I have earned income from a part time job. I put 90% of that earned income, about $8000 into the company 401K and showed that when I entered my W2. Therefore, it showed that about $1000 in Block 1 and, $8000 in Blocks 3 and 5 and about $7300 in Block 12a with code D (ret. plan box checked.)
When I later imputed my ROTH IRA contribution of $5000 in Turbo Tax, it showed that I owed about $2000 in taxes after inputting my IRA contribution. Can you please help me understand what happened and how to fix this? My research shows that I can contribute to both a ROTH IRA and a 401K. What am I doing wrong in Turbo Tax? Thank you very much for your support.
