If I contributed only $1,150 to my Roth IRA last year, yet TurboTax has me paying $69 tax on my contribution. As Roth is post-tax, why is there an additional $69 tax?
posted
June 1, 20191:40 PM
last updated
June 01, 20191:40 PM
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If I contributed only $1,150 to my Roth IRA last year, yet TurboTax has me paying $69 tax on my contribution. As Roth is post-tax, why is there an additional $69 tax?
A 6% excise tax applies to any excess contribution to a Roth IRA. It would appear your $1,150 is excess, as 6% of $1,150 results in the $69 penalty.
If your modified adjusted gross income is above a certain amount, your contribution limit is gradually reduced.
If I contributed only $1,150 to my Roth IRA last year, yet TurboTax has me paying $69 tax on my contribution. As Roth is post-tax, why is there an additional $69 tax?
A 6% excise tax applies to any excess contribution to a Roth IRA. It would appear your $1,150 is excess, as 6% of $1,150 results in the $69 penalty.
If your modified adjusted gross income is above a certain amount, your contribution limit is gradually reduced.
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