6% fee

Forum|Forum|4 months ago
March 7, 2026
7 replies
66 views

I'm 58 and converted 15000 to a roth last year, have AGI of 79000. Why am I being charged a 6% excess contribution fee on a 8000 roth contribution? If I enter the 8000 for my wife, there is no additional tax. This doesn't make any sense that the fee is only charged if I make the the roth contribution.

TurboTax Premier Online

MindyB

Level 13

It is likely that you are missing the basis of the nondeductible traditional IRA that was from prior years, since $15,000 is more than the allowable contribution in one year. Please note that if you are converting a Traditional IRA that you deducted in the past, there is going to be tax on this amount (but not the 6% penalty) since it was never taxed before. If the IRA was a nondeductible Traditional IRA, make sure you enter the amount you contributed to the Traditional IRA in the current year and prior year(s).

Go to Deductions & Credits
On the Your tax break screen, locate and select the Retirement and Investments section, then select Start or Revisit next to Traditional IRA and Roth IRA.
Check the box for traditional IRA.
Continue and enter the 2025 Traditional IRA contributions (pre-conversion)
Continue and enter the amount of nondeductible IRA contributions to your traditional IRA from 2024 or prior years on the screen Traditional IRAs where it asks for this information.

pony2105Author

Level 2

I didn't make a non-deductible IRA contribution the previous year. It still shows a 6% fee even if I back out the $15,000 converted to a Roth.

MindyB

Level 13

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

Sign into your online account.
Locate the Tax Tools on the left-hand side of the screen.
A drop-down will appear. Select Tools
On the pop-up screen, click on “Share my file with agent.”
This will generate a message that a diagnostic file gets sanitized and transmitted to us.
Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

Open your return.
Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
This will generate a message that a diagnostic copy will be created. Click on OK and the tax file will be sanitized and transmitted to us.
Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)