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New Member
posted Mar 29, 2020 2:43:23 PM

Roth Contribution limits for 2019

It appears that the Turbo Tax program is not computing excess contributions based on our understanding of the Modified Adjusted Gross Income for a Married Filing Jointly Tax return for 2019.  We expected it to compute an excess contribution for my spouse and myself,  both Age 62, if we contribute $7,000 a piece into our Roth IRA accounts.  Our MAGI appears to be in excess of $193,000 but less than $203,000.  Shouldn't Turbo Tax tell us what the excess contribution is?

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1 Replies
Expert Alumni
Mar 30, 2020 7:16:00 AM

Yes, after you have entered the information about your Roth IRA contributions, the program should give you information about any excess contributions that you have made and advice about what to do next.  

 

Use these steps to go to the section to enter your contributions, if you have not already done so:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “IRA contributions” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to IRA contributions”
  • Click on the blue “Jump to IRA contributions” link and enter your information

Here is some information about how to calculate the MAGI with regard to Roth IRA contributions.  The ability to contribute to a Roth IRA is based on your Modified AGI, which is the AGI shown on line 8b without taking into account the following items:

  • IRA deduction.
  • Student loan interest deduction.
  • Tuition and fees deduction.
  • Foreign earned income exclusion.
  • Foreign housing exclusion or deduction.
  • Exclusion of qualified savings bond interest shown on Form 8815.
  • Exclusion of employer-provided adoption benefits shown on Form 8839.

If any of those are included as part of your return, then they must be added to the amount shown on line 8b to determine your Modified AGI.

 

@KB57