i had excess roth contributions for 2016 and i want to leave it and pay 6 % penalty. but turbo tax is flagging me for ira value on worksheet and if i put in any amount other than the amt of the contribution it removes the penalty that i know i have to pay and increases my refund amt. how do i resolve this issue?
What value on what worksheet? TurboTax handles this correctly provided correct entries are made.
Make sure that you are entering the entire Roth IRA contribution that you made and you have not indicated that you will be receiving a return of excess contribution before the due date of your tax return. You should be making these entries in step-by-step mode. If you are making entries in forms mode, be aware that TurboTax's accuracy guarantee does not apply to errors resulting from entries made in forms mode.
When you have an excess contribution in your Roth IRA, the penalty is 6% of the lesser of the amount of the excess or the total 2016 year-end balance in all of your Roth IRAs. TurboTax therefore requires that you enter the year-end balance on line A of the Roth IRA Value Smart Worksheet.
Normally you would do this in step-by-step mode by clicking the Continue button on the Your 1099-R Entries page and proceeding through all of the follow-up, including indicating that you will not be requesting a return of excess contribution and then entering your total year-end balance you have in your own in Roth IRAs. You can also do this in forms mode or during the Smart Check by making the entry directly on line A of the Roth IRA Value Smart Worksheet that is part of TurboTax's 5329 form.
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