TT says max Roth contribution is $6500 for 2018. Did $24500 thru payroll deductions to Roth 401k.

[cliffoehme2]

I contributed $24500 in 2018 to Roth 401k thru payroll deductions.  On Roth IRA Contribution Limit Worksheet under Your IRA TT says max Roth contribution allowed is $6500.  Spouse is retired, no income.  TT wants to ding me 6% of the "excess" $18000 on 1040 line 14.

Seems like TT forgot the contributions were through payroll deductions, as entered from my W-2.  What now?

[VolvoGirl · Accepted solution]

Only enter it from the W2, nowhere else.  It is not a new IRA contribution.  Do not enter it again under Deductions & Credits.  A 401K is not a IRA.

[Coleen3]

A Roth 401k and a Roth IRA are not the same thing. With your Roth 401k, you contributed through work and that contribution is done. If you wish to contribute separately to an Roth IRA, that limit is $5,500 ($6,500 if over age 50).

If you don't want to contribute the amount to an IRA, delete your entries.

https://www.irs.gov/retirement-plans/roth-comparison-chart

[cliffoehme2]

Thanks, that fixed it.  But to clarify, since I already contributed $18000 plus $6500 catchup to the Roth 401k then I am not even eligible to contribute to a Roth IRA, right?

[cliffoehme2]

Thanks, that fixed it.  But to clarify, since I already contributed $18000 plus $6500 catchup to the Roth 401k then I am not even eligible to contribute to a Roth IRA, right?

[VolvoGirl]

I’m not sure.  You might be able to.  @dmertz

[dmertz]

Your contributions to the Roth 401(k) have no effect on the amount you can contribute to a Roth IRA.  If your modified AGI permits, you can contribute up to $6,500 to a Roth IRA:

<a rel="nofollow" target="_blank" href="https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that...>

To correct the previous information, your total of $24,500 of contributions to the Roth 401(k) consists of $18,500 of regular contributions and $6,000 of catch-up contributions.