Roth IRA contribution TurboTax allowed me to make one without warning me now I am two years back in oat penalties. Why did this happen and how do I fix it?

[jbteagarden-gmai]

Why did TurboTax not pick up that I was over the income limit for IRA contribution and allow me to contribute? Who’s responsible? How do I fix it?

[fanfare]

it is now past extension date for 2024 return.

after tax due date including extensions: you distribute the excess amount being carried forward on 5329,
(or offset it with currently allowed contribution) .
Amended return(s) will be needed supplying that Form 5329 since there is a 6% penalty per year on accreting excess contributions .
Earnings stay in the Roth account.

Consult your custodian to obtain the correct removal form for this case before 12/31/2025.

If you made a contribution for 2025,

you need a "return excess plus earnings" form to resolve your issue before 4/15/2026.

@jbteagarden-gmai 

[Opus 17]

You don't provide enough information.

On the question of how did this happen, we would need to know what year, your other income, and whether you even entered the Roth IRA.  Roth contributions are not required to be entered on your tax return.  Turbotax asks for the amount to give you proper advice, but you might not have entered it.

On the question of how to fix it, we need to know what year or years you made the contribution, why you think were ineligible, whether you are eligible this year, did you make any IRA contributions this year, and whether or not you ever filed form 5329 to report the problem and pay a penalty.  

Also, please note that workplace plans (401k, 403b, etc.) are not IRAs, and the rules are different.  You are almost always eligible to contribute to a Roth account in a workplace plan even if you are not eligible to contribute to an IRA.