Remove ROTH IRA penalty

Forum|Forum|7 years ago
June 1, 2019
4 replies
20 views

I entered my personal information - including contributions to my ROTH IRA - and got hit with a penalty because I didn't have any "earned income".

I then entered my business income (my only income) on the business tab, but the penalty will not go away. Is business income not allowed for ROTH IRA contributions?

TurboTax Home & Biz Windows

MichaelL1

Level 15

Do you have a profit on the business?

ernienetAuthor

Level 2

Net loss this year.

ernienetAuthor

Level 2

Schedule C business

MichaelL1

Level 15

The Sch C is earned income on the net profit.

A loss will not work for doing an IRA if that is only earned income.

ernienetAuthor

Level 2

That doesn't seem right - I only have business income. It exceeds what I contributed to my Roth IRA. After entering business expenses this year, I have a net loss. So the IRS makes it worse by adding a penalty for contributing to my Roth IRA? Am I supposed to know before I make my monthly contributions to my ROTH that at the end of that year I'm going to end up with a net loss?