Roth IRA contribution

Forum|Forum|2 years ago
January 31, 2024
2 replies
3 views

Why is my refund amount decreasing when entering my Roth IRA contributions? I have NOT exceeded the max amount allowed.

dmertz

Level 15

The information that you have entered into TurboTax does not support your assertion that you have not exceeded the permissible amount of a Roth IRA contribution. If you have not entered a sufficient amount of compensation from working to support the contribution or your Roth IRA contribution exceeds the amount permitted by your modified AGI for the purpose, you have made an excess contribution.

Also, enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax. If you entered any of these amounts under Deductions & Credits, go back and delete those erroneous entries.

DaveF1006

Level 15

I agree with @dmertz completely as his/her analysis is really in depth. I would like to expand what is mentioned about an excessive contribution regarding modified AGI (MAGI).

To contribute to a Roth IRA, single tax filers must have a modified adjusted gross income (MAGI) of less than $153,000 in 2023. In 2024, the threshold rises to $161,000.
If married and filing jointly, your joint MAGI must be under $228,000 in 2023. In 2024, the threshold rises to $240,000.

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