Roth IRA contribution

[mmgaeta]

My husband and I each contributed to a Roth IRA in 2021. Late in the year we were expecting a one-time income that would have put us over the income limit to contribute to a Roth IRA. In anticipation of this, we withdrew our contributions and earnings as an excess contribution. However, we ended up not receiving the extra income until 2022. Can we go back and make Roth contributions for 2021?

[Cynthiad66 · Accepted solution]

Yes.  You have until April 15 2022.

As noted, the most you can contribute to your Roth and traditional IRAs in the year leading up to April 15, 2022 (for the 2021 tax year) and then again for the year 2022 leading up to April 15, 2023 (for the 2022 tax year) is: $6,000 if you're younger than age 50.

[jaco57]

i am told i will get a form 5498 for this in May. That seems weird since My taxes will already be done by then. if i want to now, where do i show that i have contributed to a roth ira for 2021 on turbotax (or tax form?) i got no paperwork from Schwab about it and they said i wont until may.

[SDun12]

Form 5498 isn't required to prepare your tax return as it is just an information form.  It is typically sent out after the deadline, and sometimes not until much later in the year because it shows contributions made in a year, and the time period to make those contributions is still open. 

You do not report a Roth IRA anywhere on your tax return.   Turbo Tax asks for that information to be sure you didn't contribute if you weren't eligible, but as long as you are eligible to contribute there is nothing to include on your tax return.