AGI is $167K (and covered by a retirement plan). Contributed $6K to trad IRA in 2019 and TT says I'm $5.5K in excess and will incur a penalty. Is this correct?

4 replies
38 views

No text available

TurboTax Self Employed Online

dmertz

Level 15

This might be suggesting that you had a $5,500 excess contribution carried into 2019 from 2018. It could also mean that you only had $500 of compensation from which to make the contribution for 2019. You must have compensation to be able to contribute to an IRA.

anthonymariani19Author

Level 2

I had enough compensation from an employer to contribute to an IRA, and no excess contribution from previous years, so I'm confused as to why I'm getting hit with excess contributions. Any ideas? @dmertz

DianeC958

Alumni - Intuit

If your AGI is $167,000 and you are covered by a retirement plan at work, if you are Married Filing Joint the income limit to contribute to a Traditional IRA is $103,000 to receive the full deduction for the contribution.

If you are Single the income amount is limited to $64,000.

If you do not want to pay the penalty you need to remove the excess amount before you file your return.

2019 IRA Deduction Limits

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"