Does the amount I enter in Turbo Tax as my ROTH IRA CONTRIBUTION get reported to the IRS or is it just for help me keep track of my contributions? Thanks for the help!

[tjm613]

I added funds after filing taxes. Is that a 1040X reportable issue or just a matter of updating TT in 2020 for 2019 tracking?

[Cindy0H · Accepted solution]

No, it is not reported on your return. 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. Just update in 2019, don't amend your return with a 1040X.

[tjm613]

Thanks for taking the time to share your insight & knowledge. I do understand the tracking component, potential for credits, five year rule etc. IRAs are beautiful tools! Among all the details I forgot whether IRS tracks from me and/or only the Financial Institutions. I will update TT 's tracking but no need to file 1040X to Amend. Your comment, and its directness, has given me the info I need!  I appreciate the TT Support & Community. Though I've filed for MANY decades, I've found it helpful to reach out each year for a clarification or corroboration. I'll focus on updating TT's tracking to correct the erroneous figure for next year's transfer, without regard to notify IRS.  Thank you!

[macuser_22]

A Roth IRA contribution does not actually go on a tax return, but you should enter it anyway to:

1) Tell you if your income qualifies you for a contribution and warn you if it does not.
2) Check if your income exceeds the limit to contribute to a Roth.
3) Track your contribution year-to-year if you use TurboTax every year.
4) Add the Retirement Savers Credit if you qualify.

[tjm613]

Thanks for taking the time to share your insight. Your answer was helpful. I am familiar with the factors you itemized, and an understanding of the layered aspects of IRAs is very important. I've used these vessels since about 1980 and the devil and wonder are in the details.  Your rounding of the answer is reassuring. The review is sincerely appreciated. Looks like I can update but a 1040X is not required. I'll focus on updating TT's tracking to correct the erroneous figure for next year's transfer, without regard to notify IRS. Thank you!