Incorrect Roth IRA Contribution amount entered for Tax Year 2024

[ArnoldR]

Roth IRA Contributions

     Did xxxx make a Roth IRA contribution for 2023?

     Answer Yes if you haven't contributed to a Roth IRA yet, but plan to by April 15, 2024.

When I was entering Roth IRA Contributions for my wife and me (both 55 years old, married-filing-jointly) last year 2024 (for Tax Year 2023), I entered $7,500 for each of us. I made a deposit of $7,500 to my Roth IRA account. However, my wife forgot to make her $7,500 Roth IRA contribution before the April 2024 tax deadline.

I received Form 5498 from my brokerage around May 2024.

But, obviously, my wife did not because she was not able to make the contribution.
Is my wife still required  to make that $7,500  "catch-up" Roth IRA contribution for Tax Year 2023 to the brokerage that we declared in TurboTax (for Tax Year 2023) she would contribute but forgot to?
If yes, how do we do it?
Thanks

[dmertz · Accepted solution]

It's 11 months too late to contribute to a Roth IRA for 2023.

If your 2023 tax return did not include any Retirement Savings Contributions Credit for the Roth IRA contribution your wife intended to make, no amendment to the 2023 tax return is needed because the Roth contribution is not reflected anywhere on your 2023 tax return.  However, you'll want to correct TurboTax's Roth IRA contribution basis tracking for your wife by removing the $7,500 that was not contributed.  If the entry of your wife's proposed Roth IRA contribution into 2023 TurboTax did result the an increase in the Retirement Savings Contributions Credit, you'll need to amend the 2023 tax return and pay the additional tax.

[ArnoldR]

Thanks for your quick response.

If your 2023 tax return did not include any Retirement Savings Contributions Credit for the Roth IRA contribution your wife intended to make, no amendment to the 2023 tax return is needed because the Roth contribution is not reflected anywhere on your 2023 tax return. 

When I searched our Y2023 Tax Return for "Retirement Savings Contributions Credit ", it says we didn't qualify for this credit  as our income has to be lower than the IRS limit of $73,000. Since our income of $xx is greater than this limit, we didn't qualify for the credit last year.

However, you'll want to correct TurboTax's Roth IRA contribution basis tracking for your wife by removing the $7,500 that was not contributed.  If the entry of your wife's proposed Roth IRA contribution into 2023 TurboTax did result the an increase in the Retirement Savings Contributions Credit, you'll need to amend the 2023 tax return and pay the additional tax.

Given that we did not qualify for the "Retirement Savings Contributions Credit", is my understanding correct that no amendments to 2023 tax return is needed?

Please advise.
Thanks

[dmertz]

Correct.  Nothing on your filed 2023 tax return needs to change.  The only thing you need to correct is TurboTax's tracking of your wife's basis in Roth IRA contributions.