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How much can I contribute to a ROTH IRA? I am over 50, contribute to a traditional 401K at work (1,505.36) and my employer matches part (1,204.27)?

 
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How much can I contribute to a ROTH IRA? I am over 50, contribute to a traditional 401K at work (1,505.36) and my employer matches part (1,204.27)?

You can contribute up to $6,500 each year (for each spouse, if married), if you're at least 50 years old, to a Roth IRA (5,500 if you're under 50).

You do not need to include contributions to a Roth in your return because there is no deduction benefit for contributing

While Roth contributions are not reported on your tax return, it is a good idea to enter them the in the IRA contribution section anyway because TurboTax will:

  • track the basis of your contributions for you year-to-year. [This becomes important when you start making withdrawals--to track how much of the distribution is taxable.]
  • alert you if your MAGI exceeds the Roth contribution limit and are subject to a penalty.
  • alert you if you have insufficient earned compensation to contribute.

To enter contributions to a Roth IRA in TurboTax, please follow these steps:

  1. Click on Federal > Deductions & Credits  [In TT Self-Employed:  Personal > Deductions & Credits > I'll choose what I work on].
  2. Scroll down to the Retirement and Investments section and click on the Start/Revisit box next to Traditional and Roth IRA Contributions.  [See Screenshot #1, below]
  3. On the Traditional IRA and Roth IRA screen, mark the box for Roth IRA and click Continue. [Screenshot #2]
  4. Click the appropriate box on Is This a Repayment of a Retirement Distribution? 
  5. On the Enter Your Roth IRA Contributions screen, enter the amount of your contribution.  [Screenshot #3]
  6. Continue through the screens, entering the requested information.
  7. On the Enter Your Roth IRA Contributions screen, enter the amount of your contribution and click Continue.  
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Highlighted
Level 14

How much can I contribute to a ROTH IRA? I am over 50, contribute to a traditional 401K at work (1,505.36) and my employer matches part (1,204.27)?

You can contribute up to $6,500 each year (for each spouse, if married), if you're at least 50 years old, to a Roth IRA (5,500 if you're under 50).

You do not need to include contributions to a Roth in your return because there is no deduction benefit for contributing

While Roth contributions are not reported on your tax return, it is a good idea to enter them the in the IRA contribution section anyway because TurboTax will:

  • track the basis of your contributions for you year-to-year. [This becomes important when you start making withdrawals--to track how much of the distribution is taxable.]
  • alert you if your MAGI exceeds the Roth contribution limit and are subject to a penalty.
  • alert you if you have insufficient earned compensation to contribute.

To enter contributions to a Roth IRA in TurboTax, please follow these steps:

  1. Click on Federal > Deductions & Credits  [In TT Self-Employed:  Personal > Deductions & Credits > I'll choose what I work on].
  2. Scroll down to the Retirement and Investments section and click on the Start/Revisit box next to Traditional and Roth IRA Contributions.  [See Screenshot #1, below]
  3. On the Traditional IRA and Roth IRA screen, mark the box for Roth IRA and click Continue. [Screenshot #2]
  4. Click the appropriate box on Is This a Repayment of a Retirement Distribution? 
  5. On the Enter Your Roth IRA Contributions screen, enter the amount of your contribution.  [Screenshot #3]
  6. Continue through the screens, entering the requested information.
  7. On the Enter Your Roth IRA Contributions screen, enter the amount of your contribution and click Continue.  
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post