TaxBway

On proconnect tax software you have this under Critical. The taxpayer's 408(p) contributions exceed the $19,500 limit. The excess amount may need to be added to wages. Refer to Form 1040 instructions for more information. The taxpayer's excess 408(p) contributions can be entered in "Excess salary deferrals" US - Ref #7861

See page 26 link below if you can open

Section 117(h) of the SECURE 2.0 Act provides that the amendments made by
section 117 of the SECURE 2.0 Act apply for taxable years beginning after December
31, 2023. AE-2 additional deferral allowed in 2024. Your code is written wrong in the software.

. E-7: An employer election to apply the increased limits for a calendar year
must be made before the employer provides the annual notice to each employee of the
employee’s opportunity to enter into a salary reduction agreement or to modify a prior
agreement for that calendar year, as provided in Q&A G-1 of Notice 98-4.

not98-4.pdf

 

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