I made a contribution in March and December to a traditional IRA. Now TT thinks I contributed too much and owe 6% penalty.

Hoping someone can help me. I contributed $6K in Mar '24 and $7K in Dec '24 to a traditional IRA. The $6K was for tax year 2023. My 1099R shows the combined $13K of contributions in '24. When I enter all that into TT and select that I have nondeductible contributions (did a back door Roth IRA with all of these funds), it says I contributed too much in '24 and owe a 6% penalty. How do I resolve this?

1490

Expert Alumni

Mar 1, 2025 8:58:17 PM

The $6k contribution for 2023 made in 2024 should be reported on the 2023 tax return. You only report 2024 contributions on the 2024 tax return.

However, for the 1099-R that you received for the backdoor transaction, you report both, as you did withdraw it to convert in 2024. Then you will indicate that you converted all of it to a Roth IRA.

Here are the full instructions to report a Backdoor Roth: How do I enter a backdoor Roth IRA conversion?

Returning Member

Mar 2, 2025 4:43:38 AM

Thanks Mindy. I've done the exact steps you referenced here and I think I found the problem. I was pulling the basis from the previous year 8606 and it looks like that form was filled out wrong. I need to amend it.

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I made a contribution in March and December to a traditional IRA. Now TT thinks I contributed too much and owe 6% penalty.