Your Roth contributions are independent of the life insurance distribution since life insurance is not eligible for rollover treatment. The 1099-R for the life insurance must be entered as is.
For 2015, 2016, 2017 and 2018, your total contributions to all of your traditional and Roth IRAs cannot be more than:
- $5,500 ($6,500 if you’re age 50 or older), or
- your taxable compensation for the year, if your compensation was less than this dollar limit.
(Taxable compensation is generally money that you worked for - W-2 or self-employed income)
If the amount you put into the Roth exceeds these limits, then is is an excess contribution that must be removed or it will be subject to a penalty.
**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.**
