I've had the same Roth IRA for years. Now, I see there's a tax on excess contributions. Is this because of the new regulations?

[bvmbvm]

Is there a maximum amount one can contribute to one's Roth IRA? After I paid off a bill, I increased my monthly contribution. Now there is a .06% penalty for excess contributions.  Worksheet 2018 and Form 5329 do not fully explain.

[Anonymous]

Yes, for tax year 2018 Roth IRA contributions are limited to $5,500. This limit is shared between your Roth IRA and any regular IRA you contributed to. There may be additional limitations depending on your modified adjusted gross income.

https://ttlc.intuit.com/replies/3301930

[bvmbvm]

That's part of the problem. My total contributions were $4280, less than the $5500. I'm still being assessed the penalty.  And I'm older than 50.

[Anonymous]

Your modified adjusted gross income may have come into play, further limiting the amount you were able to contribute this year. The IRS has a table detailing how this affects the amount you can contribute 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...>

[bvmbvm]

Thank you. That was very helpful, and it did explain my situation.