Is TurboTax 2025 Incorrectly calculating Maximum ROTH IRA contribution limits?

[Rudy_V]

Hi

I’m having difficulty understanding how TT 2025 Premier (Desktop version) calculates the combined maximum allowed contribution on the ROTH IRA Contribution Limit Worksheet (line 6).  I think it incorrectly calculates the maximum contribution given what is asked on line 1 and what is calculated as the basis for line 6 given the output of lines 3 and 4.  I would greatly appreciate how the values in the worksheet are determined.  Here’s the background

Assume

Filing status: married couple to file jointly

Income:  $0 Adjusted gross income from Form 1040

Age: 70+ for both

MAGI:  $241,000

ROTH contributions for 2025:  $3500 actually contributed per taxpayer and spouse in 2025

IRA contributions for 2025:  $0

No prior ROTH or conventional IRA contributions for last 10 years

Using the TT ROTH IRA Contribution Limit Worksheet the following occurs:

Line 6:  Here it lists the maximum contribution for a married couple filing jointly (ie, $16,000).  I think this is incorrect since no adjustment is made for the phase out of contributions given MAGI exceeds $236,000 for married couple filing jointly.

Line 10:  Correctly shows the actual 2025 Roth contributions for both taxpayer and spouse (ie, $3500 each)

Line 16:  Shows the limited contribution for both taxpayer and spouse is $0, which I think is incorrect and should be $3500 for taxpayer and $3500 for spouse

Questions:

1. Shouldn’t line 6 of the TT ROTH IRA Contribution Limit Worksheet show a maximum allowable combined ROTH IRA contribution of $8000, which according to the IRS Phase out contribution calculator (Worksheet 2-1 of Publication 590-A) is $4000 per taxpayer?  Why else ask for income (line 1) and calculate the Maximum Contribution based on line 4 adjustment?
2. Consequently, shouldn’t line 8 of the TT Worksheet reflect the maximum allowable contribution of $4000 per taxpayer?
3. The actual amounts contributed to ROTH IRAs (ie, $3500 each) are well below that limit so why is TT showing the maximum ROTH contribution for 2025 is $0 on line 16 of the worksheet
4. Why does line 23 for Form 5329 show excess contributions of $3500 for both taxpayer and spouse when this value is below the maximum allowable ROTH IRA contribution of $4000 per taxpayer?
5. Why would line 25 of Form 5329 show a penalty of $210 (for the excess contribution of $3500, taxed at 6%) when the actual maximum contribution limit is $4000 and the contribution was made in 2025?

Thanks for responding.

[Opus 17]

You can't make any IRA contributions (Roth or traditional) unless you have compensation from working.  This is usually defined as wages reported on a W-2 in box 1, or net self-employment income from schedule C.  

I'm not clear on how you have zero income but a $241,000 MAGI.  Can you explain more about your situation?

Do you or your spouse have any income that is compensation from working?

If you did a conversion to a Roth IRA, conversions are not contributions, they are separate, and you should not enter a conversion in the contribution section. 

[Rudy_V]

Thanks Opus

I missed that part about earned income completely.  I get it now...must be working to contribute to a ROTH.  We've been retired for a while.