How do I enter a Roth contribution related to Self-employment. Net income was $27000 from contract work. Retired from regular employment but have IRA incomes.

ralcrna · ‎June 5, 2019

When I try to enter a Roth in a conventional manner I get an excess contribution and additional tax ($390). My AGI is above $199000 and married filing jointly. Know I it may not be deductible, just need to get it in there.

Ashby · ‎June 5, 2019

Roth IRAs are not deductible. You contribute with after-tax income.

If your income is above $199k, you will have an excess contribution because you can't contribute to a Roth with that much income. So, you will be subject to the 6% excise tax. $6,500 x .06 = $390

I am not a financial advisor, but it sounds like you may want to move this over to a traditional IRA.

View solution in original post

How do I enter a Roth contribution related to Self-employment. Net income was $27000 from contract work. Retired from regular employment but have IRA incomes.

Retirement tax questions