What shall I do when Turbo tax only sees my W2 earned income and tells me that my ROTH IRA contribution was too high (when instead I have self-reported income + W2)?

astella80 · ‎April 12, 2020

KrisD15 · ‎April 12, 2020

What do you mean by self-reported income?

If you have self-employment income, enter that.

Unearned income, such as interest, does not count for a contribution.

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macuser_22 · ‎April 12, 2020

The most you can contribute to all of your traditional and Roth IRAs is the smaller of:

For 2019, $6,000, or $7,000 if you’re age 50 or older by the end of the year; or
your taxable compensation for the year.

(Taxable compensation is generally wages that you worked for - W-2 or net self-employed income minus the deducible part of the SE tax, but can include commissions, certain alimony and separate maintenance, and nontaxable combat pay ).

See IRS Pub 590A "What is compensation" for details:
https://www.irs.gov/publications/p590a#en_US_2018_publink1000230355

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

What shall I do when Turbo tax only sees my W2 earned income and tells me that my ROTH IRA contribution was too high (when instead I have self-reported income + W2)?

Retirement tax questions

Retirement tax questions