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gerard9
New Member

Why is my federal tax due amount increase when I enter an amount in a Roth IRA with pre-taxed dollars?

 
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HelenaC
New Member

Why is my federal tax due amount increase when I enter an amount in a Roth IRA with pre-taxed dollars?

Roth IRA contributions are made with after-tax dollars. Traditional IRA contributions are made with pre-tax dollars

You may not be eligible to contribute to an IRA or the amount may be limited. If the contribution amount is not allowed or limited, TurboTax is calculating a 6% penalty due to excess IRA contributions.

  • You will have a 6% excess contribution penalty for 2018 that repeats every year that it remains in the account. 
  • You need to take a normal distribution of the total excess before April 15, 2019 to prevent a 2018 penalty.

https://ttlc.intuit.com/replies/3301534

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1 Reply
HelenaC
New Member

Why is my federal tax due amount increase when I enter an amount in a Roth IRA with pre-taxed dollars?

Roth IRA contributions are made with after-tax dollars. Traditional IRA contributions are made with pre-tax dollars

You may not be eligible to contribute to an IRA or the amount may be limited. If the contribution amount is not allowed or limited, TurboTax is calculating a 6% penalty due to excess IRA contributions.

  • You will have a 6% excess contribution penalty for 2018 that repeats every year that it remains in the account. 
  • You need to take a normal distribution of the total excess before April 15, 2019 to prevent a 2018 penalty.

https://ttlc.intuit.com/replies/3301534

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