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posted Apr 14, 2025 6:31:20 PM

I am well within the limits of the 401K Roth and IRA Roth. What am I not telling TT correctly?

401K linked Roth and Roth IRA – contribution error from TT-Premium-Online (Filing single). I contributed to employer 401K plan – 2 deductions on W2 Box 12 (Code D (401K–pretax$) + Code AA (401K Roth (after tax$) – below max $23K). No Form 5498. Only W2info In addition, Contribute 7K to Roth IRA (limit is 7K). Got 5498. Getting error (Income Too High To Deduct an IRA Contribution Your MAGI puts you over the limit for IRA deductions. To deduct a contribution, you can't have a MAGI of over $87,000 while being covered by a retirement plan at work) I am well within the limits of the 401K Roth and IRA Roth. What am I not telling TT correctly?

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1 Replies
Level 15
Apr 15, 2025 6:01:09 AM

You've entered your $7,000 Roth IRA contribution as a traditional IRA contribution or when entering the Roth IRA contribution you told TurboTax that you "switched" (recharacterized) the Roth IRA contribution to be a traditional IRA contribution instead.  If you told TurboTax that you switched your contribution but did not, go back and correct that in the Roth IRA contribution section, otherwise remove the traditional contribution entry and make a Roth IRA contribution entry.