Contributed small amount to ROTH IRA

Forum|Forum|4 years ago
January 28, 2022
1 reply
2 views

Using TurboTax on windows 11
Enter Roth contributions - $50.
Did not switch from Roth to Trad
Don't track Roth IRA basis
No excess Roth contributions
I entered value of Roth IRA Dec 31, 2021 $nn,nn
Your Roth contribution was too high!

I don't understand.

Best answer by RaifH

Your Roth IRA contribution can be limited in a few ways:

You must have earned income in 2021 to contribute to a Roth IRA.
Your contribution to a Roth IRA has a limit depending on your income and filing status, and whether your work offers a retirement plan. For full details, take a look at this chart from the IRS.

If you are not eligible to contribute to a Roth in 2021, you can pull out the contribution and any earnings before the tax return due date to avoid any penalties.

RaifHAnswer

Level 10

Your Roth IRA contribution can be limited in a few ways:

You must have earned income in 2021 to contribute to a Roth IRA.
Your contribution to a Roth IRA has a limit depending on your income and filing status, and whether your work offers a retirement plan. For full details, take a look at this chart from the IRS.

If you are not eligible to contribute to a Roth in 2021, you can pull out the contribution and any earnings before the tax return due date to avoid any penalties.

habu72Author

Level 3

That's true. I am retired and have no W2.

Only income is SS and Pension.

Thanks

Opus 17

Level 15

@habu72 wrote:

That's true. I am retired and have no W2.

Only income is SS and Pension.

Thanks

To make a Roth contribution you must have compensation, that generally means income earned from performing a service or providing goods. You could, for example, go to work at HappyMart for a week as a greeter, make $150, and then contribute the entire $150 to a tradition or Roth IRA. But you must have some kind of earned compensation.

You can do a rollover from a traditional IRA to a Roth IRA, because a rollover is different from a contribution.