Deductions & credits
@pony2105 Thank you for providing your token. I have taken a look at your return. The 6% tax is being contributed because line 18 on form 5329 is filled in with $8,000. Line 18 says: Enter your excess contributions from line 24 of your 2024 Form 5329
Is that correct? If so, the 6% applies.
If not, as I suspect is the case, you'll need to remove the excess contributions as of 12/31/24. In Desktop, go to Forms in the top right, Form 5329-T, and enter zero into line 18.
If you are using TurboTax Online, you will need to go through the interview to update this. The $8,000 may have gotten stuck in the background if you don't see it, so I'd suggest the following:
- Go to Traditional and Roth IRA Contributions
- Continue through the interview and you'll see a screen that says Roth IRAs, Did you contribute more to a Roth IRA than was allowed in 2024 or any previous year? If it says no, switch it to yes, and enter $1, and then remove it. That might cause a reset.
- If it already said yes, continue to see the value amount and remove it. You can backtrack to then say no.
