How do I account for catch up contributions

TurboTax will allow catch-up contributions based on entries- if you see something irregular, let us know.

I am 67.  I have both a Roth and an IRA SEP account.  My MAGI is ~110k.  I entered  $6500 for both accounts as a catch up contribution.  I did check the Maximize Contribution to Individual 401k box.  Without entering any additional contributions, I am getting a warning that I contributed too much to the Roth and I must withdraw $6000 by 4/18 or face an annual penalty and I do not understand why the catch up contribution is even being calculated as part of my annual contribution.  It is my understanding that it should not be.  Can you clarify this for me?

If you are over 50, you can make a total Roth IRA contribution of $7,000.   For your SEP IRA, there is no catch-up contribution amount, and your contribution is limited to 25% of your net earnings or $58,000. 

 

IRA Contributions - Here are the highlights:

• Annual contribution limit (2021): $6,000
• Additional catch-up contributions for those age 50 and older (2021): $1,000
• Income limits: Deductibility of contributions varies based on the type of IRA, filing status, and your (or your spouse’s) access to workplace retirement plans
• Matching contributions: None

 

SEP IRA Contributions - Here are the highlights:

• Annual contribution limit (2021): 25% of net earnings or $58,000, whichever is less
• Additional catch-up contributions for those age 50 and older (2021): None
• Income limits: Maximum compensation that can be considered is $290,000
• Matching contributions: None. All contributions are made by the employer

 

Click this link for more info on Retirement Accounts.

 

 

 

@schnipper1