Roth contributions

[Cbean67]

I am contributing to a university sponsored Roth IRA, I am allowed to contribute around $22,000 annually and not be penalized.

I called them to make sure about this.

I contributed around $9,800 in 2023 but when I enter that amount in the program it says I am being penalized for everything over $7,500.

What am I doing wrong?

[dmertz · Accepted solution]

The account to which you made employee contributions is not a Roth IRA but is instead a designated Roth account in a 401(k), 403(b) or 457(b).  Enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.  Go back to Deductions & Credits and remove the mistaken entry that you made there.