I have never made excess IRA contributions. Why is the program showing excess and a penalty?

[SteamTrain]

@dunnet51 

hard to tell at this point with the really-early non-finished software...BUT

1)  have you entered your "W-2" job income, or finished filling in your self-employment cash/1099-NEC income and expenses??  IF not, the software may show an excess right now, because you cannot make an IRA contribution without first entering your "working" income for the year.

2)  Perhaps the software hasn't been updated with the 2024 contribution limits yet....i.e. might still be set to the 2023 limits.    If so, that will change in a future update.

3)  Make sure you only enter actual IRA contributions in the IRA/ROTH IRA contribution area.  Do Not enter any TSP/401k/403b contributions in the IRA contribution area....those other contributions are entered with your W-2 data...and they are NOT IRA's.

Probably one of those.