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I'm 71 1/2, retired, received IRA RMD. Wife 67, earned $22 K. She sent $6,500 to her IRA and $6,500 to my IRA. T-tax says $6500 to my IRA is excess. How can I enter?

My wife began receiving soc sec in June 2018. Vanguard has both our retirement accounts and stated it's OK with the IRS for her to contribute to both my IRA and her IRA up to the $13,000 per couple limit. We are filing a joint return. Vanguard claims the $13K deduction is permitted.  How can I enter this correctly in Turbo-tax? I  retired in 2014.  We were careful to have health insurance coverage thru her employer and then thru medicare to avoid the coverage gap penalty. 

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Level 1

I'm 71 1/2, retired, received IRA RMD. Wife 67, earned $22 K. She sent $6,500 to her IRA and $6,500 to my IRA. T-tax says $6500 to my IRA is excess. How can I enter?

Was this a traditional IRA you contributed to? You can’t make regular contributions to a traditional IRA in the year you reach 70½ and older. However, you can still contribute to a Roth IRA regardless of your age. If it was a contribution to a Roth IRA then please double check that it was entered as a Roth IRA contribution in TurboTax.

An excess IRA contribution occurs if you:

  • Contribute more than the contribution limit.
  • Make a regular IRA contribution to a traditional IRA at age 70½ or older.
  • Make an improper rollover contribution to an IRA.

Excess contributions are taxed at 6% per year as long as the excess amounts remain in the IRA. The tax can’t be more than 6% of the combined value of all your IRAs as of the end of the tax year.

To avoid the excess contributions tax:

  • withdraw the excess contributions from your IRA by the due date of your individual income tax return (including extensions); and
  • withdraw any income earned on the excess contribution.
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Level 1

I'm 71 1/2, retired, received IRA RMD. Wife 67, earned $22 K. She sent $6,500 to her IRA and $6,500 to my IRA. T-tax says $6500 to my IRA is excess. How can I enter?

Was this a traditional IRA you contributed to? You can’t make regular contributions to a traditional IRA in the year you reach 70½ and older. However, you can still contribute to a Roth IRA regardless of your age. If it was a contribution to a Roth IRA then please double check that it was entered as a Roth IRA contribution in TurboTax.

An excess IRA contribution occurs if you:

  • Contribute more than the contribution limit.
  • Make a regular IRA contribution to a traditional IRA at age 70½ or older.
  • Make an improper rollover contribution to an IRA.

Excess contributions are taxed at 6% per year as long as the excess amounts remain in the IRA. The tax can’t be more than 6% of the combined value of all your IRAs as of the end of the tax year.

To avoid the excess contributions tax:

  • withdraw the excess contributions from your IRA by the due date of your individual income tax return (including extensions); and
  • withdraw any income earned on the excess contribution.