IRA contribution limit is incorrect in desktop Turbotax Home & Business 2024

[Dtchgirl]

The 2024 max IRA contribution by a taxpayer over age 50 is $8,000. ($7,000 regular contribution plus $1,000 catch-up contribution). I have found this stated in numerous online sources, including the IRS website. Turbotax is giving an error message and says we owe a penalty for every year we don't correct the "excess contribution" over $7,500. This bug in the Turbotax program needs to be fixed/updated for 2024. Below is paste from IRS website. The programmer did not update info from 2023 to 2024.

I spent a ridiculous amount of time on the Turbotax website trying to find a way to report their error but came up empty handed.

For 2024, the total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than:

• $7,000 ($8,000 if you're age 50 or older), or
• If less, your taxable compensation for the year

For 2023, the total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than:

• $6,500 ($7,500 if you're age 50 or older), or

[Loretta P]

Hello @Dtchgirl, 

TurboTax Home & Business 2024 was just released.  This would be the bare bones version as many of the forms are not ready yet from the IRS and the tax season hasn't really begun.  E-filing returns will not start usually until later in January 2025.  As the IRS and various states finalize their forms, our programmers will finalize forms within the program and release updates.  

If you are trying to do tax planning you may want to look at the Tax Calculators

[evelynm]

Regarding your 2023 question - If you or your spouse were covered by a workplace retirement plan in 2023 you may not be eligible for a deduction depending on your AGI ira-deduction-limits 

Here is a link with further details:   irs.gov/retirement-plans/2023-ira-deduction-limits