Is there a maximum amount one can contribute to one's Roth IRA? After I paid off a bill, I increased my monthly contribution. Now there is a .06% penalty for excess contributions. Worksheet 2018 and Form 5329 do not fully explain.
Yes, for tax year 2018 Roth IRA contributions are limited to $5,500. This limit is shared between your Roth IRA and any regular IRA you contributed to. There may be additional limitations depending on your modified adjusted gross income.
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That's part of the problem. My total contributions were $4280, less than the $5500. I'm still being assessed the penalty. And I'm older than 50.
Your modified adjusted gross income may have come into play, further limiting the amount you were able to contribute this year. The IRS has a table detailing how this affects the amount you can contribute to a Roth IRA. <a rel="nofollow" target="_blank" href="https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that-you-can-make-for-2018">https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that-you-can-make-for-2018</a>