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How much can I contribute to a ROTH IRA? I am over 50, contribute to a traditional 401K at work (1,505.36) and my employer matches part (1,204.27)?
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June 1, 2019
11:39 AM
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Retirement tax questions
UPDATED FOR TAX YEAR 2019
You can contribute up to $7,000 each year (for each spouse, if married), if you're at least 50 years old, to a Roth IRA ($6,000 if you're under 50).
You do not need to include contributions to a Roth in your return because there is no deduction benefit for contributing
While Roth contributions are not reported on your tax return, it is a good idea to enter them the in the IRA contribution section anyway because TurboTax will:
- track the basis of your contributions for you year-to-year. [This becomes important when you start making withdrawals--to track how much of the distribution is taxable.]
- alert you if your MAGI exceeds the Roth contribution limit and are subject to a penalty.
- alert you if you have insufficient earned compensation to contribute.
To enter contributions to a Roth IRA in TurboTax, please follow these steps:
- Click on Federal > Deductions & Credits [In TT Self-Employed: Personal > Deductions & Credits > I'll choose what I work on].
- Scroll down to the Retirement and Investments section and click on the Start/Revisit box next to Traditional and Roth IRA Contributions.
- On the Traditional IRA and Roth IRA screen, mark the box for Roth IRA and click Continue.
- Click the appropriate box on Is This a Repayment of a Retirement Distribution?
- On the Enter Your Roth IRA Contributions screen, enter the amount of your contribution.
- Continue through the screens, entering the requested information.
- On the Enter Your Roth IRA Contributions screen, enter the amount of your contribution and click Continue.
[Edited | 4/15/2020 | 1:55pm PDT]
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June 1, 2019
11:39 AM