You don't have to report your contribution to a Roth IRA; however, you may want to input it into TurboTax so you can track your basis. In order to avoid paying taxes on the earnings, it’s necessary to leave
your contributions in your Roth IRA for at least five years.
To enter a Roth IRA contribution go to:
Then why does TurboTax ask me about my contributions to Roth IRA and when I enter the amount it lowers my tax refund by a LOT. if it's not required to report, then why is it affecting my return? Makes no sense.
The reason why you would want to report it is to track your basis. The only reason why it would lower your refund is that it may be an excess contribution, especially if you make additional payroll or other contributions to other retirement plans.
Same thing is happening to me. It makes no sense, because I am within the contribution limit. There should be no additional taxes due, I already paid tax on the contribution.
Please be aware, yes the same general contribution limit applies to both Roth and traditional IRAs. However, your Roth IRA contribution might be limited based on your filing status and income. Please see 2019 - Amount of Roth IRA Contributions You Can Make for 2019 for details.
Therefore, if your modified adjusted gross income is too high you will be limited how much you can contribute and will have to pay a penalty if this results in an excess contribution.
General contribution limits:
For 2019, your total contributions to all of your traditional and Roth IRAs cannot be more than: