I don't get the same screens you showed. I'm using Turbotax for the web, maybe that's the difference.
Once I complete deductions I get:
You Have an Excess Roth Contribution
Roth IRAs offer some great benefits, but they have restrictions too.
Part or all of your contribution to your Roth IRA isn't allowed due to certain restrictions on Roth IRAs.
Based on the information you've entered so far, these situations apply to you:
* Your contribution is over the allowed limit of $7,000 ($8,000 if age 50 or older)
* Your modified adjusted gross income is too high
Because your contribution isn't permitted, it's considered an excess contribution of $13,300.
Then it tells me I have a penalty.
Later when I review my deductions it shows me a table:
Traditional IRA Contributions: $0 -- shouldn't this be $15000?
Roth IRA Contributions: $15000
Less Excess ROTH Contributions: -$15000 -- Reinforcing excess
I thought there is no excess when converting...stuck.
below is my full workflow. I feel out of options.
INCOME:
I enter 1099-R: Gross Distribution $15K, Taxable: $15K, "taxable amount not determined" is checked.
Screen then says: "Good news! you don't owe extra taxes...You may still need pay regular tax, but you avoided an extra 10-25%."
None of the next options apply to me (not simple or sep, etc.)
Did I move the money through a rollover or conversion? I check "I converted some or all of it to a Roth IRA"
Did I convert alk ($15K) to a ROTH IRA? "Yes, all of this money was converted to a Roth IRA"
No disaster.
"Yes, I made and tracked nondeductible contributions to my IRA"
Went to my 2024 12/31 statement and prior year form 8606 and entered basis "6500"
Value of IRA on 12/31: 189
Value of Roth on 12/31: 113,716
On the deductions side:
Check I have traditional and Roth.
Not repayment.
"Enter the total amount I put into a traditional IRA for 2024, even if you later transferred some or all of it to a Roth IRA" $15,000
Amount switched to Roth: $15,000
No excess contributions.
Yes, I made and tracked nondeductible contributions to my IRA.
Basis on12/31: $15000
Did I make a Roth contribution )not counting conversion): no
Did I have a Roth before? Yes.
Do you want us to track? No (for now)
Excess ROTH contributions? No
Value on 12/31 of Roth: 113,716.
ERROR! EXCESS ROTH!
