How do I explain to TurboTax that the money I used to start my Roth IRA was from years of saving and NOT from income generated over 2024 so that I can remove the penalty?

I made the max contribution of $7K from my years of saving to start my Roth IRA. I also started a business and barely made anything. So now TurboTax is telling me that I over paid into my Roth because you can't contribute more than you made. But the money didn't come from income of 2024, it came from past savings.

1188

Expert Alumni

Feb 11, 2025 4:06:25 PM

You, or your spouse if appliable, need to have earned income in the same year you contribute to a Roth (or any) IRA.

Go to the bank where you have the Roth account and ask them to help you withdrawal the funds to make the correction correctly.

Please click here for link to Roth IRA contributions 2024

HERE is a link about how you can correct the contribution

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How do I explain to TurboTax that the money I used to start my Roth IRA was from years of saving and NOT from income generated over 2024 so that I can remove the penalty?