For years, due to my AGI, I’ve elected to pay the 6% penalty on my excess Roth IRA contributions:
I’m confused because this is the first year that I’m being prompted to enter an amount on the IRA contribution worksheet in the "excess Roth contribution credit" field? Why is that? What should I enter in this field?
You'll need to sign in or create an account to connect with an expert.
It seems that you are able to apply some of your excess contribution as a Roth IRA contribution for 2023.
The easiest way to enter this amount is going through the IRA contribution interview:
Please see What happens if I made an excess Roth IRA contribution for additional information.
The program is giving me the excess contribution amount of $1800. However, if I apply that full amount to this year it shows my total contribution as $2400 (which is the total of this year and all previous year's excess contributions) which is confusing because I'm only putting in $600 this year. Also, it takes away any penalties? The money is not withdrawn so there should still be penalties, correct?
If you are able to make Roth IRA contributions for 2023 and didn't contribute the full amount then you are able to apply the excess contribution from prior years to 2023. This means the excess contribution is resolved and you no longer have to pay the 6% penalty.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
megan0956
Returning Member
Nick2024
Returning Member
SoCalRetiree
Level 1
ayubruin7777
Level 1
Andy_W
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.