It would seem that the Roth IRA contribution does exceed the amount that you are eligible to contribute either because you have not entered sufficient compensation to support the Roth IRA contribution or because your modified AGI for this purpose exceeds the amount for your filing state above which the contribution becomes limited below the overall annual limit. Examine TurboTax's Roth IRA Contribution Limit Worksheet to see the calculation of your maximum permissible Roth IRA contribution.
It could be that your Modified Adjusted Gross Income (MAGI) is above the limit to allow you to make the Roth IRA contribution. If that is the case, you are being penalized for an excess contribution. Pay close attention to the information on the screen as TurboTax will calculate the MAGI and show messages to tell you the amount you are allowed to contribute.
To learn more, take a look at the following:
Amount of Roth IRA contributions that you can make for 2024
return of excess contribution:
before tax filing date including extension: positive earnings allocable to the excess are included in income on 1040 Line 4b for the year of the contribution. negative earnings are ignored; in any case, for purposes of basis, consider the original contribution amount as returned.
["Include the earnings in income for the year in which you made the contributions, not the year in
which you withdraw them."]
You must have a) filed by tax day, or b) requested an extension of time to file by tax day to take advantage of the Oct 15 deadline.
positive earnings removed are no longer penalized 10% if you are under age 59 1/2. (eliminated in 2023)
Consult your custodian to obtain the correct removal form for "excess plus earnings".
Note if you plan to remove only exactly the excess part, you have to add a fudge factor, because the returned allocable earnings will increase your MAGI and leave you still in excess.