Excess Roth IRA contribution credit

[ronrichardson]

I transferred both my Thrift Saving Plan (TSP) Roth and traditional IRAs to a non-government Roth and traditional IRA accounts in Mar 2025.  Received a 1099-R from Trift Savings Plan for both Roth IRA and traditional IRA that were transferred.  The Roth IRA has a distribution code "H" and the tradtional IRA had a distribution code "G".

When entering both Thrift Savings Plan Roth IRA and traditional IRA information into TurboTax and went throught the review process, TurboTax said I had a "Excess Roth IRA contribution credit" on the IRA Contributions Worksheet, Line 26.  However the "taxpayer" field is blue  and blank so I assumed TurboTax wants me to enter a number to correct this error.

My question is why am I getting this error message in the first place when all I did is transfer both the Thrift Saving Plan Roth IRA and tradtional IRA to a non-goverment account?  What do I need to do within TurboTax to correct this error so that I can file my 2025 taxes?

[RogerD1]

The line 26 on the IRA contributions worksheet is unrelated to the rollovers you made from you Thrift Savings Plan.  That figure is used in Part IV of Form 5329 to determine Additional Tax on Excess Contributions to Roth IRAs.  Did you make excess contributions to a Roth IRA for either you or your spouse (if you have one) in 2024?  And did you leave an excess contribution to that Roth IRA in the account towards a 2025 contribution?  This may explain why it is showing up there.

Without having your actual return data here, it is difficult to say for sure why that number is there.  If you'd like, I would like to offer to take a closer look at this for you if your provide a diagnostic copy of your return, which is your return data with any personal identifiable information removed.  If you want to do that, follow these steps:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number  (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)