1. Why does my overall tax liability increase for a Roth IRA contribution with after tax earned income money from employment? Is this added to the MAGA?
2. I made what I thought was the maximum contribution of $7,500 for 2024, as I did for 2023--the year I retired. TT is flagging my 2024 Roth IRA contribution limit based upon only my 2024 W2 income--less than $2K after tax from back pay owed and telling me it exceeded the contribution limit. Note that $1K came from that and the rest of the contribution from a taxable high yield savings account that was funded entirely with money from taxable employment earned income over the years. I am roughly tracking the interest on that account and estimate that I can still contribute the maximum from it for another two years without using the interest from it.
Is there a way to correct this in TT to reflect this is actually from employment? Why is TT only focused upon the tax year on hand for W2 income or self-employment with no way to adjust it for after tax employment income saved in prior years?
