You can contribute no more than $6,500 ($7,500 if you're 50 or over) to all of your traditional and Roth IRAs. Any more than that is considered an excess contribution and will be taxed at 6% per year.
To steer clear of the 6% tax on excess contributions, file a withdrawal request. Contact your financial institution and request to withdraw the excess contribution, plus earnings, by the due date of the return (including extensions).
The earnings are included as taxable income for the year the excess contribution was made.
Your IRA contributions are reported on Form 5498, IRA Contributions Information. Your IRA trustee or issuer—not you—is required to file this form with the IRS, usually by May 31. You won't find this form in TurboTax, nor do you file it with your tax return.
To enter your 2023 IRA contributions (money you put into your IRA):
- Sign in to your TurboTax account.
- Open or continue to your return.
- In the search bar, type ira contributions and select the Jump to link in the search results.
- We'll take you to the Traditional IRA and Roth IRA screen, where you can start the IRA interview.
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