Received 1099R for a deferred comp distribution. It is my only earned income. I used the distribution to contribute to a Roth IRA. How do I enter this in Turbo Tax?

[ThomasM125]

You need to follow these steps to enter your form 1099-R:

1. Locate the "Income and Expenses" menu option in the federal section of TurboTax

2. Scroll down to "Retirement Plans and Social Security" and click on the "Show More" option

3. Click on the "Start" box next to "IRA, 401(k), Pension Plan Withdrawals(1099-R)"

4. Follow the instructions to enter your form 1099-R

[dmertz]

Deferred compensation is not earned income that is eligible to support an IRA contribution.  Unless you have other compensation from which to make the IRA contribution or you obtain a return of the excess contribution before the due date of your tax return, you will owe a 6% excess-contribution penalty each year that the excess remains in your IRA.