I want to contribute to a Roth IRA. According to TurboTax, this is causing an increase to my taxes for the current year. Why is this happening? Our AGI is only $14,000.
041362
1 Best answer
VolvoGirl
Level 15
Jun 3, 2019 11:44:27 AM
You can only contribute from earned income like W2 wages or a Net Profit from self employment. You need to take the contribution out of the IRA account right away! Or you will keep getting penalized for the excess contribution.
4 Replies
SweetieJean
Level 15
Jun 3, 2019 11:44:25 AM
Is the AGI earnings from work, or a profit from self-employment?
SJ1731
New Member
Jun 3, 2019 11:44:26 AM
It's from Social Security.
VolvoGirl
Level 15
Jun 3, 2019 11:44:27 AM
You can only contribute from earned income like W2 wages or a Net Profit from self employment. You need to take the contribution out of the IRA account right away! Or you will keep getting penalized for the excess contribution.
SJ1731
New Member
Jun 3, 2019 11:44:31 AM
Thanks. The good news is that I have not made the contribution. I came here to ask before I went ahead with it.