To verify, you made a traditional IRA contribution for 2022 and converted it in 2022.
Please be aware you need taxable compensation (wages, salary, self-employment income) to make IRA contributions. If you are only income is retirement distributions then you cannot make IRA contributions and will have an excess contribution.
If you are allowed to make IRA contributions and you are not getting the "Choose Not to Deduct IRA Contributions" screen, then this means you or your spouse had a retirement plan at work and your income is over the income limit and therefore the contribution to the traditional IRA is automatically nondeductible. You want the contribution to be nondeductible.
Excess contributions are taxed at 6% per year for each year the excess amounts remain in the IRA. To avoid the 6% tax on excess contributions, you must withdraw:
- the excess contributions from your IRA by the due date of your individual income tax return (including extensions); and
- any income earned on the excess contribution.
Please see IRS IRA Contribution Limits for additional information.
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