninGA

Employee

If this is an employer provided Roth 401(k) account then your contribution will be on your W-2 in box 12. They are not entered anywhere else on a tax return.

R

RFR7063Author

DoninGA - It was reported on the W-2 Box 12 and entered that way in Turbotax, but I received the following message from Turbotax:

Your Roth Contribution Was Too High

Roth IRAs offer some great benefits, but there is a maximum contribution of $6000 ($7000 if age 50 or older). You contributed $7142, resulting in an excess contribution of $1142. Learn more.

You Currently Have a Penalty

Because you make an excess contribution of $1142 to your Roth IRA, you will owe a 6% penalty ($68) each year that excess money remains in the IRA.

But don't worry. You can remove this penalty by taking action before April 18, 2023 (or October 16, 2023, if you're filing an extension). What can I do?

Enter any contribution that you withdrew before April 18, 2023 (or October 16, 2023, if you're filing an extension).

Note: You must pay the penalty every year until the situation is fixed.

Is it possible that IRA information was input twice?

RFR7063