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Retirement tax questions
Is this a ROTH IRA?
If your balance due increased/refund decreased when you entered your Roth IRA contributions, that probably indicates that you have exceeded the contribution limit for Roth IRAs based on your income and the contribution is being taxed as an excess contribution.
Go back through the section of your return where you entered the Roth contributions and be sure to go through each screen. TurboTax will indicate if you have an excess contribution that needs to be removed.
For Traditional IRAs keep in mind that your deduction may be reduced if you or your spouse are covered under retirement plans at work.
- Retirement plan at work: Your deduction may be limited if you (or your spouse, if you are married) are covered by a retirement plan at work and your income exceeds certain levels.
- No retirement plan at work: Your deduction is allowed in full if you (and your spouse, if you are married) aren’t covered by a retirement plan at work.
These charts show the income range in which your deduction may be disallowed if you or your spouse participates in a retirement plan at work:
If you made a Traditional or Roth IRA contribution, you'll enter the amount by clicking on the Federal Taxes tab, then Deductions & Credits, then scroll down to Retirement & Investments and select Traditional & Roth IRA Contributions. Then follow the prompts.
Roth IRA contributions are not deductible, but they will still be factored into the calculation for the Retirement Saver's Credit.
Click here for additional information regarding Deductions Allowed for Contributions to an IRA.
Click here for information on what to do with Form 5498.
Click here for additional information on Form 5498.
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