It might be that you have an excess contribution, did you get a warning during the IRA contribution interview? If you have an excess contribution you will have to pay a penalty and this will increase your taxes.
For 2022 the total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than:
Please be aware, your Roth IRA contribution may be limited based on your filing status and income. Please see 2022 - Amount of Roth IRA Contributions You Can Make for 2022 for details.
Excess contributions are taxed at 6% per year for each year the excess amounts remain in the IRA. The tax can't be more than 6% of the combined value of all your IRAs as of the end of the tax year.
To avoid the 6% tax on excess contributions, you must withdraw (request the withdrawal of excess contributions):
- the excess contributions from your IRA by the due date of your individual income tax return (including extensions); and
- any income earned on the excess contribution.
Please see What happens if I made an excess Roth IRA contribution for additional information.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
