cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

I've had the same Roth IRA for years. Now, I see there's a tax on excess contributions. Is this because of the new regulations?

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.

4 Replies
Employee Writer

I've had the same Roth IRA for years. Now, I see there's a tax on excess contributions. Is this because of the new regulations?

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.

https://ttlc.intuit.com/replies/3301930


Level 1

I've had the same Roth IRA for years. Now, I see there's a tax on excess contributions. Is this because of the new regulations?

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.
Employee Writer

I've had the same Roth IRA for years. Now, I see there's a tax on excess contributions. Is this because of the new regulations?

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...>
Level 1

I've had the same Roth IRA for years. Now, I see there's a tax on excess contributions. Is this because of the new regulations?

Thank you. That was very helpful, and it did explain my situation.