The cut off for married filed jointly ROTH IRA ($193,000) does not match the IRS's number ($198,000) . How do I correct this?

[amanda-conger]

https://www.irs.gov/retirement-plans/amount-of-roth-ira-contributions-that-you-can-make-for-2021

[MinhT1]

For the purposes of Roth contributions, you have to use your Modified Adjusted Gross Income (MAGI) which is your AGI adjusted by adding a number of deductions.

Please see Worksheet 2-1. Modified Adjusted Gross Income for Roth IRA Purposes in this IRS document.

[amanda-conger]

Thank you, yes. My MAGI is under $198,000 for married filing jointly, which as I understand it should mean that we can each contribute $6k to a ROTH IRA. However, the software is behaving as those we are in the phase out range (between $198,000 and $208,000) and suggesting that since we made the full $6k contribution to each ROTH that we need to remove some of that money. This is inaccurate. How do I get this reviewed/corrected?

[RaifH]

Yes, if your MAGI is under $198,000 you are able to make the full $6,000 contribution to your Roth. TurboTax does have the correct phase-out amount on the Roth IRA Contribution Limit Worksheet and calculates the allowed contribution based on $198,000. 

Your MAGI is the amount on Form 1040 Line 11 adjusted for:

1. Any amount due to a Roth conversion is subtracted out. However, if a Roth conversion was made in 2021 that was not allowed and the conversion was not recharacterized, the taxable amount of the 2021 conversion is NOT subtracted out, since this is considered a normal distribution from the traditional IRA and a regular contribution to a Roth IRA.
2. The IRA deduction claimed on Schedule 1 (Form 1040), line 19, is added back in.
3. The student loan interest deduction claimed on Schedule 1 (Form 1040), line 20, is added back in.
4. The foreign earned income exclusion figured on Form 2555 is added back in.
5. The foreign housing deduction or exclusion figured on Form 2555 is added back in.
6. The series EE bond interest exclusion from Form 8815 is added back in.
7. The excluded employer-provided adoption benefits from Form 8839 is added back in.

If your contribution is being limited and you do not believe your MAGI is over $198,000, try deleting the contribution and entering it back in. If it is still saying Your Roth Contribution Was Too High within the IRA contribution screens, it will show your modified adjusted gross income. If it is lower than $198,000 and you're filing jointly, could you take a screenshot of that screen?