TurboTax will let you know if you overcontributed to your Roth IRA, and if you want to avoid the penalty, you have two options:
- Withdraw the excess contribution plus earnings: Keep in mind that the earnings are included in your taxable income for the year the excess contribution was made, so you’ll still receive a 1099-R to report these earnings on your tax return.
- Recharacterize the Roth IRA contribution as a traditional IRA contribution: Contact your plan administrator for guidance on this process. After you’ve made your recharacterization, see how to record this process in TurboTax.
Here's more detailed info on Excess Roth Contributions.
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