Contributed small amount to ROTH IRA

[habu72]

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.

[RaifH · Accepted solution]

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. 

[habu72]

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

Only income is SS and Pension.

Thanks

[Opus 17 · Accepted solution]

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@habu72 wrote:

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

Only income is SS and Pension.

Thanks

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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.