I could not reproduce this error. TurboTax correctly subtracted the Roth conversion from the AGI to determine MAGI and I was able to contribute to a Roth based on the MAGI.
Was the conversion reported to you on Form 1099-R as a withdrawal from your IRA? If so, make sure it is reported this way:
- Go to Federal > Wages & Income > Retirement Plans & Social Security > IRA, 401(k), Pension Plan Withdrawals (1099-R) and click Start / Revisit.
- Add your 1099-R with all the information exactly as it is reported to you.
- Confirm whether or not the IRA/SEP/Simple box is checked.
- After a few more screens, Tell us if you moved the money through a rollover or conversion select I converted some or all of it to a Roth IRA and confirm you converted the entire amount.
At that point, your ability to contribute to a Roth IRA should not take this income into consideration:
- In the Deductions & Credits section of your Federal return, scroll down to Retirement and Investments. Click Show More and click Revisit/Start next to Traditional and Roth IRA Contributions.
- Select Roth IRA
- Answer Is this a Repayment of a Retirement Distribution
- Enter your Roth contributions for the year. This does not include the amount you converted from a traditional IRA, only the additional amount you contributed in 2021, up to $6,000 or $7,000 if you are over the age of 50.
- Continue through the questions. If you over-contributed you will come to a screen that says Your Roth Contribution Was Too High. If you do not see this screen, but instead Your IRA Deduction Summary, then you should be okay.
