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?

[DoninGA]

Why do you think you can contribute up to $22,000 annually to a Roth IRA?

Go to this IRS website for IRA contribution limits - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-li...

[DoninGA]

Or are you contributing to a employer sponsored retirement plan which is a Roth 401(k)?

If that is what you are contributing to the amount of the contribution would be entered on your W-2 in box 12 with a code of AA

[Opus 17]

Qualified workplace plans (401k, 403b, etc) are NOT IRAs.  They have different rules and are reported in different places in your tax return, even though they seem like they are similar.

Your workplace plan is probably a 403b.  It's reported on your W-2, only enter it there.  Don't enter additional IRA contributions unless you actually contributed to a private IRA you opened in your own name.  (IRA meaning "individual" -- workplace plans are not IRAs.)

Delete the Roth contributions.